Document:

Transfer and Assumption Agreements

 Exhibit 10.2 
  
 TRANSFER AND ASSUMPTION AGREEMENT 
  

  
 by and among 
  
 Calpine Corporation, 
  
 CPN Pipeline Company 
  
 Rosetta Resources California, LLC, 
  
 Rosetta Resources Offshore, LLC, 
  
 Rosetta Resources Rockies, LLC, 
  
 and 
  
 Rosetta Resources Texas LP 
  
 July 7, 2005 

 TABLE OF CONTENTS 
  

					
	 	 	 	  	Page

	 Section 1.
	 	Definitions	  	1
			
	 Section 2.
	 	Assignment of Properties	  	9
	 	 	 (a)    Properties
	  	9
	 	 	 (b)    Excluded Properties
	  	11
			
	 Section 3.
	 	Acceptance of Properties and Assumption of Continuing Rights and Obligations	  	12
			
	 Section 4.
	 	Liabilities Relating to the Properties	  	13
	 	 	 (a)    Assumed Liabilities
	  	13
	 	 	 (b)    Assignor’s Retained Liabilities
	  	13
	 	 	 (c)    Release and Indemnification
	  	13
	 	 	 (d)    Acknowledgement
	  	14
	 	 	 (e)    Limitations of Warranties
	  	14
			
	 Section 5.
	 	Preferential Rights and Third Party Consents	  	16
			
	 Section 6.
	 	Governmental Bonds	  	17
			
	 Section 7.
	 	Presence of Wastes, NORM, Hazardous Substances and Asbestos	  	18
			
	 Section 8.
	 	Suspense Funds Held by Assignor	  	18
			
	 Section 9.
	 	Further Assurances	  	19
			
	 Section 10.
	 	Confidentiality	  	19
			
	 Section 11.
	 	Preservation of Legal Privileges	  	20
			
	 Section 12.
	 	Closing	  	20
	 	 	 (a)    The Closing
	  	20
	 	 	 (b)    Closing Deliveries
	  	21
	 	 	 (c)    Turn Over Possession
	  	21
			
	 Section 13.
	 	Transfer of Records	  	21
			
	 Section 14.
	 	Laws and Regulations	  	21
			
	 Section 15.
	 	Casualty Loss	  	22
			
	 Section 16.
	 	Insurance	  	22
			
	 Section 17.
	 	Assignees’ Risk of Loss	  	22

					
	 Section 18.
	 	Arbitration	  	22
			
	 Section 19.
	 	Notice	  	23
			
	 Section 20.
	 	Governing Law	  	24
			
	 Section 21.
	 	Entire Agreement	  	24
			
	 Section 22.
	 	Assignment	  	24
			
	 Section 23.
	 	Amendment; Waiver	  	25
			
	 Section 24.
	 	Severability	  	25
			
	 Section 25.
	 	Headings	  	25
			
	 Section 26.
	 	Construction	  	25
			
	 Section 27.
	 	Counterparts	  	25
			
	 Section 28.
	 	Imbalances	  	26
			
	 Section 29.
	 	Survival	  	26

  

 ii 

 EXHIBITS AND SCHEDULES 
  
 Exhibits 
  

					
	 Exhibit A
	 	-	    	Assignees and Transferred Properties
	 Exhibit B
	 	-	    	Leases
	 Exhibit B-1
	 	-	    	Non-Consent Leases
	 Exhibit C
	 	-	    	Wells; Net Revenue Interest
	 Exhibit C-1
	 	-	    	Non-Consent Wells; Net Revenue Interests
	 Exhibit C-2
	 	-	    	Description of Rio Vista Gathering System Included in the Properties
	 Exhibit D
	 	-	    	Intentionally Omitted
	 Exhibit E
	 	-	    	Intentionally Omitted
	 Exhibit F
	 	-	    	Governmental Bonds
	 Exhibit G
	 	-	    	Form of Conveyance
	 Exhibit H
	 	-	    	Form of Joint Defense Agreement
	 Exhibit I
	 	-	    	Contracts
	 Exhibit J
	 	-	    	Form of Assignment of Contracts
	 Exhibit K
	 	-	    	JOA

  
 Schedules 
  

					
	 Schedule 1
	 	-	    	Liens
	 Schedule 4(b)
	 	-	    	Assignor’s Retained Liability – Claims and Litigation Matters
	 Schedule 28
	 	-	    	Imbalances

  

 iii 

 TRANSFER AND ASSUMPTION AGREEMENT 
  
 This Transfer and Assumption Agreement (this “Agreement”) is made and entered into on July 7, 2005 by and
among Calpine Corporation, a Delaware corporation and CPN Pipeline Company, a Delaware corporation (collectively referred herein as, the “Assignor”), and the subsidiaries of Calpine Gas Holdings LLC (“CGH”) that are
identified as assignees on the signature pages hereto (collectively, the “Assignees”). Assignor and the Assignees are sometimes collectively called “Parties” and each individually a “Party”.

  
 W I T N E S S E T H: 
  
 WHEREAS, Assignor owns interests in certain oil and gas properties situated
in the United States and more fully described herein (the “Oil and Gas Interests”); and 
  
 WHEREAS, Assignor desires to capitalize CGH and Assignees by contributing (i) the Oil and Gas Interests and (ii) all continuing rights, benefits, duties
and obligations with respect thereto to Assignees in return for the assumption by Assignees of certain liabilities with respect to the Oil and Gas Interests; and 
  
 WHEREAS, CGH has requested Assignor, and Assignor has agreed to make such transfers and contributions to Assignees; and

  
 NOW, THEREFORE, for valuable consideration and in
consideration of the mutual promises and agreements contained herein, the Parties execute this Agreement and covenant and agree as follows: 
  
 Section 1. Definitions. As used herein the following terms have the meanings given them below, except as otherwise expressly provided: 

 
 “Adverse Environmental Condition” means
any contamination or condition exceeding regulatory limits and not otherwise permitted or authorized by permit or law, resulting from any discharge, release, production, storage, treatment, seepage, escape, leakage, emission, emptying, leaching or
any other activities on, in or from any Property, or the migration or transportation from other lands to any Property, of any wastes, pollutants, contaminants, hazardous materials or other materials or substances subject to regulation relating to
the protection of the environment that require Remediation based upon the condition at the Effective Date pursuant to any current federal, state or local laws or statutes, including the Environmental Laws. 
  
 “Affiliate” means, with respect to any
specified Person, any other Person directly or indirectly controlling or controlled by or under direct or indirect common control with such specified Person. For the purposes of this definition, “control” means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings correlative to the
foregoing, being understood and agreed that with respect to a corporation or other entity, control means direct or indirect ownership of more than fifty percent (50%) of the voting stock or securities of such corporation or other entity. 

 

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 “Agreement” has the meaning given to in the Preamble. 
  
 “Applicable Laws” means any applicable law,
order, ordinance, rule, regulation, permit, judgment or decree of any Governmental Body, including the common or civil law of any Governmental Body, including those relating to occupational safety and health, consumer product safety, environmental
laws, securities laws, zoning laws or regulations, employee benefits, employment and employee practices. 
  
 “Assignees” has the meaning given to in the Preamble. 
  
 “Assignees’ Business” means the oil and gas exploration and production business of the
Assignees that relates to the Properties, but shall not include the business of Assignor that relates to any properties or assets transferred prior to the date of this Agreement or any of the Non-Consent Properties until transferred to an
Assignee. 
  
 “Assignees’
Liabilities” means (without duplication): (i) any and all Liabilities that are expressly contemplated in this Agreement to be assumed by Assignees or any Assignee, including the Imbalances; (ii) all agreements and Liabilities of any
Assignee under this Agreement, subject to the applicable limitations and restrictions herein; (iii) all Liabilities (other than Taxes), arising out of or resulting from the ownership or operation of the Properties (including any Property that
becomes a Cured Non-Consent Property that is transferred to an Assignee), whenever arising, whether before, on, or after the Effective Date, including (a) accidents or injuries associated with the Wells, the casings, and all other leasehold
equipment in and on the Wells, gathering lines, pipelines, tanks and all other personal property and fixtures used on or in connection with the Properties (including any Property that becomes a Cured Non-Consent Property that is transferred to an
Assignee), (b) any and all Proceedings except for those Proceedings set forth on Schedule 4(b) and Assignor’s Retained Liabilities, (c) the condition of the Properties (including any Property that becomes a Cured Non-Consent Property
that is transferred to an Assignee) including all Adverse Environmental Conditions, and also including any such conditions arising out of or relating to any discharge, release, production, storage, treatment or any activities on or in the Properties
(including any Property that becomes a Cured Non-Consent Property that is transferred to an Assignee), or the migration or transportation from any other lands to the Properties (including any Property that becomes a Cured Non-Consent Property that
is transferred to an Assignee) (specifically excluding transportation and disposal by Sellers from the Properties to offsite locations prior to Closing), whether before, on, or after the Effective Date, of materials or substances that are at
present, or become in the future, subject to regulation under Applicable Laws, whether such Applicable Laws now 
  

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 exist or are hereafter enacted, (d) all Plugging and Abandonment obligations or liabilities.
Notwithstanding the foregoing, the Assignees’ Liabilities shall not include the Assignor’s Retained Liabilities, and (e) any duties and the obligations described in Sections 8 and 14 herein 
  
 “Assignees’ Suspense Accounts” has the
meaning given to in Section 8. 
  
 “Assignor” has the meaning given to in the Preamble. 
  
 “Assignor’s Business” means any business of Assignor, other than the Assignee’s Business. 
  
 “Assignor’s Actual Knowledge” means
the actual knowledge, without investigation, of B.A. Bill Berilgen (Executive Vice President of Assignor and President of Calpine Fuels Corporation), Charles F. Chambers (Vice President of Calpine Natural Gas L.P.), Art Klavan (Senior Vice President
Exploration and Development of Calpine Fuels Corporation), Roxy Blu (Director of Land of Calpine Natural Gas L.P.), Ed Seeman (Director Reservoir Engineering of Calpine Natural Gas L.P.), Denise Bednorz (Controller of Calpine Natural Gas L.P.), or
Bert Bates (Director of EH&S of Calpine Natural Gas L.P.). 
  
 “Assignor’s Retained Liabilities” has the meaning given it in Section 4. 
  
 “Burdens” means royalties (including both lessor royalties and nonparticipating royalty interests), overriding royalties,
production payments, and other similar obligations payable out of production. 
  
 “Casualty Loss” has the meaning given to it in Section 15. 
  
 “CGH” has the meaning given to it in the Preamble. 
  
 “Closing” has the meaning given to it in Section 12. 
  
 “Closing Date” has the meaning given to it
in Section 12. 
  
 “Conveyance” has the meaning given to in Section 3. 
  
 “Confidential Information” has the meaning given to in Section 10. 
  
 “CPR” has the meaning given to it in
Section 18. 
  
 “Cured Non-Consent
Properties” has the meaning given to in Section 5. 
  
 “Easements” means Assignor’s non-exclusive rights to the use and occupancy of the surface, including, without limitation, tenements, appurtenances, surface leases, Easements, permits, licenses,
franchises, servitudes and rights-of-way in any way appertaining, belonging, affixed or incidental to or used in connection with the ownership or operation of the Leases, whether recorded or unrecorded. 
  

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 “Effective Date” means 7:00 a.m., CDT on May 1, 2005. 
  
 “Employee Matters Agreement” means the
Employee and Employee Benefit Matters Agreement to be entered into by and among Assignor, Calpine Administrative Services Company, Inc. and Rosetta. 
  
 “Environmental Condition” means any condition existing prior to the Effective Date, and only to the extent in existence
on the Effective Date with respect to the air, land, soil, surface, subsurface strata, surface water, ground water, or sediments which causes a Property to be subject to remediation under, or not in compliance with an Environmental Law, a Lease or
Material Contract, but excluding the conditions associated with, or included in the definition of, Plugging and Abandonment. 
  
 “Environmental Law” means any existing Applicable Law relating to pollution or the protection of the environment, health
or safety including laws relating to air, water, land and the generation, storage, treatment, transportation, handling, release or disposal of waste materials including the Clean Air Act, the Federal Water Pollution Control Act, the Safe Drinking
Water Act, the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, the Resource Conservation and Recovery Act, the Hazardous and Solid Waste
Amendments Act of 1984, the Toxic Substance Control Act, and the Occupational Safety and Health Act, but shall not include any Applicable Law associated with Plugging and Abandonment. 
  
 “Excluded Properties” has the meaning given to in Section 2. 
  
 “Governmental Body” means any federal,
state, tribal, county, municipal, or other federal, state or local governmental authority or judicial or regulatory agency, board, body, department, bureau, commission, instrumentality, court, tribunal or quasi-governmental authority in any
jurisdiction (domestic or foreign) having jurisdiction over Assignor, the Properties or any Person who is a party to any of the transactions contemplated in this Agreement. 
  
 “Hydrocarbons” crude oil, natural gas, casinghead gas, condensate, distillate, sulphur,
natural gas liquids, plant products and other liquid or gaseous hydrocarbons (including carbon dioxide), and all other minerals of every kind and character which may be covered by or included in the Properties. 
  
 “Imbalance” means over and under imbalances with respect to
gas production or processing attributable to the Properties. 
  
 “Indemnified Claims” has the meaning given to in Section 11. 
  

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 “Indemnitee” has the meaning given to in Section 11. 

 
 “Indemnitor” has the meaning given to in
Section 11. 
  
 “Law
Firm” has the meaning given to in Section 11. 
  
 “Lawsuit” has the meaning given to in Section 11. 
  
 “Lease” has the meaning given it in Section 2. 
  
 “Liability” means, with respect to any Person, any liability or obligation of such Person
of any kind, character or description, whether known or unknown, absolute or contingent, accrued or unaccrued, disputed or undisputed, liquidated or unliquidated, secured or unsecured, joint or several, due or to become due, vested or unvested,
executory, determined, determinable or otherwise, and whether or not the same is require to be accrued on the financial statements of such Person. 
  
 “Lien” means any pledge, lien, mortgage, charge, encumbrance, security interest or other adverse claim. 
  
 “Loss” means all damages, losses,
Liabilities, obligations, payments, amounts paid in settlement, fines, penalties, costs (including reasonable fees and expenses of attorneys, accountants and other professional advisors, as well as experts, and other costs of investigation,
preparation and litigation in connection with any pleading, claim, demand or other action) of any kind or nature whatsoever, whether known or unknown, contingent or vested, or matured or unmatured. 
  
 “Net Revenue Interest” means the interests
of Assignor in and to all production of Hydrocarbons produced, saved, and sold from any Well, described in Exhibit C, after giving effect to all Burdens and Liens, other than Liens to be released in Schedule 1; but excluding that
percentage of the net revenue interest for those Wells set forth in column entitled “Non-Consent” on Exhibit C-1. 
  
 “Non-Consent Properties” has the meaning given it in Section 5. 
  
 “NORM” means naturally occurring
radioactive material. 
  
 “Oil and Gas
Interests” has the meaning given to in the Recitals. 
  
 “Party Representative” has the meaning given to in Section 11. 
  
 “Permitted Encumbrances” means: 
  

	 	(a)	Burdens if the cumulative effect thereof does not operate to reduce the Net Revenue Interest in a Well described in Exhibit C to less than the amount of the Net Revenue
Interest for such Well set forth 

  

 5 

 in Exhibit C or operate to increase Assignor’s Working Interest in a Well
described in Exhibit C to more than the Working Interest for such Well set forth in Exhibit C (unless there is a corresponding increase in the Net Revenue Interest); 
  

	 	(b)	Division orders and sales contracts terminable without penalty upon no more than thirty (30) days notice to the purchaser; 

  

	 	(c)	Required third-party consents to assignment and similar agreements with respect to which waivers or consents (i) are obtained from the appropriate parties or (ii) are routinely
obtained after transfer pursuant to transactions of this nature, including without limitation all preferential rights to purchase; 

  

	 	(d)	Materialman’s, mechanic’s, repairman’s, employee’s, contractor’s, operator’s, Tax and other similar Liens or charges arising in the ordinary course of
business for obligations (i) that are not delinquent or that will be paid and discharged in the ordinary course of business or (ii) if delinquent, that are being contested in good faith in the ordinary course of business; 

 

	 	(e)	All rights to consent by, required notices to, filings with, or other actions by Governmental Body in connection with the sale or conveyance of oil and gas leases or interests
therein if they are routinely obtained subsequent to the sale or conveyance; 

  

	 	(f)	Easements, rights-of-way, servitudes, permits, surface leases and other rights in respect of surface operations that do not materially interfere with oil and gas operations to be
conducted on any Well or Lease; 

  

	 	(g)	All (i) operating agreements, unit agreements, unit operating agreements, pooling agreements and pooling designations affecting the Properties that are contained in Assignor’s
files or (ii) compulsory or commissioner’s pooling or units; provided that the effect of any such documents will not reduce the Assignor’s interest with respect to oil and gas produced from any Well below the Net Revenue Interest set forth
in Exhibit C, or increase Assignor’s Working Interest in such Well to more than the Working Interest set forth in Exhibit C for such Well (unless there is a corresponding increase in the Net Revenue Interest);

  

	 	(h)	Conventional rights of reassignment prior to release or surrender requiring notice to the holders of the rights; 

  

	 	(i)	All rights reserved to or vested in any Governmental Body to control or regulate any of the Properties in any manner, and all Applicable Laws; 

  

 6 

	 	(j)	The terms and conditions of the Leases, and of all agreements that are contained in Assignor’s files or that are recorded in the public records of the appropriate jurisdiction
and which do not reduce the Assignor’s interest with respect to oil and gas produced from any Well to less than the amount of the Net Revenue Interest set forth in Exhibit C for such Well or increase the Assignor’s Working Interest
in such Well to more than the Working Interest set forth in Exhibit C for such Well (unless there is a corresponding increase in the Net Revenue Interest); 

  

	 	(k)	All other Liens, contracts, agreements, instruments, obligations, defects and irregularities affecting the Properties which individually or in the aggregate are not such as to
interfere materially with the operation, value or use of any of the Properties, could not reasonably be expected to prevent or delay Assignees from receiving the proceeds of production from any Well and which do not reduce the Assignor’s
interest with respect to Hydrocarbons produced from any Well below the Net Revenue Interest set forth in Exhibit C for such Well or increase the Assignor’s Working Interest in such Well to more than the Working Interest set forth in
Exhibit C for such Well (unless there is a corresponding increase in the Net Revenue Interest); and 

  

	 	(l)	All Liens as set forth on Schedule 1 which will be released or terminated concurrently with the transfers contemplated herein. 

  
 “Person” means any individual, corporation,
partnership, limited liability company, joint venture, association, joint stock company, trust, estate, unincorporated organization, other business entity or any Governmental Body. 
  
 “Plugging and Abandonment” means all plugging, replugging, abandonment, removal, disposal
or restoration associated with the Properties, including all plugging and abandonment, removal, surface restoration, site clearance and disposal of the wells, structures and personal property located on or associated with the Properties, the removal
or capping and burying of all associated flowlines, the restoration of the surface in accordance with Applicable Laws or the terms and conditions of the applicable Leases, site clearance, as required by Applicable Laws, and any disposal of related
waste materials, including NORM and asbestos, and shall include such Wells, structures, and personal property associated with any of the Properties, whether drilled or placed on a Lease prior to, at, or after the Effective Date. 
  
 “Preferential Right Properties” has the
meaning given it in Section 5. 
  
 “Privilege” has the meaning given to in Section 11. 
  

 7 

 “Proceeding” means any action, arbitration, audit, hearing,
investigation, litigation or suit (whether civil, criminal, administrative, judicial or investigative, whether formal or informal, whether public or private) commenced, brought, conducted or heard by or before, or otherwise involving, any
Governmental Body or arbitrator. 
  
 “Properties” has the meaning given it in Section 2. 
  
 “Purchase and Sale Agreement” means that certain that certain Purchase and Sale Agreement to be entered into by and among
Calpine Gas Holdings LLC, a Delaware limited liability company, Calpine Fuels Corporation, a California corporation, Assignor, and Rosetta. 
  
 “Records” means all of Assignor’s lease files, abstracts and title opinions, division order files, production
records, well files, accounting records (but not including general financial accounting or tax accounting records), and other similar files and records which directly relate to the Properties, including geological and geophysical data other than
those which Assignor considers to be proprietary or confidential to it or which Assignor cannot provide to Assignee without, in its opinion, breaching, or incurring a material risk of a breach of, agreements with other parties, or waiving, or
incurring a material risk of waiving, legal privilege. 
  
 “Remediation” or “Remediate” means affirmative actions or remedial work taken to remove or otherwise remedy an Environmental Condition, including any survey, site assessment, audit, investigation,
inspection, sampling, analysis, removal, excavation, pump and treat, cleanup, disposal, storage, handling or treatment, excluding those actions associated with Plugging and Abandonment. 
  
 “Rosetta” means Rosetta Resources Inc., a Delaware corporation. 
  
 “Rules” has the meaning given to it in
Section 18. 
  
 “Taxes”
means any and all fees (including, without limitation, documentation, license, recording, filing and registration fees), taxes (including without limitation, income, production, gross receipts, ad valorem, value added, windfall profit tax,
environmental tax, turnover, sales, use, personal property (tangible and intangible), stamp, leasing, lease, user, leasing use, excise, franchise, transfer, heating value, fuel, excess profits, occupational, interest equalization, lifting, oil, gas,
or mineral production or severance, and other taxes), levies, imposts, duties, charges or withholdings of any nature whatsoever, imposed by any Governmental Body or taxing authority thereof, domestic or foreign, together with any and all penalties,
fines, additions to tax and interest thereon, whether or not such tax shall be existing or hereafter adopted. 
  
 “Third Party” means a Person other than a Party or an Affiliate of a Party. 
  

 8 

 “Transition Services Agreement” means that certain Transition Services
Agreement to be entered into by and among Calpine Corporation, Calpine Fuels Corporation, a California corporation, Rosetta Resources Texas LP, a Delaware limited partnership, Rosetta Resources California, LLC, a Delaware limited liability company,
Rosetta Resources Offshore, LLC, a Delaware limited liability company, Rosetta Resources Rockies, LLC, a Delaware limited liability company, Rosetta and Calpine Natural Gas L.P., a Delaware limited partnership. 
  
 “Wells” has the meaning given it in
Section 2. 
  
 “Working
Interest” means with respect to the Wells set forth in Exhibit C, the interest of the Assignor therein, without regard to any valid Burdens or Liens which is burdened with the obligation to bear and pay costs of operations; but
excluding that percentage of the working interest for those Wells set forth in column entitled “Non-Consent” on Exhibit C-1. 
  
 Section 2. Assignment of Properties. 
  
 (a) Properties. Subject to the exceptions, reservations, terms and conditions herein contained (including, without limitation, the
retention and reservation by Assignor of the Excluded Properties), at the Closing Assignor shall transfer, assign, and deliver unto each Assignee, its successors and assignees, effective as of the Effective Date, all of Assignor’s rights,
titles, interests in the real and personal property, rights, titles, interests and estates described in this Section 2 (collectively called the “Properties”) that are specifically listed next to such Assignee’s name in
Exhibit A: 
  
 (i) the oil, gas and other
mineral leases and mineral fee, wellbore interests and other interests and estates and the lands and premises covered or affected thereby which are described on Exhibit B (collectively, called the “Leases” and individually
called a “Lease”) or which Leases are otherwise referred to herein, and specifically, including without limitation, the Net Revenue Interests and Working Interests which are set forth in Exhibit C; 
  
 (ii) (a) the properties pooled or unitized with any of the
Leases; (b) all unitization, communitization, pooling agreements and declarations of pooled units and the units created thereby (including, without limitation, all units created under orders, regulations, rules or other official acts of any
Governmental Body having jurisdiction and any units created solely among working interest owners pursuant to operating agreements or otherwise) which may affect all or any portion of the Leases including, without limitation, those units which may be
described or referred to on attached Exhibit B; (c) all operating agreements, production sales or other contracts, farmout agreements, farm-in agreements, area of mutual interest agreements, equipment leases and other agreements which relate
to the Leases or interests in the Leases described or referred to herein or on 
  

 9 

 attached Exhibit B or to the production, sale, purchase, exchange, processing, handling, storage,
transporting or marketing of the Hydrocarbons from or attributable to such Leases or interests, including without limitation the contracts described on Exhibit I; and (d) the Leases described on Exhibit B and covered by each Conveyance
although Assignor’s interests therein be incorrectly described or a description of a part or all of such Leases or Assignor’s interest therein be omitted; it being intended by Assignor to cover and affect hereby all interests which
Assignor owns in and to the Leases notwithstanding that the interests as set forth on Exhibit B may be limited to particular lands, specified depths or particular types of property interests; 
  
 (iii) all Hydrocarbons which may be produced and saved from
or attributable to the Leases and/or the lands pooled or unitized therewith, including all saleable oil in tanks and all rents, issues, profits, proceeds, products, revenues and other income from or attributable to the Leases and the lands pooled or
unitized therewith; 
  
 (iv) all tenements,
hereditaments, appurtenances and properties in anywise appertaining, belonging, affixed or incidental to the Leases, rights, titles, interests and estates described or referred to in paragraphs (a) and (b) above, including without limitation any and
all property, real or personal, situated upon, used or held for use in connection with the operating, working or development of any of such Leases and/or the lands pooled or unitized therewith including any and all oil wells, gas wells, injection
wells or other wells (collectively, such Wells are referred to herein as “Wells” and are more fully described on Exhibit C, but excluding percentage of the net revenue and working interest for those Wells in the column
entitled “Non-Consent”), facilities, buildings, structures, field separators, liquid extraction plants, plant compressors, pumps, pumping units, pipelines, sales and flow lines, gathering systems (including the gathering system described
on Exhibit C-2 for California purposes only), field gathering systems, salt water disposal facilities, tanks and tank batteries, fixtures, valves, fittings, machinery and parts, engines, boilers, meters, apparatus, equipment, appliances,
tools, implements, cables, wires, towers, casing tubing and rods, surface leases, rights-of-way, Easements, servitudes, licenses and other surface and subsurface rights, together with all additions, substitutions, replacements, accessions and
attachments to any and all of the foregoing properties; 
  
 (v) interests of every nature in and to (i) the Leases and other rights, titles, interests and estates described above and every part and parcel thereof, including such rights, titles, interests and estates as the
same may be enlarged by the discharge of any payments out of production or by the removal of any charges or Permitted Encumbrances to which any of the Leases and/or other rights, titles, interests and estates are subject, or otherwise; (ii) any and
all renewals and extensions of any of the Leases 
  

 10 

 and/or other rights, titles, interests or estates; and (iii) all contracts and agreements supplemental to
or amendatory of or in substitution for the contracts and agreements described or mentioned above; 
  
 (vi) all improvements, tools, parts and equipment used in connection with all or any part of the Property described in this or any other
clause of this Section; 
  
 (vii) to the extent
transferable without material restriction or payment of transfer or license fee, all Records, except for those expressly excluded by Assignor; and 
  
 (viii) Imbalances. 
  
 (b) Excluded Properties. The Properties do not include, and Assignor does hereby EXCEPT and EXCLUDE therefrom and does hereby
RETAIN and RESERVE unto Assignor, its successors and assigns: 
  
 (i) all (i) trade credits, accounts receivable, notes receivables and other receivables attributable to the interests of Assignor or its Affiliates in the Properties with respect to any period of time prior to the
Effective Date and (ii) deposits, cash, checks in process of collection, cash equivalents and funds attributable to the interests of Assignor or its Affiliates in the Properties with respect to any period of time prior to the Effective Date;

  
 (ii) all claims and causes of action of
Assignor or its Affiliates (i) arising from acts, omissions or events, or damage to or destruction of property occurring prior to the Effective Date to the extent related to any of Assignor’s Retained Liabilities or any of indemnification
obligations of Assignor under this Agreement or (ii) affecting any of the Excluded Properties; 
  
 (iii) subject to the provisions of Section 28, all Hydrocarbons produced from or attributable to the Properties with respect to all
periods prior to the Effective Date; 
  
 (iv) all
claims of Assignor or any of its Affiliates for refunds of or loss carry forwards with respect to (i) Taxes attributable to any period prior to the Closing Date; (ii) Taxes attributable to any of the Excluded Properties; or (iii) any Tax credits
accruing to the Properties prior to the Closing Date; 
  
 (v) all amounts due or payable to Assignor or its Affiliates as adjustments or refunds under any contracts affecting the Properties, with respect to any period prior to the Effective Date including, without limitation, amounts recoverable
from audits under operating agreements; 
  

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 (vi) all amounts due or payable to Assignor or its Affiliates as adjustments to insurance
premiums related to the Properties with respect to any period prior to the Effective Date; 
  
 (vii) all proceeds, benefits, income or revenues accruing (and any security or other deposits made) with respect to (i) the Properties
prior to the Effective Date; or (ii) any of the Excluded Properties; 
  
 (viii) all geological or geophysical information and data of Assignor or its Affiliates, whether proprietary to such Persons or licensed from Third Parties, but only to the extent that the transfer thereof is
prohibited by law or third-party agreement and the necessary consents to transfer are not obtained before Closing; 
  
 (ix) the non-exclusive right reserved unto the Assignor and its Affiliates to use the Easements; 
  
 (x) all the intellectual property of Assignor or its
Affiliates, including but not limited to computer software, patents, trade secrets, copyrights, names, marks, and logos related to the Assignor’s Business; 
  
 (xi) all rights of ingress, egress and surface use retained by Assignor or its Affiliates in connection with
its ownership and operation of CPN Pipeline Company and its assets; 
  
 (xii) originals of all files relating to Assignor’s Retained Liabilities, Proceedings set forth on Schedule 4(b) and copies (but not the originals) of all files described in Section 13); 

 
 (xiii) all of Assignor’s rights, titles, interests
and estates in and to (x) the percentage of Non-Consent Properties and related Wells described in Exhibit B-1 and C-1 and (y) to the extent the same are situated upon, used or held for use in connection with the Non-Consent Properties
and related Wells, the properties, rights, titles, interests and estates of Assignor’s described or referred to in Section 2(a)(i) through (viii) above, but only until such time as such Non-Consent Properties are transferred to
Assignees. 
  
 These excluded properties are collectively referred
to as the “Excluded Properties”. 
  
 Section 3.
Acceptance of Properties and Assumption of Continuing Rights and Obligations. At Closing, upon Assignees’ execution and delivery of the Conveyances from Assignor to the respective Assignees in the form of Exhibit G and the
Assignment of Contracts from Assignor to the respective Assignees in the form of Exhibit J (the Conveyance and the Assignment are collectively called the 
  

 12 

 “Conveyances” and individually a “Conveyance”), Assignees shall accept assignment of
the Properties pursuant to Section 2 above and shall severally assume all of the rights, benefits, duties, and obligations, as described in Section 4 hereof, with respect to the applicable Properties conveyed to each of them
respectively; provided, however, that the Assignor’s Retained Liabilities (as defined below) shall remain the sole responsibility of Assignor. 
  
 Section 4. Liabilities Relating to the Properties. Assignor and each Assignee hereby agree that upon Assignor’s execution of a Conveyance such
Assignee shall be deemed to have, and shall, severally assume all of the Liabilities associated with the Properties assigned to such Assignee as follows: 
  
 (a) Assumed Liabilities. Except to the extent of Assignor’s Retained Liabilities, effective on the Closing Date, all of the
Assignees shall jointly and severally assume and agree to fully and timely pay, perform, and discharge in accordance with their terms, all the Assignees’ Liabilities. 
  
 (b) Assignor’s Retained Liabilities. Assignor shall retain all the following Liabilities
relating to the Properties (the “Assignor’s Retained Liabilities”) and the Assignor’s Retained Liabilities shall remain the sole responsibility of and shall be retained, paid, performed and discharged solely by Assignor:

  
 (i) any Liability for additional payments of
severance taxes, royalties, overriding royalties or other similar Burdens relating to the sales to Assignor or any of its Affiliates of Hydrocarbons produced from the Properties prior to the Closing Date; 
  
 (ii) any Liabilities expressly retained by Assignor or any
of its Affiliates pursuant to the Employee Matters Agreement; 
  
 (iii) any Liability for Taxes of Assignor, or any of its Affiliates (i) attributable to all taxable periods ending on or before the Closing Date, (ii) for the portion of any taxable period that includes but does not
end on the Closing Date, or (iii) that may be imposed on any Assignee under section 1.1502-6 of the Treasury regulations promulgated under the Internal Revenue Code of 1986, as amended or any analogous provision of state or local law or regulation
as a result of the affiliation of such Assignee or its Affiliates with Assignor; and 
  
 (iv) any Liability arising out of any Proceeding set forth on Schedule 4(b). 
  
 (c) Release and Indemnification. 
  
 (i) Each Assignee hereby covenants not to sue and further
releases the Assignor and the Assignor’s Affiliates, directors, officers, employees, stockholders, partners, and agents from and waives on behalf 
  

 13 

 of such Assignee, and on behalf of its successors and assigns, all rights under this Agreement or any
Exhibits related thereto to pursue and to recover any and all Losses, except for any Losses arising from or relating to the special warranty of title contained in the Conveyance as set forth in Exhibit C, from Assignor and Assignor’s
Affiliates, directors, officers, employees, stockholders, partners and agents, including Losses arising out of or related to Assignor’s Retained Liabilities. 
  
 (ii) Assignor hereby covenants not to sue and further releases the Assignees and their Affiliates,
directors, officers, employees, stockholders, partners, and agents from and waives on its behalf, and on behalf of its successors and assigns, all rights under this Agreement or any Exhibits related thereto to pursue and to recover any and all
Losses, including Losses arising out of or related to Assignees’ Liabilities. 
  
 (d) Acknowledgement. Assignor and each Assignee acknowledge that they have been advised by their legal counsel and they are
familiar with the provisions of California Section 1542, which provides as follows: 
  
 “A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY
AFFECTED HIS OR HER SETTLEMENT WITH DEBTOR.” 
  
 EACH
ASSIGNEE BEING AWARE OF SAID CODE SECTION, HEREBY EXPRESSLY WAIVES ANY RIGHT IT MAY HAVE THEREUNDER AS WELL AS UNDER ANY OTHER STATUTE OR COMMON LAW PRINCIPLE OF SIMILAR EFFECT. 
  

			
	 Assignees’ Initials
	  	Assignor’s Initials
		
	 _______________
	  	 _______________

		
	 _______________
	  	 
		
	 _______________
	  	 
		
	 _______________
	  	 

  
 (e)
Limitations of Warranties. Notwithstanding anything to the contrary herein, each Assignee understands that the Properties shall be conveyed to and shall be held by Assignees without recourse, covenant, or warranty of any kind, express,
implied, or statutory from Assignor, and that Assignor shall not provide any warranty to any Assignee with respect to the Properties except to the extent of (i) Assignor’s Retained Liabilities and (ii) that special warranty of title Conveyance
as set forth in Exhibit G, subject to the Permitted Encumbrances. 
  

 14 

 WITHOUT LIMITATION OF THE GENERALITY OF THE IMMEDIATELY PRECEDING SENTENCE, EXCEPT TO THE EXTENT OF
ASSIGNOR’S RETAINED LIABILITIES, THE PROPERTIES SHALL BE CONVEYED AS-IS, WHERE-IS AND WITH ALL FAULTS AND ASSIGNOR EXPRESSLY DISCLAIMS AND NEGATES ANY IMPLIED OR EXPRESS WARRANTY OF (A) MERCHANTABILITY, (B) FITNESS FOR A PARTICULAR PURPOSE, (C)
CONFORMITY TO MODELS OR SAMPLES OF MATERIALS AND (D) FREEDOM FROM REDHIBITORY VICES OR DEFECTS. ASSIGNOR ALSO EXPRESSLY DISCLAIMS AND NEGATES ANY IMPLIED OR EXPRESS WARRANTY AT COMMON LAW, BY STATUTE OR OTHERWISE RELATING TO THE ACCURACY OF ANY OF
THE INFORMATION FURNISHED WITH RESPECT TO THE EXISTENCE OR EXTENT OF RESERVES OR THE VALUE OF THE PROPERTIES BASED THEREON OR THE CONDITION OR STATE OF REPAIR OF ANY OF THE PROPERTIES. THIS DISCLAIMER AND DENIAL OF WARRANTY ALSO EXTENDS TO THE
EXPRESS OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE PRICES ANY ASSIGNEE IS OR WILL BE ENTITLED TO RECEIVE FROM PRODUCTION OF HYDROCARBONS FROM THE PROPERTIES, IT BEING UNDERSTOOD THAT ALL RESERVE, PRICE AND VALUE ESTIMATES UPON WHICH ANY
ASSIGNEE HAS RELIED OR IS RELYING HAVE BEEN DERIVED BY THE INDIVIDUAL EVALUATION OF SUCH ASSIGNEE. EACH ASSIGNEE HEREIN WAIVES ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACCURACY, COMPLETENESS OR MATERIALITY OF THE
INFORMATION, REPORTS, PROJECTIONS, MATERIALS, RECORDS, AND DATA NOW, HERETOFORE, OR HEREAFTER FURNISHED OR MADE AVAILABLE TO SUCH ASSIGNEE IN CONNECTION WITH THE PROPERTIES OR THIS AGREEMENT (INCLUDING ANY DESCRIPTION OF THE PROPERTIES, WORKING
INTERESTS OR NET REVENUE INTERESTS, QUALITY OR QUANTITY OF HYDROCARBON RESERVES (IF ANY), PRODUCTION RATES, RECOMPLETION OPPORTUNITIES, DECLINE RATES, PRICING ASSUMPTIONS, ABILITY OR POTENTIAL FOR PRODUCTION OF HYDROCARBONS FROM THE LEASES,
ENVIRONMENTAL CONDITION OF THE PROPERTIES OR ANY OTHER MATTERS CONTAINED IN ANY OTHER MATERIAL FURNISHED OR MADE AVAILABLE TO SUCH ASSIGNEE BY ASSIGNOR OR BY ITS AGENTS OR REPRESENTATIVES). ANY AND ALL SUCH INFORMATION, REPORTS, PROJECTIONS,
MATERIALS, RECORDS, AND DATA NOW, HERETOFORE OR HEREAFTER FURNISHED BY ASSIGNOR IS PROVIDED AS A CONVENIENCE ONLY AND ANY RELIANCE ON OR USE OF SAME IS AT EACH ASSIGNEE’S SOLE RISK. WITH RESPECT TO THE EASEMENTS, ASSIGNOR EXPRESSLY DISCLAIMS,
AND EACH ASSIGNEE HEREBY WAIVES (BUT WITHOUT PREJUDICE EACH ASSIGNEE’S RIGHTS TO ENFORCE ANY SPECIAL WARRANTY OF TITLE WITH RESPECT THERETO TO BE CONTAINED IN EACH CONVEYANCE), ANY WARRANTIES AND REPRESENTATIONS THAT 
  

 15 

 ASSIGNOR OWNS THE EASEMENTS, ASSIGNOR DISCLAIMS ALL WARRANTIES OR REPRESENTATIONS THAT SUCH EASEMENTS ARE
IN FORCE AND EFFECT; THAT THEY MAY BE ASSIGNED; THAT THEY ARE CONTIGUOUS; THAT THE PIPELINES LIE WITHIN THE EASEMENTS, OR THAT THEY GRANT THE RIGHT TO LAY, MAINTAIN, REPAIR, REPLACE, OPERATE, CONSTRUCT, OR REMOVE ANY PIPELINES. If necessary,
Assignees shall secure their own rights and permits to operate and maintain any pipelines or Facilities comprising a portion of the Properties on the land of others at its own expense. Subject to the provisions of Section 5, if any consents
or approvals of third parties, including any Governmental Body, are required to assign the surface leases, Easements, rights-of-way, permits, or other agreements with respect to the pipelines or facilities and are not secured prior to transfer,
Assignees shall secure any necessary consents to assign and approvals at its own expense; provided, however, that Assignor shall provide such assistance to Assignees to secure the consents and approvals as may reasonably be required. THERE ARE NO
WARRANTIES THAT EXTEND BEYOND THE FACE OF THIS AGREEMENT. EACH ASSIGNEE ACKNOWLEDGES THAT THIS WAIVER IS CONSPICUOUS. 
  
 Section 5. Preferential Rights and Third Party Consents. 
  

(a) In connection with the transfers of certain of the Properties to the Assignees, the Parties have requested (in accordance with the
documents creating such rights and/or requirements) all consents to assignment (or waivers to such consents) that, to the Assignor’s Actual Knowledge, are necessary in order for Assignor to consummate the transfer of the Properties to the
Assignees pursuant to this Agreement. The Parties agree to use reasonable commercial efforts to obtain such waivers and consents (but the Parties shall have no obligation to assure that such waivers or consents are obtained). On or before the
transfer, the Parties will, or will cause the appropriate entity to, give notice to all Persons who hold preferential rights to purchase any of the Properties in accordance with the documents creating such rights and/or requirements. 
  
 (b) Notwithstanding that the Parties may not be able to
obtain waivers of the preferential rights to purchase or consents to assignment which are necessary in order to convey the Properties to the Assignees, the Parties shall proceed with the transactions contemplated herein. At Closing in accordance
with this Agreement, Assignor will (i) convey to the Assignees the Properties, including any Properties that are subject to preferential rights to purchase (“Preferential Right Properties”), and (ii) retain all Properties that are
subject to consents that are not received before the Closing described on Exhibit B-1 and any related Wells described on set forth Exhibit C-1 (“Non-Consent Properties”). The Preferential Right Properties will
be transferred to the Assignees subject to the applicable preferential rights to purchase. 
  
 (c) From and after the Closing Date, Assignor bvgshall continue to hold title to the Non-Consent Properties subject to the provision of
this Section 5. 
  

 16 

 Assignees, directly or indirectly through one of their Affiliates (for the purposes of this Section
5, Assignees shall also include such Affiliates following the Closing Date) shall manage, market and operate the Non-Consent Properties pursuant to the applicable provisions of the Transition Services Agreement. Assignees, with the cooperation
of Assignor, shall continue for a six (6) month period immediately following the Closing Date to use reasonable commercial efforts to obtain any waivers of the preferential rights relating to the Preferential Right Properties and consents to the
assignment of the Non-Consent Properties, provided that Assignor shall have no obligation to pay any amount to obtain such consent or waivers. 
  
 (d) At Closing, with respect to any of the Wells or units that constitute Non-Consent Properties which are less than the entire interest
of Assignor being conveyed, the Parties shall execute a joint operating agreement in the form attached as Exhibit K (“JOA”), if no such other joint operating agreement is applicable thereto, covering such Non-Consent Property
and the Property from which such Non-Consent Property is a part of. 
  
 (e) If during the six (6) month period after the Closing Date, Assignees are able to obtain consents to transfer any Non-Consent Properties (such Properties are referred to herein as the “Cured Non-Consent
Properties”), then such Properties shall be transferred to Assignees in accordance with the provisions of this Section 5. Promptly, after obtaining all required consents or releases, at the end of each month during such six (6) month
period after the Closing Date, Assignor shall transfer or cause to be transferred to Assignees, and Assignees shall accept from the transferring party, any Cured Non-Consent Properties for which the consent to assign was obtained during the
preceding month. The transfer of the Cured Non-Consent Properties shall be on the same terms and subject to the provisions of this Agreement and the Conveyances made under this Agreement on the Closing Date. Any Non-Consent Properties for which
consents have not been obtained during the six (6) month period after the Closing Date shall remain the property of Assignor and shall no longer be subject to this Agreement. 
  
 If any rights to purchase any of Preferential Right Properties are exercised and consummated following the
date hereof, Assignees shall be entitled to retain all of the amounts paid therefor and shall have all obligations and Liability relating to the transfer thereof to the purchasing party. 
  
 Section 6. Governmental Bonds. Attached hereto as Exhibit F is a list of all bonds placed by Assignor and
Calpine Natural Gas L.P. with a Governmental Body for the ownership and operation of the Properties. On or prior to the Closing Date, each Assignee shall deliver to Assignor evidence reasonably satisfactory to Assignor that such Assignee has posted
bonds or other security with each applicable Governmental Body to own and, where appropriate, operate the Properties in accordance with the requirements of such Governmental Body. Assignees shall cooperate with Assignor and use reasonable commercial
efforts to obtain the release of any bonds placed by Assignor, so Assignor is 
  

 17 

 able to recover any and all collateral or other pledges which secured such bond. Where such bonds or other security are
placed in the name of Calpine Natural Gas L.P. and will not be replaced at Closing, Assignees agree that Assignor shall be paid in the aggregate amount of such bonds or other security to the extent that Assignor or Calpine Natural Gas L.P. has paid
any amounts in connection therewith and each Assignee shall severally indemnify, defend and hold harmless Assignor, and Assignor’s Affiliates for any Liabilities assessed against any bonds or other security listed on Exhibit F or for the
taking or conversion thereof, that occurs on or after the Closing Date with respect to the bonds on the Properties transferred to it. 
  
 Section 7. Presence of Wastes, NORM, Hazardous Substances and Asbestos. EACH ASSIGNEE ACKNOWLEDGES THAT THE PROPERTIES HAVE BEEN USED TO EXPLORE
FOR, DEVELOP AND PRODUCE HYDROCARBONS, AND THAT SPILLS OF WASTES, CRUDE OIL, PRODUCED WATER, HAZARDOUS SUBSTANCES AND OTHER MATERIALS MAY HAVE OCCURRED THEREON. ADDITIONALLY, THE PROPERTIES, INCLUDING PRODUCTION EQUIPMENT, MAY CONTAIN ASBESTOS,
HAZARDOUS SUBSTANCES OR NORM. NORM MAY AFFIX OR ATTACH ITSELF TO THE INSIDE OF WELLS, MATERIALS AND EQUIPMENT AS SCALE OR IN OTHER FORMS, AND NORM-CONTAINING MATERIAL MAY HAVE BEEN BURIED OR OTHERWISE DISPOSED OF ON THE PROPERTIES. A HEALTH HAZARD
MAY EXIST IN CONNECTION WITH THE PROPERTIES BY REASON THEREOF. SPECIAL PROCEDURES MAY BE REQUIRED FOR REMEDIATION, REMOVING, TRANSPORTING AND DISPOSING OF ASBESTOS, NORM, HAZARDOUS SUBSTANCES AND OTHER MATERIALS FROM THE PROPERTY. With respect to
the Properties transferred to Assignees hereunder on the Closing Date and all Properties that may be subsequently transferred to Assignees pursuant to Section 5, each Assignee assumes all Liability for the assessment, Remediation, removal,
transportation and disposal of these materials and associated activities in accordance with the Applicable Law with respect to the Properties transferred to it. Each Assignee understands that the Properties are being conveyed to them on an “as
is, where is” basis, and each Assignee waives all claims against Assignor for the condition of the Properties, including Adverse Environmental Condition relating to the Properties. The obligations of the Assignees under this Section 7
shall survive the Closing and delivery of the Conveyances. 
  
 Section 8. Suspense Funds Held by Assignor. ASSIGNOR HAS PREVIOUSLY PROVIDED TO ASSIGNEES A LIST OF ALL PROCEEDS FROM PRODUCTION ATTRIBUTABLE TO THE PROPERTIES THAT ARE CURRENTLY HELD IN SUSPENSE WHICH ARE OWING TO THIRD PARTY OWNERS
OF ROYALTY, OVERRIDING ROYALTY, WORKING OR OTHER INTERESTS IN RESPECT TO PAST PRODUCTION OF OIL, GAS OR OTHER HYDROCARBONS ATTRIBUTABLE TO THE PROPERTIES, AS OF THE DATE HEREOF, ASSIGNEES SHALL HAVE CONTROL OF ALL SUCH SUSPENDED PROCEEDS
(“ASSIGNEES’ SUSPENSE ACCOUNTS”). AFTER THE DATE HEREOF, ASSIGNEES SHALL ADMINISTER ALL SUCH ACCOUNTS AND ASSUME ALL PAYMENT OBLIGATIONS RELATING TO THE SUSPENSE FUNDS IN ACCORDANCE WITH ALL APPLICABLE LAWS, RULES AND
REGULATIONS, AND SHALL BE LIABLE FOR THE PAYMENT THEREOF TO THE PROPER PARTIES. The obligations of the Assignees under this Section shall be “Assignees’ Liabilities”. 
  

 18 

 Section 9. Further Assurances. Assignor hereby covenant and agree with each Assignee, its
successors and assigns, that from time to time after the delivery of this Agreement, at such Assignee’s request and without further consideration, Assignor will execute, acknowledge and deliver to such Assignee such other and further
instruments of transfer, assignment, and conveyance and all such notices, releases, acquittance, and other documents and will do or cause to be done all and every such further act as may be necessary to transfer, assign and convey to and vest in
such Assignee all and singular the Properties hereby contributed, conveyed, transferred, assigned, and delivered to such Assignee or intended so to be. Assignees hereby covenant and agree with Assignor, its successors and assigns, that if any
Excluded Property, including any Non-Consent Property, was inadvertently conveyed to any Assignee, at Assignor’s request and without further consideration, such Assignee will execute, acknowledge and deliver to Assignor an instrument of
transfer, assignment, and conveyance and all such notices, releases, acquittance, and other documents and will do or cause to be done all and every further acts as may be necessary to transfer, assign and convey to and vest in Assignor the Excluded
Property including any Non-Consent Property. 
  
 Section 10.
Confidentiality. The Parties shall hold and shall each cause their respective Affiliates, officers, employees, agents, consultants and advisors to hold, in strict confidence and not to disclose or release without the prior written consent of
the other Party, any and all Confidential Information (as defined herein); provided, that the Parties may disclose, or may permit disclosure of, Confidential Information (i) to their respective auditors, attorneys, financial advisors, bankers and
other appropriate consultants and advisors who have a need to know such information or (ii) to the extent any of the Parties is compelled to disclose any such Confidential Information by judicial or administrative process or, in the opinion of legal
counsel, by other requirements of law. Notwithstanding the foregoing, if any demand or request for disclosure of Confidential Information is made pursuant to clause (ii) above, each of the Parties shall promptly notify the other of the existence of
such request or demand and shall provide the other a reasonable opportunity to seek an appropriate protective order or other remedy, which the Parties will cooperate in seeking to obtain. If such appropriate protective order or other remedy is not
obtained, the Party whose Confidential Information is required to be disclosed shall furnish, or shall cause the other Parties to furnish, or cause to be furnished, only that portion of the Confidential Information that is legally required to be
disclosed. As used in this Section 10, “Confidential Information” means all proprietary, technical or operational information, data or material of one Party that, prior to or following the date of this Agreement, has been
disclosed by one Party to another, in written, oral (including by recording), electronic, or visual form to, or otherwise has come into the possession of, the other, including pursuant to the access provisions of this Agreement (except to the extent
that such Confidential Information can be shown to have been (a) in the public domain through no fault of such Party or (b) later lawfully acquired from other sources by the Party to which it was furnished; provided, however, in the case of (b)
that, to the knowledge of such Party, such sources did not 
  

 19 

 provide such Information in breach of any confidentiality obligations). Notwithstanding anything to the contrary set
forth herein, the Parties shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but no less than a reasonable degree of care) as they take to preserve
confidentiality for their own similar Information. 
  
 Section 11.
Preservation of Legal Privileges. The Parties recognize that the members of their respective groups possess and will possess information and advice that has been previously developed but is legally protected from disclosure under legal
privileges, such as the attorney-client privilege or work product exemption and other concepts of legal protection (“Privilege”). Each Party recognizes that they shall be jointly entitled to the Privilege with respect to such
privileged information and that each shall be entitled to maintain and use for its own benefit all such information and advice, but both Parties shall ensure that such information is maintained so as to protect the Privileges with respect to the
other Party’s interest. To that end no Party will knowingly waive or compromise any Privilege associated with such information and advice without the consent of the other Parties. If privileged information is required to be disclosed to any
arbitrator or mediator in connection with a dispute between the Parties, such disclosure shall not be deemed a waiver of Privilege with respect to such information, and any Party receiving it in connection with a proceeding shall be informed of its
nature and shall be required to safeguard and protect it. 
  
 Without limitation of the rights of the Parties under Section 4, the provisions of Exhibit H shall apply to any claims (“Indemnified Claims”), whether presently or hereafter asserted, for which any Party or
Parties (collectively, the “Indemnitor”) is obligated to indemnify another Party or Parties (collectively, the “Indemnitee”). For purposes of the application of the provisions of Exhibit H to the Indemnified
Claims, (a) Claims as used therein, shall mean Indemnified Claims as defined in this Section 11, (b) “Indemnitor” as used therein, shall mean Indemnitor as defined in this Section 11, (c) “Indemnitee”,
as used therein, shall mean Indemnitee as defined in this Section 11, (d) “Lawsuit” as used therein shall mean the Proceeding in which the Indemnified Claims are asserted, (e) “Party Representative” as used
therein shall mean John King as to Assignor and B. A. (Bill) Berligen as to each Assignee, or such other person as either Party shall designate from time to time as its representative by written notice to the other Party, (e) “Effective
Date,” as used therein, shall mean the Effective Date of this Agreement and (f) “Law firm” shall mean the reputable attorneys selected and retained by Indemnitor to defend the Indemnified Claims. If a lawsuit or other
Proceeding is hereafter filed or instituted in which an Indemnified Claim is asserted against a Party, Indemnitor and Indemnitee shall, at the request of either, promptly execute a separate Joint Defense Agreement, which is substantially in the form
of Exhibit H, to memorialize the application of this Section to such Indemnified Claim and lawsuit. 
  
 Section 12. Closing. 
  
 (a) The Closing The closing and transfer of Properties pursuant to this Agreement (“Closing”) shall be held at the
offices of Thompson & Knight LLP, 333 Clay St., Suite 3300, Houston, Texas at 10:00 a.m. on July 7, 2005 or such date as may be mutually agreed by the Parties (the “Closing Date”). 
  

 20 

 (b) Closing Deliveries. At Closing the following events shall occur, each event
under the control of a Party hereto being a condition precedent to the events under the control of the other Party, and each event being deemed to have occurred simultaneously with the other events:Assignor shall execute, acknowledge, and deliver to
each Assignee, and each Assignee shall accept by execution thereof, the Conveyance and any necessary state and Federal transfer and related forms as required or necessary to complete the transactions contemplated hereby; and 
  
 (c) Turn Over Possession. Assignor shall, to the
extent Assignor can do so, turn over possession of the Properties conveyed at Closing. 
  
 Section 13. Transfer of Records. Within thirty (30) days after the Effective Date, Assignor shall deliver to Assignees, at Assignees’ address, or at such other place as any of same may be kept, the
originals of all Records except that Assignor may retain (a) the originals of all Records which are related to the Excluded Properties, in which case such Assignor shall deliver duplicate copies of any such retained originals to Assignee; and (b)
the originals of all accounting Records, in which case such Assignor shall deliver duplicate copies of any such retained originals which relate to the Properties to Assignee; provided that Assignor shall deliver the originals of all Records relating
to Cured Non-Consent Properties when such properties are transferred to Buyer in accordance with Section 5. For a period of four (4) years after the Effective Date, Assignees will retain the Records delivered to them pursuant hereto and will
make such Records available to Assignor upon reasonable notice at Assignees’ headquarters at reasonable times and during office hours. Without limiting the generality of the foregoing, Assignees shall retain, until the applicable statutes of
limitations (including all extensions) have expired, copies of all Tax returns, supporting workpapers, and other books and records or information which may be relevant to such returns for all Tax periods or portions thereof ending before or
including the Effective Date, and shall not destroy or dispose of such records or information without first providing the other party with a reasonable opportunity to review and copy the same. Assignees shall notify Assignor in writing within
thirty (30) days of the sale to a Third Party of all or any part of the Properties which involves the transfer of any of the Records of the name and address of the assignee(s) in any such sale. Assignor shall require as part of any such sales
transaction that such Third Party assume the obligations imposed on Assignor in this Section 13. 
  
 Section 14. Laws and Regulations. From and after Closing, each Assignee shall assume all of the Liabilities with regard to Plugging and Abandonment
affecting the Properties transferred to it, and shall severally indemnify and hold harmless Assignor with respect to any and all of those Liabilities. 
  

 21 

 Section 15. Casualty Loss. If, after the Effective Date and prior to the conveyance of any Cured
Non-Consent Properties any material portion of the Cured Non-Consent Properties transferred to the Assignees shall be substantially damaged or destroyed by fire or other casualty, or if any material portion of such Properties shall be taken by
condemnation or the exercise of eminent domain (in either case, a “Casualty Loss”), Assignees shall be entitled to any applicable insurance proceeds, claims against third parties, or condemnation awards. 
  
 Section 16. Insurance. After the Effective Date and prior to the
Closing Date, and subject to Section 5(e), from the Closing Date until such time as the Non-Consent Properties become Cured Non-Consent Properties and are conveyed to an Assignee, Assignor will maintain Comprehensive or Commercial General
Liability Insurance with respect to the such Properties, and will pay or cause to be paid all costs and expenses due to be paid in connection therewith. Such insurance shall cover bodily injuries (including death) sustained on or in connection with
the Properties. At Closing, or at such time thereafter the Cured Non-Consent Properties are conveyed, Assignor shall assign to the extent allowable by the insurance policy, any coverage or insurance right relating to Properties which arose after the
Effective Date but before the Closing Date, or the date when the Cured Non-Consent Properties are conveyed, or any proceeds from insurance relating to the same. 
  

Section 17. Assignees’ Risk of Loss. Except as specifically provided in Section 15 with respect to any Casualty Loss, from and after
the Effective Date Assignees shall assume all risk of loss with respect to any change in the condition of any Property that becomes a Cured Non-Consent Property transferred to the Assignees, retroactive to the Effective Date, and Assignor shall have
no liability, as operator of such Cured Non-Consent Property or otherwise, for losses or damages sustained with respect to the condition of such Properties or their ability to produce Hydrocarbons. 
  
 Section 18. Arbitration. The Parties expressly agree that, except as
elsewhere provided in this Agreement, any and all disputes or claims by any Party arising from or related to this Agreement that cannot be amicably settled shall be determined solely and exclusively by arbitration in accordance with the CPR
Institute for Dispute Resolution (“CPR”) Rules for Non-Administered Arbitration (“Rules”) or any successor thereof when not in conflict with such Rules. 
  
 Disputes arising hereunder that are not resolved within five (5) business days shall be referred to each Party
Representative (or other designated senior representatives of the Parties). If the Party Representatives are unable to solve the dispute within twenty (20) days after initial referral, the dispute may be submitted by request of either Party to
binding arbitration. Arbitration shall take place at an appointed time and place in Houston, Texas. Assignor and Assignees shall each select one impartial arbitrator, and the two arbitrators so designated shall select a third impartial arbitrator.
If any Party shall fail to designate an arbitrator within fourteen (14) days after arbitration is requested, or if the two arbitrators shall fail to select a third arbitrator within thirty (30) days after arbitration is requested, then an arbitrator
shall be selected by CPR. Judgment upon an award of the majority of the arbitrators shall be binding, it being understood and agreed 
  

 22 

 that in no event may the arbitrators award punitive damages. Discovery shall be made pursuant to the Rules and completed
within one hundred and twenty (120) days of selection of the third arbitrator. Final hearing on the matter shall be had within one hundred sixty-five (165) days of the selection of the third arbitrator and a final decision (which may include the
award of attorney’s fees and costs) with a written opinion stating the reasons therefor shall be rendered within two hundred ten (210) days of said date. Should any time deadlines in this Section 18 conflict with those set forth in the
Rules, the deadlines in Section 18 shall take precedence, to the greatest extent possible. The decision of the arbitrators, or the majority thereof, made in writing shall be final and binding upon the parties hereto as to the questions
submitted, shall be enforceable against any Party in any court of competent jurisdiction, and Assignees and Assignor will abide by and comply with such decision. The expenses of arbitration, including reasonable compensation to the arbitrators,
shall be borne equally by the Parties hereto. 
  
 The arbitration
process shall be kept confidential and such conduct, statements, promises, offers, views and opinions shall not be discoverable or admissible in any legal proceeding for any purpose, except to the extent reasonably necessary to enforce the final
decision of the arbitrators. 
  
 Section 19. Notice. All
notices required or permitted under this Agreement shall be in writing and shall be delivered personally or by certified mail, postage prepaid and return receipt requested or by telecopier as follows: 
  

					
	Assignor:	  	Calpine Corporation
	 	  	50 West San Fernando, Suite 500
	 	  	San Jose, California 95113
	 	  	Attention:	 	John King, Senior Vice President-International
	 	  	Telephone:	 	(408) 794-2608
	 	  	Telecopier:	 	(408) 294-1740
		
	 	  	CPN Pipeline Company
	 	  	50 West San Fernando, Suite 500
	 	  	San Jose, California 95113
	 	  	Attention:	 	General Counsel
	 	  	Telephone:	 	(408) 995-5115
	 	  	Telecopier:	 	(408) 975-4648
	
	with a copy (which shall not constitute notice) to:
		
	 	  	Calpine Corporation
	 	  	50 West San Fernando, Suite 500
	 	  	San Jose, California 95113
	 	  	Attention:	 	Lisa Bodensteiner and Nancy Murray
	 	  	Telephone:	 	(408) 792-1120
	 	  	Telecopier:	 	(408) 995-0505

  
  

 23 

					
	 	  	Calpine Corporation
	 	  	Attention:	 	Nanette Crawford
	 	  	717 Texas, Suite 1000
	 	  	Houston, Texas 77002
	 	  	Telephone:	 	(713) 830-2085
	 	  	Telecopier:	 	(713) 830-8751
		
	Assignee:	  	c/o Rosetta Resources Inc.
	 	  	717 Texas, Suite 2800
	 	  	Houston, Texas 77002
	 	  	Attention:	 	B.A. (Bill) Berilgen
	 	  	Telephone:	 	(713) 335-2400
	 	  	Telecopier:	 	(713) 651-3056
	
	with a copy (which shall not constitute notice) to:
		
	 	  	Thompson & Knight LLP
	 	  	333 Clay St., Suite 3300
	 	  	Houston, Texas 77002
	 	  	Attention:	 	Dallas Parker, Esq.
	 	  	Telephone:	 	(713) 951-5800
	 	  	Telecopier:	 	(832) 397-8110

  
 or to such other place within the
United State of America as a Party may designate for itself as to itself by written notice to the other. All notices given by personal delivery or mail shall be effective on the date of actual receipt at the appropriate address. Notices given by
telecopier shall be effective upon actual receipt if received during recipient’s normal business hours or at the beginning of the next Business Day after receipt if received after the recipient’s normal business hours. All notices by
telecopier shall be confirmed in writing on the day of transmission by either mailing by postage prepaid certified mail with return receipt requested, or by personal delivery. 
  
 Section 20. Governing Law. This Agreement and the obligations of the Parties hereunder will be governed by and
construed in accordance with the laws of the State of Texas, without giving effect to any choice of law principles thereof. 
  
 Section 21. Entire Agreement. This Agreement together with the Exhibits and Schedules hereto and the certificates, documents, instruments and
writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the Parties in respect of its subject matters and supersedes all prior understandings, agreements, or representations by or among the Parties, written
or oral, to the extent they relate in any way to the subject matter hereof or the transactions contemplated herein. There are no Third Party beneficiaries having rights under or with respect to this Agreement. 
  
 Section 22. Assignment. This Agreement shall be binding upon and shall
inure to the benefit of the Parties and their respective permitted successors and assigns. Notwithstanding the preceding sentence, neither party shall assign this Agreement or its rights hereunder without the other party’s prior written
consent, which shall not be unreasonably withheld. 
  

 24 

 Section 23. Amendment; Waiver. No amendment, modification, replacement, termination or
cancellation of any provision of this Agreement will be valid, unless the same will be in writing and signed by Assignor and each Assignee. No waiver by any Party of any default, misrepresentation or breach of warranty or covenant hereunder, whether
intentional or not, may be deemed to extend to any prior or subsequent default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent occurrence. 
  
 Section 24. Severability. The provisions of this Agreement will be
deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided, however, that if any provision of this Agreement, as applied to any Party or to any
circumstance, is adjudged by a court of competent jurisdiction, arbitrator, or mediator not to be enforceable in accordance with its terms, the Parties agree that the court of competent jurisdiction, arbitrator, or mediator making such determination
will have the power to modify the provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced.

  
 Section 25. Headings. The article and section headings
contained in this Agreement are inserted for convenience only and will not affect in any way the meaning or interpretation of this Agreement. 
  
 Section 26. Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of
intent or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party because of the authorship of any provision of this Agreement.
Any reference to any Applicable Law will be deemed also to refer to such law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words “include,” “includes” and
“including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be construed to include the
plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereunder” and words of similar import refer to this Agreement as a whole and not to any
particular subdivision unless expressly so limited. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. References herein to any Section or Article shall be references to a Section or
Article of this Agreement unless the context clearly requires otherwise. 
  
 Section 27. Counterparts. This Agreement may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. No one
counterpart need be signed by all parties. 
  

 25 

 Section 28. Imbalances. The Properties acquired by Assignees at Closing will be transferred
specifically subject to Imbalances. Assignees shall bear and assume all obligations with respect to any overproduction accounts or Liabilities associated with the Properties and shall receive the benefit of and being credited with any
underproduction account or credit existing as of the Effective Date with respect to the Properties. To the Parties’ knowledge all Imbalances existing as of the dates set forth in such Schedule with respect to any of the Properties, other than
those that do not exceed $5,000 individually or relate to transactions occurring less than 30 days before the Effective Date are set forth on Schedule 28. 
  
 Section 29. Survival. The covenants, waivers, indemnities and other obligations of the Parties herein to be
performed, or which arise, after the Closing contained in this Agreement shall survive the Closing and delivery of the Conveyance. 
  

 26 

 IN WITNESS WHEREOF, the respective parties have executed this Agreement this 7th day of July, 2005, to be effective for all purposes as of the Effective Date. 
  

			
	ASSIGNOR:
	
	CALPINE CORPORATION
		
	By:	 	  

	Name:	 	 
	Title:	 	 
	
	CPN PIPELINE COMPANY
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ASSIGNEES:
	
	ROSETTA RESOURCES CALIFORNIA, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ROSETTA RESOURCES OFFSHORE, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ROSETTA RESOURCES ROCKIES, LLC
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 27 

			
	ROSETTA RESOURCES TEXAS LP
	
	By: Rosetta Resources Texas GP, LLC,
            its general partner
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 28 

 Exhibit A 
  

List of Assignees and Transferred Properties 
  
 Rosetta Resources Texas LP, a Delaware limited partnership 
  
 Delaware, Arkansas, Onshore Louisiana, Missouri, Mississippi, Onshore Texas, Oklahoma 
  
 Rosetta Resources California, LLC, a Delaware limited liability company

  
 California 
  
 Rosetta Resources Offshore, LLC, a Delaware limited liability company 
  
 Offshore Louisiana and Texas 
  
 Rosetta Resources Rockies, LLC, a Delaware limited liability company 
  
 Montana, and Wyoming 

 Exhibit B 
  

Leases 

 Exhibit B-1 
 Non-Consent Leases 

 Exhibit C 
  

Well; Net Revenue Interest and Working Interests 

 Exhibit C-1 
  
 Non-Consent Wells; Net Revenue Interests 

 Exhibit C-2 
  
 Description of Rio Vista Gathering System Included in the Properties 

 Exhibit F 
  

Governmental Bonds 

 Exhibit G 
  

Form of Conveyance 

 Exhibit H 
  

Form of Joint Defense Agreement 
  
 JOINT DEFENSE AGREEMENT 
  
 This Joint Defense Agreement (“Agreement”) is made and entered into this
             day of                     ,
            , by and between                     
(“Indemnitor”), and
                                        
     (“Indemnitee”). 
  
 R E C I T A L S: 
  
 Calpine Corporation, a
Delaware corporation and CPN Pipeline Company, a Delaware Corporation (collectively referred herein as, the “Assignor”), and the subsidiaries of Calpine Gas Holdings LLC (“CGH”) that are identified as assignees on
the signature pages of the Transfer Agreement, as herein defined (collectively, the “Assignees”) entered into the Transfer and Assumption Agreement dated July 7, 2005 (“Transfer Agreement”) pursuant to which the
Assignees have been conveyed a portion of the Properties, as defined therein. 
  
 Indemnitor and Indemnitee have been named as Defendants in
                                        ,
                     Court,              County, Texas
(“Lawsuit”). Indemnitor and Indemnitee both deny any liability. However, Indemnitor and Indemnitee have agreed that under the Transfer Agreement the Indemnitor is obligated to indemnify the Indemnitee for those claims
(“Claims”), which are identified on Exhibit A attached hereto and made part hereof. 
  
 Indemnitor has selected and retained
                                        
     (“Law Firm”) to represent Indemnitor and Indemnitee in the defense of the Claims. The activities undertaken by Law Firm in pursuit of the common interest of Indemnitor and Indemnitee in the defense of the
Claims are referred to as the “Common Representation.” 
  
 In connection with the Common Representation and in consideration of the promises contained herein, Indemnitor and Indemnitee agree as follows: 
  
 1. Party Representatives: Indemnitor and Indemnitee shall each designate an in-house legal representative (each is referred to as a
“Party Representative”) in connection with all matters relating to the Common Representation. Subject to each party’s right to designate a new representative from time to time, Indemnitor designates
                     as its representative and Indemnitee designates
                     as its representative. Each Party Representative shall be authorized to speak for and communicate the decisions of the
applicable party. The Party Representatives shall be jointly responsible for the coordination of the Common Representation of Indemnitor and Indemnitee. Neither Party Representative shall have authority to act on behalf of any party other than the
party it represents. Each party shall assist through its Party Representative with the timely completion of discovery and other litigation projects. 
  
 2. Cooperation: Subject to Section 3, Indemnitee shall assist in the defense of the Claims, including providing all discovery items in its
possession, and cooperating in the compliance with any orders entered by the court (including the magistrate), including those with respect to discovery. 
  

 1 

 3. Costs of Common Representation: Indemnitor agrees to pay all costs, fees and expenses
incurred in pursing the Common Representation, including all attorneys’ and accountants’ fees and the cost of any bond is required by law to be posted in connection with such contest of the Claims. To the extent provided in the Transfer
Agreement, Indemnitor agrees to satisfy any judgment rendered against it or Indemnitee in connection with the Claims and to satisfy any of its or Indemnitee’s obligations under any agreement settling any of the Claims. 
  
 4. Termination: Except with regard to withdrawal on account of
settlement, if Indemnitee should at any time elect not to proceed further as a party subject to Common Representation, Indemnitee shall notify Indemnitor in writing, not less than five (5) business days prior to the effective date of such
withdrawal. Such withdrawal shall not release the Indemnitee from its obligations under Section 6 of this Agreement or the Indemnitor from any of its obligations under the Transfer Agreement with respect to the Claims. If the Indemnitee withdraws,
the Law Firm shall represent the Indemnitor. In the event that the Indemnitee does withdraw, the Indemnitee hereby waives any and all real or potential conflicts of interest and further waives any claim it may have to disqualify the Law Firm from
representing the Indemnitor. 
  
 5. Settlement: The
Indemnitor shall not enter into any settlement or compromise of the Claims without the consent of the Indemnitee, which consent shall not be unreasonably withheld. Unless prohibited by law or stock exchange regulation and the disclosing Party has a
legal opinion to such effect, both parties shall hold in confidence the terms of any settlement. 
  
 6. Joint Defense Privilege: With respect to asserting and preserving the attorney-client privilege, work product privilege or other
applicable privileges, in connection with matters involving the Common Representation, the parties acknowledge that each of them has a common interest in the Common Representation. Further, to prepare the Common Representation for trial and appeal,
if necessary, each party acknowledges that it is and will be necessary for the Party Representatives and their representatives to share or exchange certain information with Law Firm and its representative in the course of investigating and analyzing
the facts and circumstances. To protect privileged and confidential information in that process, the parties agree that privileged communications will remain privileged under the joint defense doctrine despite this sharing and exchanging of
information. The parties agree that all such information shall be shared or exchanged for solely the purpose of preparing and presenting a common defense. All parties agree to protect the confidentiality of such information regardless of the
disposition of this matter as to any one party or the withdrawal of a party from the Common Representation, and shall not disclose such information to any other person. Furthermore, neither party shall use any privileged and confidential information
obtained pursuant to this letter agreement against the other party in connection with any subsequent controversy or litigation between the parties. 
  
 7. Disputes: Indemnitor and Indemnitee each agree to use reasonable efforts to resolve any disputes among themselves that may arise
out of, or in connection with, the Common Representation of the parties. 
  

 2 

 8. Effective Date: Notwithstanding the date first set above, Indemnitor and Indemnitee
agree that the provisions of this Transfer Agreement, especially Section 6, memorialize their prior understanding regarding the matters appearing herein and shall be considered effective at the time the parties agreed to Common Representation, which
occurred on                      (“Effective Date”) prior to the sharing of any information. 
  
 9. Successors and Assigns: This letter agreement shall be
binding on the parties hereto and their successors and assigns. 
  
 10. Counterparts: This instrument may be executed in any number of counterparts, each of which shall be considered an original for all purposes. 
  
 11. Conflicts: This Agreement and the Transfer Agreement are to be interpreted together whenever possible.
However, if this Agreement is in direct conflict with the Transfer Agreement, the Transfer Agreement controls. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Agreement to be effective as of the Effective Date. 
  

			
	INDEMNITOR:
	
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	INDEMNITEE:
	
	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
  

 3 

 Exhibit I 
  

Contracts 

 Exhibit J 
  

Form of Assignment of Contracts 
  

 2 

 Exhibit K 
  

JOA 
  

 3 

 Schedule 1 
  

Liens 

 Schedule 4(b) 
  
 Assignor’s Retained Liability – Claims and Litigation Matters 
  
 ABA Energy Corporation, et al. v. Calpine Corporation, et al.; Superior Court of the
State of California, County of Yolo; Case No. CV04-1655 
  
 Calpine Corporation
and the Bank of New York have been sued by an operator, ABA Energy Corporation, and the lessors of the J.F. Hamel lease in Yolo County, California. For some time, ABA Energy had been in discussions claiming that: (1) the lease had expired, (2) it
was the new lessee, (3) it was acting on behalf of the landowners in requesting that Calpine quitclaim the lease to ABA, and (4) that Calpine not plug the existing well on the lease and restore the surface of the lease. Calpine stated that it would
quitclaim the lease and well to ABA so long as ABA secured a release from the lessors and the surface owners that released Calpine from its obligations. Calpine also requested indemnity from ABA, and it declined. 
  
 Prior to suit being filed, Calpine responded that it was willing to plug and abandon the well
and release (or quitclaim) the lease. Also, due to a mortgage on the lease, Calpine would have to obtain a release from the Bank of New York before the quitclaim could be filed of record. The lawsuit claims breach of contract, trespass, interference
with economic opportunity, and slander of title. 
  
 Axis Energy Corporation v.
Calpine Natural Gas Company; U. S. District Court for the Western District of Louisiana, Lake Charles Division; Civil Action No. 2:04CV2525 
  
 A complaint was filed in Cameron Parish, Louisiana regarding an oil and gas lease located in Cameron Parish. Plaintiff alleges that it was a working interest owner prior
to 1995, and that Calpine Natural Gas (f/k/a TGX Corporation) was the operator beginning in November 1989. It is further alleged that defendant did not conduct its operations in a good and workmanlike manner, and has therefore subjected plaintiff to
reimbursement of certain production revenues owed to lessors. The case was recently removed to federal court, and discovery is ongoing. 
  
 Deanne Lounsberry Duhon, et al. v. Ensearch Exploration, et al.; In the 15th Judicial District Court of Vermillion Parish, Louisiana; Docket No. 98-70418-D 
  
 On September 10, 2004, defendant Apache Corporation (“Apache”) filed a cross-claim and third party demand in the above listed matter and has named (incorrectly)
Calpine Natural Gas and Agricultural Methane. A dispute has arisen as to the division of royalties between certain groups. Plaintiffs are seeking the forfeiture from Apache of the working interest income stream from the proceeds of the production of
the well in various producing intervals. Apache is seeking claims for contribution and indemnification in the event Apache is found liable. Calpine Natural Gas and Agricultural Methane are currently reviewing these allegations. 
  

 1 

 Tom Mills v. Calpine Natural Gas Company, et al.; In the Superior Court of the State of California in and for the
County of Sacramento; Case No. 02AS04857 
  
 On August 1, 2002, plaintiff filed a
lawsuit against Calpine Natural Gas Company. The action is for alleged wrongful termination and defamation. Plaintiff’s position was eliminated under the Employee Redeployment Program. The defamation cause of action was dismissed by the court.
The matter recently settled, with CNG’s insurance carrier contributing a significant percentage toward the settlement. 
  
 Magdalene V. Nickle v. Union Gas Corporation, et al.; In the 135th District Court of Dewitt County, Texas; Cause No. 02-10-19, 166 
  
 This is a bad faith pooling case filed in DeWitt County, Texas, involving the Matthew No. 1 well. Plaintiff alleges breach of contract and breach of implied covenants and
seeks recoupment of royalties. Calpine only had an interest in this well for a short period of time prior to its sale to ANR Production. Discovery is currently in progress. 
  
 David Ohrt, et al. v. Union Gas Corporation; In the 24th Judicial District Court of Victoria County, Texas; Cause No. 01-12-57, 427-A 
  
 Sandra Hester, et al. v. Union Gas Corporation, et al.; In the 267th Judicial District Court of Victoria County, Texas; Cause No. 04-10-61, 891-C 
  
 Calpine Natural Gas Company was a defendant and a 12.5% working interest owner in the Ohrt-Heinhold Gas Unit in Victoria, Texas. Plaintiffs
sought payment of royalties on a lease basis (as opposed to on a pooled basis) from the date of first production in September 2000 until the designation of this unit was filed on January 15, 2001. Plaintiffs also alleged bad faith pooling, the core
claim of which was that the unit had been formed to include too many non-productive acres resulting in dilution. Defendants previously received a settlement demand of $7.8 million from plaintiffs, which included past and future claimed lost
royalties, attorneys’ fees, and interest. Following a trial on the merits (which concluded in March 2005), the jury unanimously found for the defendants on all causes of action. Plaintiffs are currently reviewing their appellate options.

  
 In October, 2004, several of the lessors involved in the above action filed
similar claims with respect to the Ohrt-Albrect Gas Unit. The Ohrt-Albrect Gas Unit is adjacent to the Ohrt-Heinhold Gas Unit. The named defendants in both matters are identical. Discovery is pending. 
  
 Arbitration between Calpine Corp./Calpine Natural Gas L.P. and Pogo Producing Company

  
 On September 1, 2004, Calpine Corporation and Calpine Natural Gas L.P.
(collectively “Calpine”), sold its New Mexico oil and gas assets to Pogo Producing Company (“Pogo”). During the course of the sale, Pogo made a title defect claim (valued at approximately $1.9 
  

 2 

 million) claiming that certain leases subject to the sale had expired. The dispute centers around a claim that certain
leases have expired because of lack of production. Although, Calpine has undertaken to resolve this matter by obtaining ratifications of a majority of the questionable leases, Pogo has been unwilling to compromise its claim for the title defect
value and has invoked the arbitration provisions of the underlying purchase and sale agreement. 
  
 Claim for Indemnification by Bill Barrett Corporation 
  
 Calpine Corporation and Calpine Natural Gas L.P. (collectively “Calpine”), sold its Colorado oil and gas assets to Bill Barrett Corporation (“Barrett”) on September 1, 2004 (the “Sale”). The purchase and sale
agreement (the “PSA”) between Calpine and Barrett provided that Calpine would indemnify Barrett for certain pre-effective date liabilities. In that regard, Barrett has notified Calpine that a lawsuit has been filed against Barrett alleging
that Barrett and its predecessors in interest failed to reasonably develop a lease that was conveyed to Barrett as part of the Sale. The suit is pending and no liability has been determined. If the plaintiff in that lawsuit is successful and it is
determined that a portion of the plaintiff’s claim arose prior to the effective date of the Sale (July 1, 2004) Barrett may, subject to certain conditions and restrictions set forth in the PSA, be entitled to indemnification for a portion of
any liability attributable to pre-effective date periods. 
  
 In the Matter of the
Arbitration between Seashore Investments Management LLC and Strategic Energy Development, LLC v. Calpine Corporation; Case No. 50T 153 00026 04 
  
 On January 13, 2004, Calpine filed two complaints in the U.S. District Court for the Eastern District of Louisiana. Calpine, Seashore, and Strategic entered into
agreements dated October 26, 2003. The agreements provided for Seashore and Strategic to pay certain monies to Calpine in exchange for the opportunity to earn an interest in the lease and a test well being drilled by Calpine, as operator. All
parties acknowledge that Calpine’s interest in the lease was burdened by a mortgage. While Calpine was seeking release of the mortgage, the parties agreed that Seashore and Strategic would deposit the monies owed Calpine into an escrow account.
Calpine secured and properly filed the partial release as required by the agreements, and therefore Calpine was entitled to receive the escrowed amounts of approximately $700,000 as to Seashore and approximately $1.4 million as to Strategic.
Seashore and Strategic refused to execute letters to the escrow agent authorizing release of the funds, and therefore actions were filed for breach of contract and unjust enrichment. Seashore and Strategic invoked arbitration and filed motions with
the court to compel arbitration, which have now been granted. A cause of action for fraud was recently added by Seashore and Strategic. An arbitration hearing was held in April 2005, and a ruling is expected shortly. 
  

 3 

 Schedule 28 
  
 Imbalances 
  

 1Transition Services Agreement

 Exhibit 10.3 
  

  
 TRANSITION SERVICES AGREEMENT 
  

  
 by and among 
  
 Calpine Corporation, 
  
 Calpine Fuels Corporation, 
  
 Rosetta Resources Texas LP, 
  
 Rosetta Resources California, LLC, 
  
 Rosetta Resources
Offshore, LLC, 
  
 Rosetta Resources Rockies, LLC, 
  
 Rosetta Resources Inc. 
  
 and 
  
 Calpine Natural Gas L.P. 
  

  
 July 7, 2005 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	 	 	  	Page No.

	 ARTICLE I DEFINITIONS
	  	1
	 	 	1.1	 	Capitalized Terms.	  	1
	 ARTICLE II SERVICE FEE AND TERM
	  	4
	 	 	2.1	 	Service Fee.	  	4
	 	 	2.2	 	Term.	  	4
	 ARTICLE III SERVICES TO BE PROVIDED
	  	5
	 	 	3.1	 	General.	  	5
	 	 	3.2	 	Personnel.	  	5
	 	 	3.3	 	Sellers’ Services.	  	5
	 	 	    (a)	 	    Information Systems.	  	5
	 	 	    (b)	 	    Consultation.	  	6
	 	 	    (c)	 	    Legal Advisory Services.	  	6
	 	 	    (d)	 	    Regulatory Advisory Services.	  	6
	 	 	    (e)	 	    Permitting and Construction.	  	7
	 	 	    (f)	 	    Operating and Maintenance.	  	7
	 	 	3.4	 	Rosetta Services.	  	7
	 	 	3.5	 	Additional Services.	  	8
	 	 	3.6	 	Joint Use.	  	8
	 ARTICLE IV PERFORMANCE AND AUTHORITY
	  	9
	 	 	4.1	 	Standard of Care – Indemnity Obligations.	  	9
	 	 	4.2	 	Independent Contractor Relationship.	  	10
	 	 	4.3	 	No Joint Venture or Partnership.	  	11
	 	 	4.4	 	Scope of Service Providers’ Authority with Respect to Sellers’ Services.	  	11
	 	 	4.5	 	Routine Communications.	  	12
	 	 	4.6	 	Notice of Authority.	  	12
	 ARTICLE V FINANCIAL REPORTING
	  	12
	 	 	5.1	 	Transfer of Cash; Invoice for Services.	  	12
	 	 	5.2	 	Monthly Settlement Statement.	  	12
	 	 	5.3	 	Monthly Financial Reporting Requirements	  	14
	 	 	5.4	 	Joint Interest Billings.	  	14
	 	 	5.5	 	Audit	  	14
	 ARTICLE VI RECORDS ACCESS AND COPYING
	  	15
	 	 	6.1	 	Interim Access.	  	15
	 	 	6.2	 	Interim Copying.	  	15
	 ARTICLE VII RECORDS TRANSFER
	  	15
	 	 	7.1	 	Transfer of Records.	  	15
	 	 	7.2	 	Electronic Transfer of Records.	  	15
	 ARTICLE VIII OWNERSHIP of Information
	  	15
	 ARTICLE IX FORCE MAJEURE
	  	15
	 	 	9.1	 	Force Majeure.	  	15
	 	 	9.2	 	Force Majeure Defined.	  	16
	 	 	9.3	 	Limitations.	  	16

  

 i 

							
	 ARTICLE X MISCELLANEOUS
	  	16
	 	 	10.1	  	Assignment.	  	16
	 	 	10.2	  	Notices.	  	16
	 	 	10.3	  	Governing Law.	  	18
	 	 	10.4	  	Headings.	  	18
	 	 	10.5	  	No Third Person Beneficiaries.	  	18
	 	 	10.6	  	Counterparts.	  	18
	 	 	10.7	  	Amendment.	  	18
	 	 	10.8	  	Severability.	  	18
	 	 	10.9	  	Entire Agreement.	  	19
	 	 	10.10	  	    Construction.	  	19
	 	 	10.11	  	    Dispute Resolution.	  	19
	 	 	10.12	  	    Conflict.	  	19
	 	 	10.13	  	    Confidentiality.	  	19
	 	 	10.14	  	    Preservation of Legal Privileges.	  	20
	 	 	10.15	  	    Joint Defense Privilege.	  	20
	 	 	10.16	  	    Exclusive Remedy; Survival of Indemnity Obligations.	  	22

  

 ii 

 ANNEX LIST 
  

			
	Annex 1	 	Subject Companies
		
	Annex 3.3(a) Part 1	 	Description of Information Services
		
	Annex 3.3(a) Part 2	 	Breakdown by Application of Software Maintenance Fees
		
	Annex 3.4	 	Rosetta Non-Consent Support Services and Rosetta Excluded Property Services
		
	Annex 5.2	 	Monthly Settlement Statement
		
	Annex 5.3	 	Sample Report
		
	Annex 7.2	 	Records in Electronic Form

  

 iii 

 TRANSITION SERVICES AGREEMENT 
  
 This Transition Services Agreement (this “Transition Agreement”) is made and entered into on July 7,
2005, by and among Rosetta Resources Texas LP, a Delaware limited partnership, Rosetta Resources California, LLC, a Delaware limited liability company, Rosetta Resources Offshore, LLC, a Delaware limited liability company, Rosetta Resources Rockies,
LLC, a Delaware limited liability company, (collectively the “Subject Companies”), Rosetta Resources Inc., a Delaware corporation (“Rosetta”), Calpine Natural Gas L.P., a Delaware limited partnership
(“CNGLP”), Calpine Corporation, a Delaware corporation (“Calpine”), and Calpine Fuels Corporation, a California corporation (“Calpine Fuels”), The entities in the preceding sentence are sometimes
herein collectively called “Parties” and each individually a “Party.” 
  
 R E C I T A L S: 
  
 The Sellers have entered into the Purchase and Sale Agreement (“Purchase and Sale Agreement”) pursuant to which the Sellers agreed to sell, and Rosetta agreed to purchase, the equity of the Subject
Companies. 
  
 Calpine and the Subject Companies have
entered into the Transfer and Assumption Agreement (“Transfer Agreement”) pursuant to which certain of the Subject Companies have been conveyed a portion of the Properties. As provided in more detail in the Transfer Agreement, if a
Consent necessary to transfer a property was not obtained, such property was retained and Seller and Rosetta, for six (6) months after Closing (“Consent Period”), shall attempt to obtain such Consent, and intend to transfer such
property to the Subject Companies if such Consent is obtained by the end of the Consent Period. 
  
 Rosetta desires that the Sellers provide certain services for all the Properties, including the Non-Consent Properties, for a certain interim transitional
period and Sellers desire that Rosetta provide Sellers certain support in connection with such services and certain services in connection with such Properties including the Non-Consent Properties for which such Consent is not obtained. 

 
 ARTICLE 
 IDEFINITIONS 
  
 1.1 Capitalized Terms. The capitalized terms used in this Transition Agreement that are defined in the Purchase and Sale Agreement shall have the meaning ascribed to them in such agreement, and the following
terms shall have the meaning ascribed to them below: 
  
 “Additional Services” are defined in Section 3.5. 
  
 “Applicable Laws” are defined in Section 4.1. 
  

 1 

 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a
day on which banks in San Jose, California or Houston, Texas, are generally authorized or obligated, by law or executive order, to close. 
  
 “Calpine” is defined in the Preamble. 
  
 “Calpine Fuels” is defined in the Preamble. 
  
 “CNGLP” is defined in the Preamble. 
  
 “Common Representation” is defined in Exhibit H to the Transfer Agreement, provided that for purposes of this Transition Agreement
such term shall expressly include the performance of Retained Liability Services or any other services provided hereunder relating to any claims by third parties.  
  
 “Confidential Information” is defined in Section 10.13. 
  
 “Consent Period” is defined in the above Recitals.

  
 “Consulting Costs” is defined in the
Section 3.4. 
  
 “Cured Non-Consent
Properties” means those Non-Consent Properties for which Consents are obtained within the Consent Period and which are transferred to the Subject Companies in accordance with the provisions of the Purchase and Sale Agreement. 
  
 “Current Month Settlement” is defined in Section
5.2. 
  
 “Effective Time” is defined in
Section 10.15. 
  
 “Excluded Properties”
means, after the end of the Consent Period, those Non-Consent Properties for which the Consents necessary to transfer the Properties to the Subject Companies are not obtained within the Consent Period and that are excluded from the Properties
transferred to the Subject Companies as provided in more detail in the Transfer Agreement. 
  
 “Facilities” is defined in Section 3.6. 
  
 “Fee Statement” is defined in Section 5.1. 
  
 “Force Majeure” is defined in Section 9.2. 
  
 “Indemnified Claims” is defined in Section 10.15.

  
 “Indemnitee” is defined in Section
10.15. 
  
 “Indemnitor” is defined in
Section 10.15. 
  
 “Law firm” is defined
in Section 10.15. 
  

 2 

 “Lawsuit” is defined in Section 10.15. 
  
 “Monthly Settlement Statement” is defined in Section
5.2. 
  
 “Non-Consent Properties” means,
during the period beginning on the Closing Date and ending on the earlier of the end of the Consent Period and the date Properties are transferred under Section 5(e) of the Transfer Agreement, all the Properties that were retained by a Seller in
accordance with the Transfer Agreement and Purchase and Sale Agreement in order to permit Rosetta and the Sellers to attempt to obtain the Consents necessary to transfer such Properties to the Subject Companies, provided such term does not include
any Excluded Properties after the end of the Consent Period. 
  
 “Party Representative” is defined in Section 10.15. 
  
 “Privilege” is defined in Section 10.14. 
  
 “Production Month Volume” means the volume of Hydrocarbons produced during a particular calendar month. 
  
 “Purchase and Sale Agreement” is defined in the above
Recitals. 
  
 “Representatives” is defined in
Section 3.2. 
  
 “Retained Liability
Services” is defined in Section 3.4. 
  
 “Rosetta” is defined in the Preamble. 
  
 “Rosetta Excluded Property Services” is defined in Section 3.4. 
  
 “Rosetta Non-Consent Support Services” is defined in Section 3.4. 
  
 “Rosetta Service Fee” is defined in Section 2.1. 
  
 “Rosetta Services” means all the services that Rosetta is
obligated to provide or cause its Affiliates to provide pursuant to Section 3.4, including Rosetta Non-Consent Support Services, Rosetta Excluded Property Services and Retained Liability Services, and any Additional Service provided pursuant
to Section 3.5 and Article V. 
  
 “Sellers” mean Calpine Natural Gas Holdings LLC and Calpine Fuels collectively and “Seller” means each of the Sellers individually. It is expressly understood that the term “Sellers” does
not include CNGLP, but does for the purposes of this Transition Agreement include Calpine. 
  
 “Sellers’ Service Fee” is defined in Section 2.1. 
  
 “Sellers’ Services” means, collectively, all services provided by Sellers or their Affiliates pursuant to Sections 3.3 and
3.5. 
  

 3 

 “Service Fee” is defined in Section 2.1. 
  
 “Service Provider” means (a) the Sellers and their
Affiliates with respect to the performance of Sellers’ Services and (b) Rosetta and its Affiliates with respect to the performance of Rosetta Services. 
  
 “Service Recipient” means (a) Rosetta and its Affiliates with respect to the performance of Sellers’ Services by the Sellers and
their Affiliates and (b) the Sellers and their Affiliates with respect to the performance of Rosetta Services by Rosetta and its Affiliates. 
  
 “Subject Companies” is defined in the Preamble. 
  

“Statement Date” is defined in Section 5.1. 
  
 “Term” is defined in Section 2.2. 
  
 “Transfer Agreement” is defined in the above Recitals. 
  
 “Transferred Properties” means all of the Properties except
the Non-Consent Properties. 
  
 “Transition
Agreement” is defined in the Preamble. 
  
 ARTICLE
II 
 SERVICE FEE AND TERM 
  
 2.1 Service Fee. Rosetta shall pay to Sellers for the performance of Sellers’ Services an aggregate monthly fee equal to the sum of the fees
(which fees are approximately equivalent to the amount that has historically been allocated for similar services) which are set forth for each service in Section 3.3 including any fees billed by the hour (the “Sellers’ Service
Fee”) for each calendar month during the Term applicable to Sellers’ Services. Notwithstanding the foregoing in the event Rosetta notifies Sellers that it is assuming responsibility for any category of the Sellers’ Services set
forth in Section 3.3 for which a separate monthly fee is specified, the subsequent monthly Service Fee shall be reduced by the amount of the monthly fee specified for such service. Calpine shall not be obligated to pay any fees for the
Rosetta Non-Consent Support Services or other services for 12 months from the Effective Time. After the six (6) month period, Calpine shall pay for any Rosetta Excluded Property Services, any third party costs or other expenses incurred by Rosetta
and any additional documented time of Calpine employees necessary to provide such services (“Rosetta’s Service Fee”). Sellers’ Service Fee and Rosetta’s Service Fee are collectively referred to herein as the
“Service Fee”. 
  
 2.2 Term. Subject to
the other provisions hereof, this Transition Agreement shall be effective on the date of the Closing and shall continue in effect (a) until six (6) months after Closing with respect to the Seller’s Services and Rosetta Non-Consent Support
Services for the Non-Consent Properties, (b) until one (1) year after the Closing 
  

 4 

 with respect to the performance of Sellers’ Services and Rosetta Non-Consent Support Services for each of the
Transferred Properties, or (c) until two (2) years after the Closing with respect to the performance of Rosetta Excluded Property Services for any Excluded Properties (the period this Transition Agreement is in effect with respect to a particular
service is herein called the “Term”). Upon receipt of notice from Rosetta or Calpine that it is assuming responsibility for a category of services, the Service Provider providing services shall have no further obligation to provide
such services under this Transition Agreement. Each Party or its Affiliates shall assume and be responsible for providing any further services being provided after the end of the Term. 
  
 ARTICLE III 
 SERVICES TO BE PROVIDED 
  
 3.1
General. Except for Rosetta Services, nothing herein shall require a Service Provider to provide services which it or its Affiliates had not been providing before the Closing or to provide records, financial information, or other information
which is not kept or reported by the Service Provider in the ordinary course of business. Nothing herein shall require a Service Provider to install, at its cost or expense, any equipment or expand any systems, or provide any services at any
location beyond the level or type of services provided by Service Provider (or as was historically provided by the Calpine employees) as of the date hereof. 
  
 3.2 Personnel. Each Service Provider shall provide (i) sufficient personnel, including, as necessary or appropriate, contractors, agents or
consultants (the “Representatives”), with the appropriate background and experience and (ii) equipment and facilities to perform the services it provides hereunder in a timely manner. Neither Party shall be obligated to hire any
employees or, except as provided in Section 3.4(b), retain any outside attorneys, consultants, engineers, or experts to provide the services under this Transition Agreement. 
  
 3.3 Sellers’ Services. Calpine shall cause Sellers to provide or cause their Affiliates to provide the following
specific services to Rosetta or its Affiliates with respect to each Transferred Property for the duration of the Term. Sellers shall not be obligated to provide Rosetta any of the services currently being provided by CNGLP to Calpine, under the
Agency and Contract Operator Agreement dated April 25, 2002 between Calpine and CNGLP. Calpine and CNGLP agree that said Agency and Contract Operator Agreement is hereby terminated effective as of the Closing Date. 
  
 (a) Information Systems. Calpine shall cause Sellers
or their Affiliates to provide Rosetta the Telecom Services, Data Storage Services, Outsourcing (SAIC) Services, Software Maintenance Services, Workforce Services and Infrastructure Services described on Annex 3.3(a) Part 1. The
monthly fee for each of said services is as follows: 
  

				
	Telecom Services	  	$	26,421.55
	Data Storage Services	  	$	2,919.60
	Outsourcing (SAIC)	  	$	27,984.43
	Software Maintenance	  	$	65,746.93
	Workforce	  	$	48,601.95
	Shared Infrastructure	  	$	68,889.12
	 	  	
	

	Total Monthly Fee:	  	$	240,563.58

  

 5 

 The above monthly fee for Software Maintenance is further broken down on an annual basis
by application in Annex 3.3(a) Part 2. If Rosetta decides that it does not need to continue using any of the applications listed on Annex 3.3(a) Part 2, it may terminate the receipt of software maintenance services for that application
and reduce the total monthly fee for software maintenance services by the amount set forth on Annex 3.3(a) Part 2 for such application. Such termination shall be effective as of the beginning of a month, provided that (i) written notice of
such termination and reduction is given to Sellers at least 20 days prior to the beginning of such month and (ii) Seller will be required to pay the fee with respect to any month and application, only to the extent amounts Sellers have paid as a
third party a maintenance fee for that month and application. Sellers shall also use commercially reasonable efforts to assist Rosetta in establishing relationships with third-party service providers to provide each of the services as described in
this Section 3.3(a). If Rosetta desires any new hardware or software, Sellers shall install such hardware and software if Rosetta negotiates to acquire and prepays all costs and expenses associated with the acquisition, training and
installation of such hardware and software, provided that Seller not be obligated to provide any of the services described in this Section 3.3(a) and Annex 3.3(a) Part 1 with respect to any such hardware or software requested by
Rosetta unless Sellers determine, in their reasonable judgment, that such hardware and software comply with Sellers’ standards and can be legally used by Sellers and does not materially conflict with or limit the use of Sellers’ systems.

  
 (b) Consultation. During normal
business hours, Rosetta shall be entitled to reasonably consult with Sellers’ management or supervisory Representatives providing the Sellers’ Services in regard to such services for a period of time not to exceed 20 hours per month.
Calpine shall cause Sellers or their Affiliates to make such Representatives reasonably available to Rosetta. The fee for such service shall be $300 per hour. 
  

(c) Legal Advisory Services. Calpine shall cause Sellers or their Affiliates to, during normal business hours, make their legal
representatives available to Rosetta to ensure the orderly transition of pending legal matters to Rosetta. The fee for such service shall $300 per hour after the first forty (40) hours. The first 40 hours shall be provided at no fee. 
  
 (d) Regulatory Advisory Services. Calpine shall cause
Sellers or their Affiliates to provide regulatory advisory services to Rosetta, provided, however, that Sellers shall have neither the right nor the obligation to enter into 
  

 6 

	

 arrangements or make filings with any Government Body on behalf of Rosetta, including,
without limitation, those services (i) required for the preparation of permit applications in the City of Rio Vista County, California, directed to the Attorney for Solano County and (ii) necessary to obtain regulatory approvals related to
Rosetta’s purchase of the PG&E Rio Vista Gathering System, and all such services shall be provided in a manner that will not interfere with Calpine corporate policies. The monthly fee for such service shall be $300. 
  
 (e) Permitting and Construction. Calpine shall cause
Sellers or their Affiliates to provide consulting services to Rosetta for the construction and permitting of Rosetta’s and the Subject Companies gas gathering systems. The monthly fee for such service shall be $1,900.00. 
  
 (f) Operating and Maintenance. Calpine shall cause
Sellers or their Affiliates to provide personnel for pipeline operating and maintenance assistance to Rosetta for the operation and maintenance of Rosetta’s and the Subject Companies’ gas gathering systems. The monthly fee for such
services shall be $9,000.00. 
  
 3.4 Rosetta Services.

  
 (a) General Services. If and to the extent that CNGLP
is currently provided, or has within the last twelve (12) months provided, services that are necessary, helpful or appropriate in order for Sellers or their Affiliates to perform the Sellers’ Services with respect to any of the Non-Consent
Properties or the Transferred Properties, or to operate, own, maintain and manage such Non-Consent Properties, Rosetta shall provide or cause its Affiliates, including CNGLP, to provide Sellers and their Affiliates such services (“Rosetta
Non-Consent Support Services”), for the applicable Term. Without limitation of the foregoing, it is expressly understood that such Rosetta Non-Consent Support Services shall also include, but are not limited to, the services described on
Annex 3.4, arranging for payment of royalties and severance taxes, and obtaining, with the cooperation of Sellers, (i) any consents to transfer the Non-Consent Properties to Rosetta or a Subject Company, and (ii) any releases of bond placed
by Sellers. In addition, Rosetta shall provide or cause its Affiliates, including CNGLP, to provide Sellers and their Affiliates with the same services as the Rosetta Non-Consent Support Services (“Rosetta Excluded Property
Services”) for the Excluded Properties commencing at the end of the Consent Period and continuing thereafter during the Term applicable to the Excluded Properties as provided in Section 2.2. 
  
 (b) Retained Liability Services. Rosetta shall provide and shall cause
its Affiliates, including CNGLP, to provide Sellers and its Affiliates, at Sellers’ sole cost and expense, such services, except for legal services (“Retained Liability Services”) (a) as may be necessary or appropriate from
time to time to investigate, cure, remediate, compromise, settle, defend, prosecute, litigate or appeal any of the Sellers’ Retained Liabilities, and (ii) necessary to collect any revenue from the Transferred Properties and Cured Non-Consent
Properties and pay the applicable royalties; provided that, Rosetta shall continue to withhold the applicable percentage of the royalty payments from the Rio 
  

 7 

 Vista field as are presently being withheld for Sellers’ account, until all monies for which royalty owners have
been overpaid have been recovered. Rosetta’s obligation to provide and cause its other Affiliates to provide such the Retained Liability Services shall continue in effect, with regard to each of Sellers’ Retained Liabilities, so long as a
claim may be legally maintained with respect to such liability and shall survive the termination or cancellation of this Transition Agreement as to all other services; provided that, in no event, shall Rosetta be obligated to provide and or cause
its Affiliates to provide Retained Liability Services more than 10 years after the Closing. 
  
 (b) WestCarb Services. In addition to the foregoing and at Rosetta’s cost, Rosetta shall also be obligated to provide operating, management, consulting and technical services in connection with
WESTCARB/DOE carbon dioxide monitoring project, including such services with respect to a third party drilling contractor drilling or re-completing of any wells, but excluding the costs of any third party consultants which will be selected and hired
by Calpine or, if necessary, a project manager (collectively the “Consulting Costs”). Rosetta shall be responsible, and pay for the first one million dollars in third party costs excluding Consulting Costs, but including those for
drilling or reworking wells, and Sellers shall pay all costs in excess thereof (and all third party costs shall be paid in advance upon twenty (20) day written request of Rosetta). 
  
 (c) Seismic Services. Rosetta shall use good faith and commercially reasonable efforts to obtain consents to transfer
any geological or geophysical license for which consent to assign was not obtained prior to Closing on the most economical basis. Sellers’ share of the costs of obtaining such transfers shall not to exceed $4,500,000.00 in total. 
  
 3.5 Additional Services. Except as otherwise provided in this Section,
each Service Provider shall perform or cause its Affiliates to perform any additional services (“Additional Services”) (a) that are reasonably requested by its Service Recipient, in writing, from time to time, and (b) that are
reasonably necessary to effectuate an orderly transition in the operation of the Transferred Properties or Cured Non-Consent Properties or the operation of the Excluded Properties, unless such performance would significantly disrupt the operations
of such Service Provider or its Affiliates or materially increase its responsibilities under this Transition Agreement. Such Service Recipient shall reimburse such Service Provider and its Affiliates for any and all costs and expenses, whether
direct or indirect, including a reasonable amount for overhead, in connection with any Additional Services, so provided by such Service Provider. If the Service Provider or its Affiliates reasonably believes the performance of the Additional
Services required above would significantly disrupt its operations or materially increase the scope of its responsibility under this Transition Agreement, the Parties shall negotiate in good faith to establish terms under which the Service Provider
and its Affiliates shall provide such Additional Services, but such Service Provider shall not be obligated to provide such Additional Services if, following good faith negotiation, it is unable to reach agreement on such terms. 
  
 3.6 Joint Use. Subject to any agreement with third parties and if not
in material violation of such agreement, any Party shall have the right to utilize any 
  

 8 

 Transferred Property and Non-Consent Property of another Party and any other property of the another Party necessary for
performing their services, or to own, operate, maintain and manage such Properties (the “Facilities”). Such use shall include, but is not limited to, the use of Facilities for the separating, metering, and handling of production and
delivering production to the point of sale and salt water to any existing saltwater disposal wells and disposing of salt water at the Facilities. Any Facility is and shall remain the property of the Party owning such Facility pursuant to the
Transfer Agreement. The cost, risk and expense associated with any Facilities utilized shall be borne by the Parties using such Facilities in proportion to their use of such Facilities. The owner of the Facility being utilized shall retain the
exclusive right to control and conduct any and all operations, including but not limited to, daily operations, maintenance, modification, and construction activities as to the Facility. The Parties use of the Non-Consent Properties shall be subject
to the provisions of this Section 3.6 from the Effective Date and the provisions herein shall continue in effect for six (6) months after the Closing, or for so long thereafter until the Parties enter into a suitable and more definite
agreement for the use of the Non-Consent Properties. 
  
 ARTICLE
IV 
 PERFORMANCE AND AUTHORITY 
  
 4.1 Standard of Care – Indemnity Obligations. 
  
 (a) Each Service Provider shall provide the services that it is obligated to provide under this Transition
Agreement in accordance with the management and administrative practices used and at the same level of service provided by Sellers and their Affiliates in the past in connection with the Properties and the Buyer Business. Each Service Provider shall
provide the services that it is obligated to provide under this Transition Agreement in material compliance with any and all federal, state, local and tribal laws, rules and regulations (“Applicable Laws”) applicable to the
particular Properties. 
  
 (b) Except for their
indemnity obligations hereunder, Calpine, Sellers and their Affiliates shall have no responsibility for and shall incur no liability for any Loss of any nature suffered or incurred by Rosetta or its Affiliates arising out of or in connection with
this Transition Agreement, including (i) the rendering of the Sellers’ Services by Sellers or their Affiliates, or (ii) the provision or failure of Rosetta or its Affiliates to provide Rosetta Services INCLUDING WITHOUT LIMITATION ANY LOSS
ARISING OUT OF OR IN CONNECTION WITH THE NEGLIGENCE OF SELLERS AND/OR THEIR AFFILIATES OR FOR WHICH SELLERS AND/OR THEIR AFFILIATES, WOULD OTHERWISE BE STRICTLY LIABLE, unless such Losses are the result of the gross negligence or willful misconduct
of Sellers and/or its Affiliates. Calpine and Sellers, at their expense, shall jointly and severally indemnify, defend and hold harmless Rosetta, its Affiliates and their respective Representatives from and against any Loss arising out of or in
connection with the gross negligence or willful misconduct of Sellers and/or its Affiliates in connection with the performance of Sellers’ Services hereunder; provided that Sellers or their Affiliates shall not have any 
  

 9 

 such obligation to Rosetta (A) to the extent any of Sellers or their Affiliates are unable to provide
Sellers’ Services because Rosetta or its Affiliates fails to provide Rosetta Services or (B) with respect to any Rosetta Services that Rosetta or its Affiliates provide or cause to be provided. Rosetta, at its expense, shall indemnify, defend,
and hold harmless Sellers their Affiliates and their respective Representatives from and against any Losses arising out of or in connection with the furnishing of Sellers’ Services hereunder by Sellers or their Affiliates, INCLUDING WITHOUT
LIMITATION ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THE NEGLIGENCE OF SELLERS AND/OR THEIR AFFILIATES OR FOR WHICH SELLERS AND/OR THEIR AFFILIATES WOULD OTHERWISE BE STRICTLY LIABLE, except to the extent attributable to the gross negligence or
willful misconduct of Sellers and/or their Affiliates in connection with the performance of Sellers’ Services hereunder. 
  
 (c) Except for their indemnity obligations hereunder, Rosetta and its Affiliates shall have no responsibility for and shall incur no
liability for any Loss of any nature suffered or incurred by Calpine and Sellers or their Affiliates arising out of or in connection with this Transition Agreement, including (i) the rendering of the Rosetta Services by Rosetta or its Affiliates, or
(ii) the failure of Sellers and their Affiliates to provide Sellers’ Services INCLUDING WITHOUT LIMITATION ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THE NEGLIGENCE OF ROSETTA AND/OR ITS AFFILIATES OR FOR WHICH ROSETTA AND/OR ITS AFFILIATES
WOULD OTHERWISE BE STRICTLY LIABLE, unless such Losses are the result of the gross negligence or willful misconduct of Rosetta and/or its Affiliates. Rosetta, at its expense, shall indemnify, defend and hold harmless Calpine, Sellers and their
Affiliates and their respective Representatives from and against any Loss arising out of or in connection with the gross negligence or willful misconduct of Rosetta and/or its Affiliates in connection with the performance of Rosetta Services
hereunder; provided that Rosetta or its Affiliates shall not have any such obligation to Calpine, Seller and their Affiliates (A) to the extent Rosetta or any of its Affiliates are unable to provide Rosetta Services because Sellers or their
Affiliates fail to provide Sellers’ Services or (B) with respect to any Sellers’ Services that Sellers or their Affiliates provide or cause to be provided. Calpine and Sellers, at their expense, shall jointly and severally indemnify,
defend, and hold harmless Rosetta, its Affiliates, and their respective Representatives from and against any Losses arising out of or in connection with the furnishing of Rosetta Services hereunder by Rosetta or its Affiliates, INCLUDING WITHOUT
LIMITATION ANY LOSS ARISING OUT OF OR IN CONNECTION WITH THE NEGLIGENCE OF ROSETTA AND/OR ITS AFFILIATES OR FOR WHICH ROSETTA AND/OR ITS AFFILIATES WOULD OTHERWISE BE STRICTLY LIABLE, except to the extent attributable to the gross negligence or
willful misconduct of Rosetta or its Affiliates in connection with the performance of Rosetta Services hereunder. 
  
 4.2 Independent Contractor Relationship. The Parties acknowledge and agree that each Service Provider is an independent contractor, with the
authority, subject to Section 4.4, to control, oversee and direct the performance of the details of the services it 
  

 10 

 provides, the Service Recipient being only interested in the results obtained. Each Service Recipient shall have the
right (to the extent not in violation of Applicable Law or inconsistent with reasonable business practices), to direct the Service Provider to conduct or not conduct services (consistent with the Service Providers’ obligations contained herein)
with respect to the Properties, including the Non-Consent Properties, but the means and manner of the same shall be in the exclusive control of the applicable Service Provider. 
  
 4.3 No Joint Venture or Partnership. This Transition Agreement is not intended to and shall not be construed as
creating a joint venture, partnership, agency or other association within the meaning of the common law or under the laws of the state in which any Party is incorporated, organized or conducting business. None of the Service Providers shall have any
fiduciary obligation to the Service Recipients hereunder arising under or in connection with this Transition Agreement. 
  
 4.4 Scope of Service Providers’ Authority with Respect to Sellers’ Services. Each Service Provider’s authority to perform services
is subject to the following: 
  
 (a) The Service
Provider shall not have authority to execute, amend, waive, release, extend, terminate or otherwise modify any of the contracts, leases or easements affecting the Properties for which services are being provided without Service Recipient’s
prior written consent. 
  
 (b) Subject to
Section 4.4(c), the Service Recipient’s payment of invoices or other items shall be subject to the following procedures: 
  
 (i) All other third person invoices (including any received directly by Service Recipient and forwarded to Service Provider) shall be
first approved and appropriately coded by the Service Recipient prior to payment by Service Provider. Service Recipient shall provide a description of the property and expense and shall forward invoices to the appropriately designated Service
Provider office. 
  
 (c) The Service Provider
shall not have the authority to do any of the following on behalf of the Service Recipient: 
  
 (i) borrow or lend money; 
  
 (ii) create any lien or encumbrance, other than operators’, carriers’, repairmens’, mechanics’, materialmen’s
liens, or other like liens, in each case only to the extent arising in the ordinary course of business and only to the extent securing obligations which are not delinquent or which are being contested in good faith by appropriate proceedings;

  
 (iii) purchase or sell any of the Properties;

  
 (iv) execute any indemnification, release or
waiver; 
  

 11 

 (v) take any other action not in the ordinary course of business; or, 
  
 (vi) unless otherwise expressly provided in any other written agreement
between such Service Provider and such Service Recipient, participate in oil and gas futures or hedging activities. 
  
 4.5 Routine Communications. Each Service Recipient shall designate certain employees for the Service Provider’s personnel to contact for the
purpose of obtaining Service Recipient’s consent as set forth in Section 4.4(a), and for other matters concerning the services that it provides hereunder. 
  
 4.6 Notice of Authority. Subject to the concurrence of the Service Recipient, the Service Provider shall, to the
extent required by Applicable Law, notify third persons with whom it deals, including, but not limited to, lessors, local, state and federal agencies, operators of non-operated Properties, vendors and other owners, that it is acting as an
independent contractor on behalf of Service Recipient for the limited purpose of providing services; provided, however, that to the extent allowed by Applicable Law, Rosetta or Sellers shall not notify any state tax and regulatory
agencies until such time as Rosetta assumes the responsibility for filing and reporting taxes and regulatory matters on its own behalf. 
  
 ARTICLE V 
 FINANCIAL
REPORTING 
  
 5.1 Transfer of Cash; Invoice for
Services. On the last day of the first month of the Term and the last day (or if the last day is not a Business Day, the first Business Day following the last calendar day) of each calendar month thereafter (each such day being a
“Statement Date”), Sellers shall pay to Rosetta via wire transfer, an amount equal to any monies Calpine or any of its subsidiaries received (a) prior to the Effective Date and (b) after the Effective Date from third parties, which
is the property of Rosetta, the Subject Companies or CNGLP (“Current Month Settlement”) which shall be calculated as provided in Section 5.2 of this Transition Agreement. Notwithstanding the above, (a) Sellers shall pay
Rosetta for all months of production during the Consent Period with respect to Cured Non-Consent Properties on the last day of the first month immediately following the Conveyance of such properties under the Transfer Agreement or the Purchase and
Sale Agreement and (b) no such payments shall ever be made with respect to any Excluded Property. From and after the Effective Date, each Service Provider shall invoice (“Fee Statement”) the Service Recipient for all amounts owed
hereunder by the Service Recipient, if any, for all services provided hereunder during the immediately preceding month. The Service Recipient shall pay all amounts owed for such services, with ten (10) days after the receipt of such invoice.

  
 5.2 Monthly Settlement Statement. On the date any
amounts are transferred pursuant to Section 5.1, Rosetta shall submit to Sellers a “Monthly Settlement Statement” prepared by Rosetta substantially in the form of Annex 5.2 attached hereto, calculating the Current
Month Settlement for each calendar month for which payment is 
  

 12 

 being made, to the extent any such amount has not previously been accounted for as to the Transferred Properties, the
Cured Non-Consent Properties, the Non-Consent Properties and the Excluded Properties. The Current Month Settlement shall be calculated as the: 
  
 (a) Net Revenue Interest share of all revenues (less severance and production taxes allocable to the Party to be paid under the Purchase
and Sale Agreement or the Transfer Agreement and paid by or on behalf of the other Party) attributable to the sale of production from the Transferred Properties, the Cured Non-Consent Properties, the Non-Consent Properties and the Excluded
Properties subsequent to the Effective Time and received by the other Party: 
  
 (i) Prior to the last day of any given month, as set forth in Section 5.1, if received from an Affiliate of Sellers, or 
  

(ii) During the prior monthly accounting cycle, if received from a third person; 
  
 (b) less, the Working Interest share of all direct operating
expenses paid by Sellers for Rosetta’s account or by Rosetta for Sellers’ account, during the prior monthly accounting cycle for operations subsequent to the Effective Time (with respect to Properties operated by third persons, such direct
operating expenses shall include COPAS charges); 
  
 (c) plus, COPAS credits received by Sellers during the prior monthly accounting cycle from other owners for Rosetta-operated Transferred Properties and Cured Non-Consent Properties for operations subsequent to the Effective Time;

  
 (d) less, the Working Interest share of all
capital expenditures paid by Sellers for Rosetta’s account during the prior monthly accounting cycle related to the Transferred Properties and Cured Non-Consent Properties for operations on or after the Effective Time; 
  
 (e) less, the Working Interest share of all bonuses, lease
rentals, shut-in payments and other charges paid by Sellers on behalf of Rosetta or by Rosetta on behalf of Sellers with respect to Transferred Properties, the Cured Non-Consent Properties, and the Excluded Properties during the prior monthly
accounting cycle which became due and payable on or after the Effective Time; 
  
 (f) less, the Service Fee, as applicable; and 
  
 (g) plus or less, such other amounts as may be agreed by the Parties in writing. 
  
 Except as expressly provided herein, neither Party shall be charged hereunder for any internal overhead or non-billable charges of the
other allocated by such Party to any of the Properties, nor for any COPAS overhead charges attributable to Properties operated by Rosetta. 
  

 13 

 5.3 Monthly Financial Reporting Requirements. For two (2) years from the Effective Time, within
fifteen (15) Business Days after the end of each calendar month, Rosetta shall report to Sellers (a) the net revenues and severance and production taxes and direct operating expenses (as processed during the preceding accounting month), on an
accrual basis; and (b) adjusted volume and price information for each previous calendar month since the Effective Time. Rosetta shall provide accrued sales volumes and prices no later than the eight (8th) Business Day following the previous month.
Sellers or their Affiliates, including Calpine Producer Services, shall continue to generate internal or other operation reports, including those defined in the preceding sentence, for the Properties, and provide such reports to Rosetta (in the same
time frame they are currently distributed) to Rosetta. The reports currently generated by Sellers are exhibited on Annex 5.3. 
  
 5.4 Joint Interest Billings. In addition to the financial reporting requirements detailed above, Rosetta shall provide to Sellers during the Term
for the performance of Sellers’ Services and for a period of four (4) accounting months thereafter, monthly aged accounts receivable reports detailing any uncollected joint interest billings issued to third persons for operations conducted on
the Transferred Properties and Non-Consent Properties subsequent to the Effective Time. During this period, Rosetta shall use commercially reasonable efforts to collect all joint interest billings so billed. At the first month after the end of the
Consent Period, Rosetta shall, with respect to the Transferred Properties and the Cured Non-Consent Properties, (a) reimburse Sellers for the then-outstanding amount of joint interest billings attributable to operations on such Properties subsequent
to the Effective Time, and (b) assume responsibility for the collection thereof. After Rosetta reimburses Sellers, Rosetta shall have the right to retain all amounts it collects. 
  
 5.5 Audit. 
  
 (a) Each Service Recipient shall have the right to conduct an audit of the books and records of each Service Provider insofar as they pertain to services
provided pursuant to this Transition Agreement for the purpose of determining the accuracy of all charges, invoices, statements, and payments made hereunder and to object to the amounts set forth therein; and 
  
 (b) Each Service Provider and Service Recipient shall have the right to an
adjustment of amounts paid hereunder when an error occurs; provided, however, that any audit must be completed, and any objections made, on or before the expiration of one (1) year after the first Monthly Settlement Statement or Fee Statement, which
sets forth such amounts, was received or provided by such Party. 
  

 14 

 ARTICLE VI 
 RECORDS ACCESS AND COPYING 
  
 6.1 Interim Access. Each Service Provider shall provide the Service Recipient with reasonable access to the records and files pertaining to the Properties including any Non-Consent Properties. 
  
 6.2 Interim Copying. Each Service Provider shall deliver files or
records reasonably requested by the Service Recipient or, in the alternative, shall provide reasonable access during normal business hours, to copying equipment and sufficient facilities for copying to be performed by such Service Recipient. The
expenses charged such Service Recipient for copying shall not exceed fifty percent (50%) of the actual and reasonable costs incurred by such Service Provider. All copies made pursuant to this Section shall be the property of such Service Recipient.

  
 ARTICLE VII 
 RECORDS TRANSFER 
  
 7.1 Transfer of Records. Each Service Provider shall transfer all files created or maintained in connection with the performance of services by
such Service Provider, including any revenue remittance detail and vouchers, royalty compliance reports, and all other accounting records and files to the Service Recipient within fifteen (15) Business Days following the end of the last month during
which such services are performed under this Transition Agreement. 
  
 7.2 Electronic Transfer of Records. To the extent a Service Provider maintains in electronic form any records and files relevant to the Properties including those listed on Annex 7.2, and except as restricted by the Purchase
and Sale Agreement, such Service Provider shall use its reasonable efforts to transfer such electronic files to the Service Recipient. Each Service Provider shall reasonably assist the Service Recipient in order to provide that such data is in a
form that can be reasonably accessed by the Service Recipient. 
  
 ARTICLE VIII 
 OWNERSHIP OF INFORMATION 
  
 Information, work product and data concerning the Properties generated by each Service Provider in providing services hereunder shall be the
property of the Service Recipient and shall be delivered to the Service Recipient at the end of the applicable Term with respect to the Transferred Properties and Non-Consent Properties transferred to Rosetta or its Affiliates under the Transfer
Agreement for which such services were provided. 
  
 ARTICLE IX

 FORCE MAJEURE 
  
 9.1 Force Majeure. If by reason of Force Majeure any Party hereto is rendered unable, wholly or in part, to carry out its obligations under this
Transition Agreement, and if such Party gives notice and reasonably full particulars of such Force 
  

 15 

 Majeure in writing or by facsimile transmission to the other within a reasonable time after the occurrence of the cause
relied on, the Party giving such notice, so far as and to the extent that it is affected by such Force Majeure, shall not be liable for failure of performance hereof during the continuance of any inability so caused; provided such cause shall be
remedied with all reasonable dispatch. 
  
 9.2 Force Majeure
Defined. As used herein, “Force Majeure” shall mean acts of God, strikes, lockouts, or other industrial disturbances; acts of a public enemy, wars, blockades, insurrections, riots, epidemics, landslides, lightning, earthquakes,
fires, storms (including hurricanes or hurricane warnings), floods, washouts; arrests and restraints of the government, either federal or state, civil or military, civil disturbances; shutdowns for purposes of necessary repairs, relocation, or
construction of facilities; breakage or accident to machinery or lines of pipe; the necessity for testing accidents, breakdowns and any other causes, whether of the kind enumerated or otherwise, which are not reasonably in the control of the Party
or its Affiliates claiming suspension. It is understood and agreed that the settlement of strikes or lockouts shall be entirely within the discretion of the Party having the difficulty and that the above requirement that any force majeure shall be
remedied with all reasonable dispatch shall not require the settlement of strikes or lockouts by acceding to the demands of an opposing party when such course is inadvisable in the discretion of the Party having the difficulty. 
  
 9.3 Limitations. Such Force Majeure affecting the performance
hereunder by any Party, however, shall not relieve such Party of liability in the event of the failure to use due diligence to remedy the situation and to remove the cause in an adequate manner and with all reasonable dispatch, nor shall such causes
or contingencies affecting such performance relieve a Party from its obligations to make payments as determined hereunder. 
  
 ARTICLE X 
 MISCELLANEOUS

  
 10.1 Assignment. This Transition Agreement
shall be binding upon and shall inure to the benefit of the Parties and their respective permitted successors and assigns. Notwithstanding the preceding sentence, no Party shall assign this Transition Agreement or its rights hereunder without each
other Party’s prior written consent, which shall not be unreasonably withheld or delayed. 
  
 10.2 Notices. All notices required or permitted under this Transition Agreement shall be in writing and shall be delivered personally or by certified mail, postage prepaid and return receipt requested or by
telecopier as follows: 
  

			
	If to Sellers:	 	Calpine Corporation
	 	 	50 West San Fernando, Suite 500
	 	 	San Jose, California 95113
	 	 	Attention: John King, Senior Vice President-International
	 	 	Telephone: (408) 794-2608
	 	 	Telecopier: (408) 294-1740

  

 16 

			
	 	 	Calpine Fuels Corp.
	 	 	50 West San Fernando, Suite 500
	 	 	San Jose, California 95113
	 	 	Attention: John King, Senior Vice President-International
	 	 	Telephone: (408) 794-2608
	 	 	Telecopier: (408) 975-4648
		
	with a copy to:	 	Calpine Corporation
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: Nanette Crawford
	 	 	Telephone: (713) 830-2085
	 	 	Telecopier: (713) 830-8751
		
	If to CNGLP:	 	Calpine Natural Gas L.P.
	 	 	50 West San Fernando, Suite 500
	 	 	Attention: General Counsel
	 	 	Telephone: (408) 794-2608
	 	 	Telecopier: (408) 975-4648
		
	If to Rosetta:	 	Rosetta Resources Inc.
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: B.A. (Bill) Berilgen
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056
		
	with a copy to:	 	Rosetta Resources Inc.
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: Mike Hickey
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056
		
	with a copy to:	 	Rosetta Resources California, LLC
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: B.A. (Bill) Berilgen
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056
		
	with a copy to:	 	Rosetta Resources Offshore, LLC
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: B.A. (Bill) Berilgen
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056

  

 17 

			
	with a copy to:	 	Rosetta Resources Rockies, LLC
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: B.A. (Bill) Berilgen
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056
		
	with a copy to:	 	Rosetta Resources Texas LP
	 	 	717 Texas, Suite 2800
	 	 	Houston, Texas 77002
	 	 	Attention: B.A. (Bill) Berilgen
	 	 	Telephone: (713) 335-2400
	 	 	Telecopier: (713) 651-3056

  
 or to such other place within the
United State of America as a Party may designate for itself as to itself by written notice to the other. All notices given by personal delivery or mail shall be effective on the date of actual receipt at the appropriate address. Notices given by
telecopier shall be effective upon actual receipt if received during recipient’s normal business hours or at the beginning of the next Business Day after receipt if received after the recipient’s normal business hours. All notices by
telecopier shall be confirmed in writing on the day of transmission by either mailing by postage prepaid certified mail with return receipt requested, or by personal delivery. 
  
 10.3 Governing Law. This Transition Agreement and the obligations of the Parties hereunder will be governed by and
construed in accordance with the laws of the State of Texas, without giving effect to any choice of law principles thereof. 
  
 10.4 Headings. The article and section headings contained in this Transition Agreement are inserted for convenience only and will not affect in any
way the meaning or interpretation of this Transition Agreement. 
  
 10.5 No Third Person Beneficiaries. Except as expressly provided herein, nothing in this Transition Agreement shall entitle any person other than the Parties, or their respective successors and assigns permitted hereby to make any
claim, cause of action, remedy or right of any kind. 
  
 10.6
Counterparts. This Transition Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. 
  
 10.7 Amendment. No amendment, modification, replacement, termination
or cancellation of any provision of this Transition Agreement, including this Section and the Annexes hereto, will be valid, unless the same will be in writing signed by all the Parties. 
  
 10.8 Severability. The provisions of this Transition Agreement will be
deemed severable and the invalidity or unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided, however, that if any 
  

 18 

 provision of this Transition Agreement, as applied to any Party or to any circumstance, is adjudged by a court of
competent jurisdiction, arbitrator, or mediator not to be enforceable in accordance with its terms, the Parties agree that the court of competent jurisdiction, arbitrator, or mediator making such determination will have the power to modify the
provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced. 
  
 10.9 Entire Agreement. This Transition Agreement and the Purchase and
Sale Agreement and the Transfer and Assumption Agreement constitutes the entire agreement and understanding of the Parties in respect of its subject matters and supersedes all prior understandings, agreements, or representations among the Parties,
written or oral, to the extent they relate in any way to the subject mater hereof or the transactions contemplated herein. 
  
 10.10 Construction. The Parties have participated jointly in the negotiation and drafting of this Transition Agreement. If an ambiguity or question
of intent or interpretation arises, this Transition Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party because of the authorship of any provision of
this Transition Agreement. Any reference to any Applicable Law will be deemed also to refer to such law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words “include,”
“includes” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be
construed to include the plural and vice versa, unless the context otherwise requires. The words “this Transition Agreement,” “herein,” “hereof,” “hereunder” and words of similar import refer to this
Transition Agreement as a whole and not to any particular subdivision unless expressly so limited. The Annexes identified in this Transition Agreement are incorporated herein by reference and made a part hereof. References herein to any Section or
Article shall be references to a Section or Article of this Transition Agreement unless the context clearly requires otherwise. 
  
 10.11 Dispute Resolution. Article 20, Arbitration, of the Purchase and Sale Agreement shall apply to disputes the Parties relating to or arising
under this Transition Agreement. 
  
 10.12 Conflict. The
parties recognize that this Transition Agreement deals for the most part with matters not dealt with in the Purchase and Sale Agreement or Transfer Agreement, and all of these agreements are to be interpreted together as a whole where possible.
However, if this Transition Agreement is in direct conflict with the Purchase and Sale Agreement or Transfer Agreement, the Purchase and Sale Agreement and Transfer Agreement shall control. 
  
 10.13 Confidentiality. The Parties shall hold and shall each cause
their respective Affiliates, officers, employees, agents, consultants and advisors to hold, in strict confidence and not to disclose or release without the prior written consent of the 
  

 19 

 other Party, any and all Confidential Information (as defined herein); provided, that the Parties may disclose, or may
permit disclosure of, Confidential Information (i) to their respective auditors, attorneys, financial advisors, bankers and other appropriate consultants and advisors who have a need to know such information or (ii) to the extent any of the Parties
is compelled to disclose any such Confidential Information by judicial or administrative process or, in the opinion of legal counsel, by other requirements of law. Notwithstanding the foregoing, if any demand or request for disclosure of
Confidential Information is made pursuant to clause (ii) above, each of the Parties shall promptly notify the other of the existence of such request or demand and shall provide the other a reasonable opportunity to seek an appropriate protective
order or other remedy, which the Parties will cooperate in seeking to obtain. If such appropriate protective order or other remedy is not obtained, the Party whose Confidential Information is required to be disclosed shall furnish, or shall cause
the other Parties to furnish, or cause to be furnished, only that portion of the Confidential Information that is legally required to be disclosed. As used in this Section, “Confidential Information” means all proprietary, technical
or operational information, data or material of one Party that, prior to or following the date of this Transition Agreement, has been disclosed by one Party to another, in written, oral (including by recording), electronic, or visual form to, or
otherwise has come into the possession of, the other, including pursuant to the provisions of this Transition Agreement (except to the extent that such Confidential Information can be shown to have been (a) in the public domain through no fault of
such Party or (b) later lawfully acquired from other sources by the Party to which it was furnished; provided, however, in the case of (b) that, to the knowledge of such Party, such sources did not provide such Information in breach of any
confidentiality obligations). Notwithstanding anything to the contrary set forth herein, the Parties shall be deemed to have satisfied their obligations hereunder with respect to Confidential Information if they exercise the same degree of care (but
no less than a reasonable degree of care) as they take to preserve confidentiality for their own similar Information. 
  
 10.14 Preservation of Legal Privileges. The Parties recognize that the Parties and their Affiliates possess and will possess information and advice
that has been previously developed but is legally protected from disclosure under legal privileges, such as the attorney-client privilege or work product exemption and other concepts of legal protection (“Privilege”). Each Party
recognizes that they shall be jointly entitled to the Privilege with respect to such privileged information and that each shall be entitled to maintain and use for its own benefit all such information and advice, but both Parties shall ensure that
such information is maintained so as to protect the Privileges with respect to the other Party’s interest. To that end no Party will knowingly waive or compromise any Privilege associated with such information and advice without the consent of
the other Parties. If privileged information is required to be disclosed to any arbitrator or mediator in connection with a dispute between the Parties, such disclosure shall not be deemed a waiver of Privilege with respect to such information, and
any Party receiving it in connection with a proceeding shall be informed of its nature and shall be required to safeguard and protect it. 
  
 10.15 Joint Defense Privilege. With respect to asserting and preserving the attorney-client privilege, work product privilege or other applicable
privileges, in 
  

 20 

 connection with matters involving the Common Representation including the performance of Rosetta Retained Liability
Services or any other services provided hereunder relating to any claims by third parties, the Parties acknowledge that each of them has a common interest in the Common Representation. Further, to prepare the Common Representation for trial and
appeal, if necessary, with respect to any of the Sellers Retained Liabilities or such third Party claims each Party acknowledges that it is and will be necessary for the Parties, their Affiliates and their Representatives to share or exchange
certain information with their attorneys and their representatives in the course of investigating and analyzing the facts and circumstances. To protect privileged and confidential information in that process, the Parties agree that privileged
communications will remain privileged under the joint defense doctrine despite this sharing and exchanging of information. The Parties agree that all such information shall be shared or exchanged for solely the purpose of preparing and presenting a
common defense. All Parties agree to protect the confidentiality of such information regardless of the disposition of such matters as to any one Party or the withdrawal of a Party from the Common Representation, and shall not disclose such
information to any other person. Furthermore, no Party shall use any privileged and confidential information obtained pursuant to this Transition Agreement against the other Party in connection with any subsequent controversy or litigation between
the Parties. 
  
 The provisions of Exhibit H, Joint Defense
Agreement, of the Purchase and Sale Agreement shall apply to any claims (“Indemnified Claims”) by a third party, whether presently or hereafter asserted, for which any Party or Parties (collectively the
“Indemnitor”) is obligated to indemnify another Party or Parties ( collectively the “Indemnitee”) under this Transition Agreement. For purposes of the application of the provisions of said Exhibit H to the
Indemnified Claims, (a) “Claims” as used therein, shall mean Indemnified Claims as defined in this Section 10.15, (b) “Indemnitor” as used therein, shall mean Indemnitor as defined in this Section, (c)
“Indemnitee”, as used therein, shall mean Indemnitee as defined in this Section, (d) “Lawsuit” as used therein shall mean the proceeding in which the Indemnified Claims are asserted, (e) “Party
Representative” as used therein shall mean, as to each Party, the person that such Party shall designate from time to time as its representative by written notice to the other Parties, (e) “Effective Date”, as used therein,
shall mean the Closing Date as defined in the Purchase and Sale Agreement and (f) “Law firm” shall mean the reputable attorneys selected and retained by Indemnitor to defend the Indemnified Claims. If a lawsuit or other proceeding
is hereafter filed or instituted in which an Indemnified Claim is asserted against a Party, Indemnitor and Indemnitee shall, at the request of either, promptly execute a separate Joint Defense Agreement, which is substantially in the form of said
Exhibit H, to memorialize the application of this Section to such Indemnified Claim and lawsuit or other proceeding. 
  

 21 

 10.16 Exclusive Remedy; Survival of Indemnity Obligations. The indemnity obligations of the
Parties shall survive the termination of this Transition Agreement and shall be the sole and exclusive remedy of the Parties for any breach arising from or related to this Transition Agreement including the obligations of the other Parties under or
in connection with the providing of services under this Transition Agreement. 
  
 IN WITNESS WHEREOF, the undersigned have executed this Transition Agreement as of the date first written above. 
  

			
	SELLERS:
	
	CALPINE CORPORATION
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	CALPINE FUELS CORP.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ROSETTA:
	
	ROSETTA RESOURCES INC.
		
	By:	 	  

	Name:	 	  

	Title:	 	  

  

 22 

							
	 	 	 	 	CNGLP:
			
	 	 	 	 	CALPINE NATURAL GAS L.P.
				
	 	 	 	 	BY:	 	  

			
	 	 	 	 	ITS GENERAL PARTNER
				
	 	 	 	 	By:	 	  

	 	 	 	 	Name:	 	  

	 	 	 	 	Title:	 	  

		
	SUBJECT COMPANIES	 	 
		
	ROSETTA RESOURCES TEXAS LP	 	ROSETTA RESOURCES CALIFORNIA, LLC
			
	By Rosetta Resources Texas GP, LLC	 	 	 	 
	its General Partner	 	 	 	 
	 	 	 	 	By:	 	  

	 	 	 	 	Name:	 	  

	By:	 	  

	 	Title:	 	  

	Name:	 	  

	 	 	 	 
	Title:	 	  

	 	 	 	 
		
	ROSETTA RESOURCES	 	ROSETTA RESOURCES ROCKIES, LLC
	OFFSHORE, LLC	 	 	 	 
	 	 	 	 	By:	 	  

	By:	 	  

	 	Name:	 	  

	Name:	 	  

	 	Title:	 	  

	Title:	 	  

	 	 	 	 

  

 23 

 ANNEX 1 
  
 Subject Companies 
  
 Rosetta Resources California, LLC 
  
 Rosetta Resources Offshore, LLC 
  
 Rosetta Resources Rockies, LLC 
  
 Rosetta Resources Texas LP 
  
  

 ANNEX 3.3(a) 
  
 Part 1 
  
 To Transition Agreement 
  
 [Description of Information Services] 
  

				
	 Telecom Services
	  	$	26,421.55
	 Data Storage Services
	  	$	2,919.60
	 Outsourcing (SAIC)
	  	$	27,984.43
	 Software Maintenance
	  	$	65,746.93
	 Workforce
	  	$	48,601.95
	 Shared Infrastructure
	  	$	68,889.12
	Total Monthly Fee:	  	$	240,563.58

  
 “Telcom Services” includes
fees associated with voice & data circuits, local/long distance service, cell phone service, communication equipment and conference calls. 
  
 “Data Storage Services” includes fees associated with hardware/software used in data storage. 
  
 “Outsourcing (SAIC)” includes fees associated with SAIC labor fees for helpdesk, desktop, telephone and server support.

  
 “Software Maintenance” includes fees associated with the specific
applications identified in Annex 3.3(a) Part 2. 
  
 “Workforce”
includes fees associated with workforce costs for Calpine IS employees (direct and shared) who support the Buyer’s Business. 
  
 “Shared Infrastructure” includes fees associated with shared infrastructure and is comprised of depreciation and hardware maintenance. 
  
 Standard service hours will be 7:30-5:30 CST M-F. 
  
 Calpine will arrange for the severance of the email systems and any other Calpine information
infrastructure and services. Calpine will take reasonable steps to assist Rosetta in establishing relationships with third party service providers for IS support services, desktop support services, and telecom services (voice, wan & cellular)
and support Rosetta until the third party service providers are established for an interim period up to the term of this Transition Agreement. The Parties will cooperate in the removal of any licensed software (i.e., licensed to Calpine) from
Rosetta’s computers, unless, prior to the Closing Date, the licensor of such software has consented to allow Rosetta to retain the use of such software. Any fees, costs or expenses incurred in obtaining such licenses or consents will be at
Rosetta’s sole cost and expense. Any software licenses currently held by Rosetta will be retained by Rosetta. 

 ANNEX 3.3(a) Part 2 
  
 To Transition Agreement 
  
 [Breakdown by Application of Software Maintenance Fee] 
  

				
	 IHS CD ROM Calif Statewide
	  	$	6,320.00
	 IHS Well CD Calif. Dist 6
	  	$	3,510.00
	 Internet Drilling info subscription (68.PR)
	  	$	5,600.00
	 LANDWKS, P2S
	  	$	16,619.82
	 OLAP MAINT
	  	$	4,330.00
	 P2 ENERGY SOLUTIONS
	  	$	55,673.14
	 Pan System
	  	$	4,050.00
	 Petra
	  	$	15,100.00
	 PI/Dwights Plus Prod CD - Rocky Mtn
	  	$	17,600.00
	 PI/DWIGHTS Plus Prod CD - TX 1-4
	  	$	32,078.00
	 PI/Dwights Well CD - Rocky Mtn
	  	$	14,300.00
	 Power View
	  	$	2,338.00
	 Prism
	  	$	61,846.00
	 Production Access 2.
	  	$	15,800.00
	 Production Access Amort.
	  	$	22,359.48
	 Qbyte Fm & PW Outlook
	  	$	71,180.00
	 RICOH
	  	$	646.58
	 Scada
	  	$	1,500.00
	 SMT
	  	$	50,850.00
	 Tobin Annual Lease Update
	  	$	13,000.00
	 TOBIN annual lse maintenance adj (TX)
	  	$	8,600.00
	 Tobin well updates
	  	$	24,000.00
	 Total Flow (winccu TDS 32)
	  	$	2,000.00
	 TT & Associates, Inc (DVENG)
	  	$	1,800.00
	 Ultimus Workflow
	  	$	21,285.00
	 Velocity surveys databank
	  	$	1,500.00
	 Well Data on CD - TX 1-4
	  	$	30,818.00
	 Well Performance Analysis
	  	$	5,000.00
	 	  	$	788,963.11

 ANNEX 3.4 
  

To Transition Agreement 
  
 [Rosetta Non-Consent Support Services and Rosetta Excluded Property Services] 
  
 (a) Accounting. Rosetta or its Affiliates shall perform all revenue and joint interest accounting functions
attributable to the Properties, including but not limited to: 
  
 (i) payment of accounts payable, 
  
 (ii) collection of accounts receivable, 
  
 (iii) general ledger and financial reporting activities 
  
 cash management, and 
  
 (iv) financial controls and systems. 

 ANNEX 5.2 
  

To Transition Agreement 
  
 MONTHLY SETTLEMENT STATEMENT  
 DURING
TERM HEREOF 
  
 CALCULATION OF CASH TRANSFERRED: 
  

			
	 Standard Joint Interest Billing Statement
	  	 
		
	 Rosetta’s Revenue Check Detail
	  	 
		
	 Service Fee (as per Section 2.1)
	  	$        ·
		
	 Other agreed amounts (as per Section 5.2(g))
	  	·
	 	  	

	 CURRENT MONTH SETTLEMENT
	  	$        ·
	 	  	

 ANNEX 5.3 
  

To Transition Agreement 
  
 [Sample Report per Section 5.3] 

 ANNEX 7.2 
  

To Transition Agreement 
  
 Records as described in Section 7.2: 
  

	1.	Property level tax information 

  

	2.	Production and sales records, well files, reserve data, engineering data, gas balancing 

  

	3.	Cash management and general ledger activities, including accounts receivable and accounts payable 

  

	4.	Revenue Disbursement History 

  

	5.	Names, Addresses, and Tax IDS for all Legal Entities 

  

	6.	Suspended and Deferred Revenues 

  

	7.	Sales, Expense and Financial Ledgers 

  

	8.	Gas Meter Masters for Rosetta-operated properties 

  

	9.	Term and Traditional Gas Contracts 

  

	10.	Term Oil Contracts and Arrangements 

  

	11.	Gas Balances by Well and Owner 

  

	12.	Equipment and Storage Yard Inventory 

  

	13.	Revenue Netting Arrangements and Balances 

  

	14.	Payout Provisions and Balances/Statuses 

  

	15.	Remitter Check Translations 

  

	16.	State Production Reporting Regulatory IDS 

  

	17.	Gas Plant Processing Calculations and Disbursement History

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