Document:

Exhibit 10.1 

 

Execution
Version

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

by and among

 

BISON OIL & GAS PARTNERS II, LLC

 

as Seller,

 

BISON OIL & GAS II, LLC

 

as the Company

 

and

 

CIVITAS RESOURCES, INC.

 

as Buyer

 

Dated as of January 31, 2022

 

     

     

    

 

 

TABLE OF CONTENTS

 

Page

 

	TABLE OF CONTENTS	i
	 	 	 
	LIST OF ANNEXES, EXHIBITS AND SCHEDULES	v
	 	 	 
	MEMBERSHIP INTEREST PURCHASE AGREEMENT	1
	 	 	 
	Article 1 DEFINITIONS	1
	 	 	 
	Section 1.1	Definitions	1
	Section 1.2	Construction	28
	 	 	 
	Article 2 PURCHASE AND SALE TRANSACTION 	28
	 	 	 
	Section 2.1	Purchase and Sale	28
	Section 2.2	Purchase Price	28
	Section 2.3	Adjustment Amount	29
	Section 2.4	Deposit; Escrow	31
	Section 2.5	Closing Statement	31
	Section 2.6	Closing	31
	Section 2.7	Post-Closing Adjustment	32
	Section 2.8	Tax Treatment; Purchase Price Allocation	34
	Section 2.9	Withholding Taxes	34
	Section 2.10	Deliveries at Closing	35
	 	 	 
	Article 3 TITLE MATTERS 	37
	 	 	 
	Section 3.1	Independent Title Review	37
	Section 3.2	Exclusive Rights and Obligations	44
	 	 	 
	Article 4 ENVIRONMENTAL MATTERS 	45
	 	 	 
	Section 4.1	Examination Period	45
	Section 4.2	Access to Oil & Gas Assets and Records	45
	Section 4.3	Notice of Environmental Defects	46
	Section 4.4	Cure of and Remedies for Environmental Defects	47
	Section 4.5	Dispute	47
	Section 4.6	Limitations on Environmental Defects	48
	Section 4.7	Exclusive Rights and Obligations	49
	 	 	 
	Article 5 CASUALTY & CONDEMNATION; CONSENTS 	49
	 	 	 
	Section 5.1	Casualty and Condemnation	49
	Section 5.2	Consents	50

 

    i 

     

    

 

	 	 	 
	Article 6 REPRESENTATIONS AND WARRANTIES REGARDING SELLER 	50
	 	 	 
	Section 6.1	Organization	50
	Section 6.2	Authority	51
	Section 6.3	Enforceability	51
	Section 6.4	Title to Target Interests	51
	Section 6.5	No Violation or Breach	51
	Section 6.6	Brokerage Arrangements	51
	Section 6.7	Investment Intent	52
	Section 6.8	Independent Investment Decision	52
	Section 6.9	Bankruptcy	52
	 	 	 
	Article 7 REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANy 	52
	 	 	 
	Section 7.1	Organization	52
	Section 7.2	Authority; Governing Documents	52
	Section 7.3	Enforceability	53
	Section 7.4	Capitalization	53
	Section 7.5	No Violation or Breach	54
	Section 7.6	Consents; Preferential Rights	54
	Section 7.7	Brokerage Arrangements	54
	Section 7.8	Litigation	54
	Section 7.9	Compliance with Laws	55
	Section 7.10	Financial Statements; Books and Records; Indebtedness	55
	Section 7.11	Undisclosed Liabilities	55
	Section 7.12	No Company Material Adverse Effect; Absence of Changes	56
	Section 7.13	Taxes	56
	Section 7.14	Contracts	58
	Section 7.15	Affiliate Arrangements	58
	Section 7.16	Permits	59
	Section 7.17	Environmental Matters	59
	Section 7.18	Insurance	60
	Section 7.19	Imbalances	60
	Section 7.20	Non-Consent Operations	60
	Section 7.21	Current Commitments	60
	Section 7.22	Suspense Funds	60
	Section 7.23	Payout Balances	60
	Section 7.24	Delivery of Hydrocarbons	61
	Section 7.25	Royalties and Working Interest Payments	61
	Section 7.26	Leases	61
	Section 7.27	Wells and Equipment	61
	Section 7.28	Equipment	62
	Section 7.29	[Reserved]	62
	Section 7.30	Officers and Bank Accounts	62
	Section 7.31	Labor Matters	62
	Section 7.32	Employee Benefit Plans	62
	Section 7.33	Bonds; Letters of Credit and Guarantees	63
	Section 7.34	Special Warranty	63
	Section 7.35	Intellectual Property	64
	Section 7.36	Bankruptcy	64
	Section 7.37	Specified Matters	64

 

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	Article 8 REPRESENTATIONS AND WARRANTIES REGARDING BUYER 	64
	 	 	 
	Section 8.1	Organization	64
	Section 8.2	Authority	64
	Section 8.3	Enforceability	65
	Section 8.4	No Violation or Breach	65
	Section 8.5	Consents	65
	Section 8.6	Litigation	65
	Section 8.7	Bankruptcy	65
	Section 8.8	Brokerage Arrangements	65
	Section 8.9	Solvency	66
	Section 8.10	Funds	66
	Section 8.11	Capitalization	66
	Section 8.12	Buyer Common Stock	67
	Section 8.13	Issuance of Adjusted Stock Consideration	67
	Section 8.14	Buyer SEC Reports; Financial Statements	67
	Section 8.15	NYSE Listing	68
	Section 8.16	Internal Controls and Procedures	68
	Section 8.17	Form S-3	69
	 	 	 
	Article 9 ADDITIONAL AGREEMENTS AND COVENANTS 	69
	 	 	 
	Section 9.1	Interim Covenants; Site Access	69
	Section 9.2	Communications	75
	Section 9.3	Affirmative and Negative Covenants of the Buyer	75
	Section 9.4	Further Assurances	75
	Section 9.5	Confidentiality; Publicity	75
	Section 9.6	Fees and Expenses	76
	Section 9.7	Insurance	76
	Section 9.8	Affiliate Arrangements	77
	Section 9.9	Regulatory Approvals	77
	Section 9.10	Seismic Licenses	78
	Section 9.11	Takeover Laws	78
	Section 9.12	NYSE Listing	79
	Section 9.13	Financial Information	79
	Section 9.14	Seller Names	79
	Section 9.15	Company Hedges	80
	 	 	 
	Article 10 INDEMNIFICATION; LIMITATIONS 	80
	 	 
	Section 10.1	Indemnification	80
	Section 10.2	General Indemnification	81
	Section 10.3	Limitations on Indemnification	82
	Section 10.4	Materiality	83
	Section 10.5	Third Party Claims	83
	Section 10.6	Exclusive Remedy	84
	Section 10.7	Indemnification Payments	85
	Section 10.8	Release	86
	Section 10.9	Holdback	86

 

    iii 

     

    

 

	 	 	 
	Article 11 TAX MATTERS 	87
	 	 	 
	Section 11.1	Proration of Taxes	87
	Section 11.2	Tax Returns	88
	Section 11.3	Transfer Taxes	89
	Section 11.4	Cooperation	89
	Section 11.5	Tax Audits	89
	 	 	 
	Article 12 CONDITIONS TO CLOSING 	89
	 	 	 
	Section 12.1	Conditions to the Obligations of Each Party	89
	Section 12.2	Conditions to Obligations of Buyer	90
	Section 12.3	Conditions to Obligations of Seller and the Company	91
	 	 	 
	Article 13 TERMINATION 	92
	 	 	 
	Section 13.1	Termination	92
	Section 13.2	Effect of Termination	93
	Section 13.3	Specific Performance	95
	 	 	 
	Article 14 OTHER PROVISIONS 	96
	 	 	 
	Section 14.1	Notices	96
	Section 14.2	Governing Law; Consent to Jurisdiction; Waiver of Jury Trial	97
	Section 14.3	Entire Agreement; Amendments and Waivers	98
	Section 14.4	Conflicting Provisions	98
	Section 14.5	Binding Effect, Assignment and Third Party Beneficiaries	99
	Section 14.6	Severability	99
	Section 14.7	Interpretation	99
	Section 14.8	Headings	99
	Section 14.9	Counterparts	99
	Section 14.10	No Recourse	99
	Section 14.11	Disclaimer of Warranties and Representations	100
	Section 14.12	Conflicts and Privilege	103
	Section 14.13	Schedules	104
	Section 14.14	Time is of the Essence	105
	Section 14.15	Non-Compensatory Damages	105

 

    iv 

     

    

 

LIST OF ANNEXES, EXHIBITS AND SCHEDULES

 

	ANNEXES	 
	 	 
	Annex A-1	Leases
	Annex A-2	Wells
	Annex A-3	Fee Minerals
	 	 
	EXHIBITS	 
	 	 
	Exhibit A	Form of Seller Bring Down Certificate
	Exhibit B	Form of Assignment in Lieu of Certificate
	Exhibit C	Form of FIRPTA Certificate
	Exhibit D	Form of Registration Rights Agreement
	Exhibit E	Form of Buyer Bring Down Certificate
	Exhibit F	Form of Officer and Director Release and Resignation
	Exhibit G	Form of Termination Agreement
	Exhibit H	Form of Post-Closing Letter Agreement
	 	 
	SCHEDULES	 
	 	 
	Schedule CH	Company Hedges and Company Hedge Counterparties
	Schedule EA	Excluded Assets
	Schedule PE	Certain Permitted Encumbrances
	Schedule PL	Permitted Leakage
	Schedule WC	Certain Working Capital Matters
	Schedule 2.10(a)(xii)	Post-Closing Letter Agreement Individuals
	Schedule 6.5	No Violation or Breach of Seller
	Schedule 6.6	Brokerage Arrangements
	Schedule 7.5	No Violation or Breach (Company)
	Schedule 7.6	Consents
	Schedule 7.7	Brokerage Arrangements
	Schedule 7.8	Litigation
	Schedule 7.9	Compliance with Laws
	Schedule 7.10(a)	Financial Statements
	Schedule 7.11	Undisclosed Liabilities
	Schedule 7.12(b)	Absence of Changes
	Schedule 7.12(c)	Absence of Consents
	Schedule 7.13	Taxes

 

    v 

     

    

 

	 	 
	Schedule 7.14(a)	Material Contracts
	Schedule 7.15	Affiliate Arrangements
	Schedule 7.17	Environmental Matters
	Schedule 7.17(b)	Unpossessed Environmental Permits
	Schedule 7.18	Insurance
	Schedule 7.19	Imbalances
	Schedule 7.20	Non-Consent Operations
	Schedule 7.21	Current Commitments
	Schedule 7.22	Suspense Funds
	Schedule 7.23	Payout Balances
	Schedule 7.24	Delivery of Hydrocarbons
	Schedule 7.25	Royalties and Working Interest Payments
	Schedule 7.26	No Violation or Breach of Leases
	Schedule 7.27	Non-Permitted Wells
	Schedule 7.30	Officers and Bank Accounts
	Schedule 7.32(c)	Employee Benefit Plans
	Schedule 7.33(a)	Bonds, Letters of Credit
	Schedule 7.33(b)	Funds, Reserves and Escrows
	Schedule 7.33(c)	Support Obligations
	Schedule 7.35	Intellectual Property
	Schedule 7.37	Specified Matters
	Schedule 9.1(b)	Negative Covenants
	Schedule 9.8	Continuing Affiliate Arrangements
	 	 

 

    vi 

     

    

 

MEMBERSHIP INTEREST PURCHASE AGREEMENT

 

THIS MEMBERSHIP INTEREST PURCHASE
AGREEMENT (this “Agreement”), dated as of January 31, 2022 (the “Execution Date”), is by and
among Bison Oil & Gas Partners II, LLC, a Delaware limited liability company (“Seller”), Bison Oil &
Gas II, LLC, a Colorado limited liability company (the “Company”) and Civitas Resources, Inc., a Delaware corporation
(“Buyer”). Seller, the Company and Buyer are each sometimes referred to herein as a “Party” and
collectively as the “Parties.”

 

WHEREAS, Seller owns all of
the issued and outstanding equity interests of the Company (the “Target Interests”); and

 

WHEREAS, effective as of the
Closing (as defined below), and on the terms and conditions set forth in this Agreement, Buyer desires to purchase from Seller, and Seller
desires to sell to Buyer, all of the Target Interests.

 

NOW, THEREFORE, in consideration
of the premises and of the mutual promises, representations, warranties, covenants, conditions and agreements contained herein, and for
other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

Article 1

DEFINITIONS

 

Section 1.1     Definitions.
The terms defined in this Section 1.1 shall have the meanings set forth below for all purposes under this Agreement.

 

“Accounting Firm”
is defined in Section 2.7(c).

 

“Active Worker”
is defined in Section 9.1(b)(xv).

 

“Adjusted Cash Consideration”
is defined in Section 2.2(a).

 

“Adjusted Stock Consideration”
is defined in Section 2.2(b).

 

“Adjustment Amount”
means the resulting calculation (which may result in a positive (+) number or negative (–) number) of the amounts set forth in Section 2.3(a)(i) and
Section 2.3(a)(ii).

 

“AFE” means
any authorization for expenditure or other capital proposal to conduct operations relating to the Oil & Gas Assets.

 

“Affiliate”
means when used with respect to any Person, any other Person that, directly or indirectly, through one or more intermediaries, Controls,
is Controlled by, or is under common Control with, such Person in question; provided, however, that for purposes of this
Agreement, the Parties agree that Taproot Rockies Midstream, LLC, a Delaware limited liability company, is not an Affiliate of Seller
or the Company.

 

    1

     

    

 

  

“Affiliate Arrangements”
is defined in Section 7.15.

 

“Agreement”
is defined in the Preamble.

  

“Allocated Value”
is defined in Section 3.1(c).

 

“Allocation”
is defined in Section 2.8.

 

“Allocation Dispute
Resolution Period” is defined in Section 2.8.

 

“Arbitration Notice”
is defined in Section 12.1(c).

 

“Asset Taxes”
means ad valorem, property, excise, severance, production, sales, use or similar Taxes based upon the acquisition, operation or ownership
of the Oil & Gas Assets or the production of Hydrocarbons or the receipt of proceeds therefrom, but excluding, for the avoidance
of doubt, Income Taxes and Transfer Taxes.

 

“Bank Accounts”
is defined in Section 7.30.

 

“Bison Contact”
is defined in Section 9.1(d).

 

“Bracewell”
is defined in Section 14.12(a).

 

“Business Day”
means any day other than a Saturday, Sunday, or other day on which commercial banks are authorized or required by applicable Law to be
closed in Denver, Colorado.

 

“Buyer”
is defined in the Preamble.

 

“Buyer Capitalization
Date” is defined in Section 8.11.

 

“Buyer Common Stock”
means shares of Buyer’s common stock, having $0.01 par value per share.

 

“Buyer Fundamental
Representations and Warranties” means those representations and warranties of Buyer set forth in Section 8.1, Section 8.2,
Section 8.3, Section 8.4(a), Section 8.11, Section 8.12 and Section 8.13.

 

“Buyer Indemnified
Parties” means Buyer and its current and future Affiliates (including, following the Closing, the Company) and their respective
direct and indirect equityholders, directors, officers, employees, agents, representatives, members, managers, partners, successors and
assigns.

 

    2

     

    

 

“Buyer Material Adverse
Effect” means any change, effect, event or occurrence (for the purposes of this definition, each, an “event”)
(whether foreseeable or not and whether covered by insurance or not) that, individually or in the aggregate, has resulted in, results
in or is reasonably expected to result in, (a) a material adverse effect or change in the business, operations, financial condition
or results of operations of the Buyer and its Subsidiaries, taken as a whole, as currently owned and operated as of the Execution Date,
or (b) a material adverse effect upon the ability of Buyer to consummate the transactions contemplated by, this Agreement; provided,
however, that Buyer Material Adverse Effect shall not include material adverse effects or events resulting from the outbreak or continuation
of or any escalation or worsening of any epidemic, pandemic or disease (including the COVID-19 pandemic), or any Law, directive, pronouncement
or guideline issued by a Governmental Authority who has jurisdiction over Buyer or its Subsidiaries, providing for business closures,
 “sheltering-in-place” or other restrictions that relate to, or arise out of, an epidemic, pandemic or disease outbreak (including
COVID-19 Measures) or any change in such Law, directive, pronouncement or guideline or interpretation thereof; general changes in oil
and gas prices; general changes in markets or in industry, economic, or political conditions; changes in condition or developments generally
applicable to the oil and gas industry generally or in any area or areas where the assets of the Buyer and its Subsidiaries are located;
acts of God, including hurricanes and storms; acts or failures to act of Governmental Authorities (where not caused by the willful or
grossly negligent acts of Seller or the Company); civil unrest or similar disorder; terrorist acts; changes in Laws or delays in issuing,
the failure of any Governmental Authority to issue, or any change in requirements with respect to the issuance of, any licenses, permits,
easements, or approvals, and increased costs relating to the foregoing; events, effects or changes that are cured or no longer exist by
the earlier of the Closing and the termination of this Agreement pursuant to Article 13; and changes resulting from any announcement
of the transactions contemplated hereby or the performance of the covenants set forth in Article 9 hereof.

 

“Buyer SEC Reports”
is defined in Section 8.14.

 

“Cap” is
defined in Section 10.3(c)(i).

 

“Cash Consideration”
is defined in Section 2.2(a).

 

“Cash Equivalents”
means, collectively, the United States Department of Treasury bills and bonds, commercial paper, marketable securities, money market funds,
United States savings bonds and other similar highly-liquid assets.

 

“Casualty Loss”
is defined in Section 5.1.

 

“CBA” any
collective bargaining agreement or other Contract with any labor union, labor organization or other employee representative body.

 

“Claim Deadline”
is defined in Section 3.1(a).

 

“Closing”
is defined in Section 2.6.

 

“Closing Cash Payment”
means an amount in cash equal to the Cash Consideration (i) plus or minus the Adjustment Amount (to the extent the
same adjusts the Cash Consideration as set forth in Section 2.2) set forth in the Closing Statement, and (ii) if applicable,
minus any amounts paid into the Defect Escrow Account pursuant to Section 3.1 or Section 4.4(c).

 

“Closing Date”
is defined in Section 2.6.

 

“Closing Purchase
Price” is defined in Section 2.5.

 

“Closing Statement”
is defined in Section 2.5.

 

    3

     

    

 

“Code”
means the United States Internal Revenue Code of 1986, as amended.

  

“Company”
is defined in the Preamble.

 

“Company Hedge Counterparty”
means each Person listed on Schedule CH.

 

“Company Hedge Liability”
means, with respect to any Company Hedge, the amount that would be owed to the applicable Company Hedge Counterparty, in each case, pursuant
to Section 6(e) of the relevant ISDA Master Agreement if the applicable Company Hedge is broken, unwound or closed-out.

 

“Company Hedges”
means the Hedge Contracts described in Schedule CH.

 

“Company Material
Adverse Effect” means any change, effect, event or occurrence (for the purposes of this definition, each, an “event”)
(whether foreseeable or not and whether covered by insurance or not) that, individually or in the aggregate, has resulted in, results
in or is reasonably expected to result in, (a) a material adverse effect or change in the business, operations, financial condition
or results of operations of the Company, taken as a whole, as currently owned and operated as of the Execution Date, or (b) a material
adverse effect upon the ability of Seller or the Company to consummate the transactions contemplated by, this Agreement; provided,
however, that Company Material Adverse Effect shall not include material adverse effects or events resulting from the outbreak or
continuation of or any escalation or worsening of any epidemic, pandemic or disease (including the COVID-19 pandemic), or any Law, directive,
pronouncement or guideline issued by a Governmental Authority who has jurisdiction over the Company and Seller providing for business
closures, “sheltering-in-place” or other restrictions that relate to, or arise out of, an epidemic, pandemic or disease outbreak
(including COVID-19 Measures) or any change in such Law, directive, pronouncement or guideline or interpretation thereof; general changes
in oil and gas prices; general changes in markets or in industry, economic, or political conditions; changes in condition or developments
generally applicable to the oil and gas industry, generally or in any area or areas where the Oil & Gas Assets are located; acts
of God, including hurricanes and storms; acts or failures to act of Governmental Authorities (where not caused by the willful or grossly
negligent acts of Seller or the Company); civil unrest or similar disorder; terrorist acts; changes in Laws or delays in issuing, the
failure of any Governmental Authority to issue, or any change in requirements with respect to the issuance of, any licenses, permits,
easements, or approvals, and increased costs relating to the foregoing; events, effects or changes that are cured or no longer exist by
the earlier of the Closing and the termination of this Agreement pursuant to Article 13; and changes resulting from any announcement
of the transactions contemplated hereby or the performance of the covenants set forth in Article 9 hereof.

 

“Confidentiality
Agreement” means that certain Confidentiality Agreement, dated as of August 24, 2021 by and between the Company and Bonanza
Creek Energy, Inc. (n/k/a Buyer).

 

“Consent”
means any consent, approval, notice or authorization that is required to be obtained, made or complied with for or in connection with
the sale of the Target Interests, the indirect sale, assignment or transfer of any Oil & Gas Asset, or any interest therein by
Seller as contemplated by this Agreement, or the consummation of the transactions contemplated by this Agreement and the Related Agreements,
in each case, except for notices to co-owners, operators and purchasers of production, or approvals from Governmental Authorities that
are customarily delivered after Closing.

 

    4

     

    

 

“Contracts”
means all of the Company’s right, title and interest in and to any and all contracts, agreements, indentures, commitments, licenses,
consensual obligations, arrangements, permits, promises, or understandings, whether written or oral, excluding (in each case) the Leases
and any other instruments creating any interest in any real property.

 

“Control”
(including its derivatives and similar terms) means possessing, directly or indirectly, the power to direct or cause the direction of
the management and policies of any such relevant Person by ownership of voting interest, by contract or otherwise.

 

“COPAS”
means the Council of Petroleum Accountant Societies of North America.

 

“COVID-19”
means SARS-CoV-2 or COVID-19, and any evolutions thereof or related or associated epidemics, pandemic or disease outbreaks.

 

“COVID-19 Measures”
means any action or inactions taken or plans, procedures or practices adopted (and compliance therewith), in each case, in connection
with or in respect to any Law, order, directive, guidelines or recommendations by any Governmental Authority (including the Centers for
Disease Control and Prevention and the World Health Organization) in connection with or in response to COVID-19, including the Coronavirus
Aid, Relief, and Economic Security Act (CARES) or the Coronavirus Response and Relief Supplemental Appropriations Act of 2021.

 

“Credit Support”
means any cash deposits, guarantees, letters of credit, treasury securities, surety bonds and other forms of credit assurances or credit
support.

 

“Cure Deadline”
is defined in Section 3.1(f).

 

“Defect Escrow Account”
is defined in Section 3.1(f)(i).

 

“Defensible Title”
means that title to the Oil & Gas Interests that, as of the Effective Time and immediately prior to Closing, subject to and except
for Permitted Encumbrances, is deducible of record or title evidenced by unrecorded instruments or elections, made or delivered pursuant
to joint operating agreements, pooling agreements, unitization agreements, other agreements or applicable Law:

 

(a)            with
respect to each Well set forth on Annex A-2, entitles the Company to not less than the Net Revenue Interest set forth in Annex A-2
for such Well throughout the productive life thereof, except (i) decreases in connection with those operations in which the Company
may elect after the Effective Time to be a non-consenting co-owner, (ii) decreases resulting from the reversion of interests to co-owners
with respect to operations in which such co-owners elect, after the Effective Time, not to consent, (iii) decreases resulting from
the establishment or amendment of pools or units or orders of any applicable Governmental Authority that concern pooling, unitization,
communitization, spacing or density matters, in each case, after the Effective Time, (iv) decreases required to allow other Working
Interest owners to make up past underproduction or pipelines to make up past under deliveries, or (v) as stated in Annex A-2;

 

    5

     

    

 

(b)            with
respect to each Well set forth on Annex A-2, obligates the Company to bear a Working Interest for such Well that is not greater
than the Working Interest set forth in Annex A-2 for such Well without increase throughout the productive life of such Well,
except (i) increases resulting from contribution requirements with respect to defaulting or non-consenting co-owners under applicable
operating agreements or applicable Law, (ii) increases that are accompanied by at least a proportionate increase in the Company’s
Net Revenue Interest for such Well, or (iii) as stated in Annex A-2;

  

(c)            with
respect to each Lease set forth on Annex A-1, entitles the Company to ownership of not less than the Net Acres set forth on Annex
A-1 for such Lease, and entitles the Company to not less than the Net Revenue Interest set forth on Annex A-1 for such Lease,
except for, in each case, (i) decreases in connection with those operations in which the Company may elect after the date hereof
to be a non-consenting co-owner, (ii) decreases resulting from reversion of interests to co-owners with respect to operations in
which such co-owners elect, after the Effective Time, not to consent, (iii) decreases resulting from the establishment or amendment
of pools or units or orders of any applicable Governmental Authority that concern pooling, unitization, communitization, spacing or density
matters, in each case, after the Effective Time, (iv) decreases required to allow other Working Interest owners to make up past underproduction
or pipelines to make up past under deliveries, or (v) as otherwise expressly stated in Annex A-1; and

 

(d)            is
free and clear of all Liens.

 

“Deferred Payroll
Taxes” means the amount of any unpaid “applicable employment taxes” (as defined in Section 2302(d)(1) of
the CARES Act) of the Company deferred pursuant to Section 2302 of the CARES Act or the presidential memorandum regarding Deferring
Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster signed on August 8, 2020.

 

“Deposit”
is defined in Section 2.4.

 

“Deposit Escrow Account”
is defined in Section 2.4.

 

“Dispute Notice”
is defined in Section 2.7(b).

 

“Disputed Claims”
is defined in Section 10.9(a).

 

“Effective Time”
means 12:01 a.m. local time where the Oil & Gas Assets are located on January 1, 2022.

 

“Effective Time Working
Capital” means the positive or negative amount of the remainder of (a) the Working Capital Assets minus (b) the Working
Capital Liabilities, as measured and determined for the Effective Time.

 

“Employee Benefit
Plan” is defined in Section 7.32.

 

“Environmental Arbitrator”
is defined in Section 4.5.

 

“Environmental Condition”
means (a) any environmental condition, matter, obligation or circumstance affecting or relating to an individual Oil & Gas
Asset that constitutes a current violation of, or noncompliance with, an Environmental Law, or (b) the existence with respect to
any Oil & Gas Asset of any environmental pollution, contamination or degradation where remedial or corrective action presently
is required under Environmental Laws. For the avoidance of doubt, (a) the mere fact that a Well is no longer capable of producing
sufficient quantities of oil or gas to continue to be classified as a “producing well” or that such a Well should be temporarily
abandoned or permanently plugged and abandoned, in each case, shall not form the basis of an Environmental Condition, (b) the fact
that pipe is temporarily not in use shall not form the basis of an Environmental Condition and (c) except with respect to personal
property (i) that causes or has caused contamination of the environment, including air, soil, subsurface, surface water or groundwater
which is a current violation of Environmental Law, (ii) the use or condition of which is a current violation of Environmental Law,
or has resulted in remedial or corrective action being presently required under Environmental Laws, the physical condition of any surface
or subsurface personal property, including water or oil tanks, separators or other ancillary equipment, shall not form the basis of an
Environmental Condition.

 

    6

     

    

 

“Environmental Deductible
Amount” means an amount equal to two percent (2%) of the Transaction Value.

 

“Environmental Defect”
means any Environmental Condition validly and timely asserted in an Environmental Defect Notice pursuant to Section 4.3(a);
provided that the term “Environmental Defect” does not include any of the foregoing to the extent caused by or relating
to NORM or asbestos (except to the extent that the presence of NORM or asbestos constitutes a current noncompliance with or a current
violation of Environmental Law, or a remedial or corrective action is presently required under Environmental Laws) or any matter otherwise
expressly disclosed in Schedule 7.17.

 

“Environmental Defect
Amount” means with respect to an Environmental Defect, the present value as of the Closing Date of the Lowest Cost Response
of such Environmental Defect (net of the Company’s interest).

 

“Environmental Defect
Notice” is defined in Section 4.3(a).

 

“Environmental Defect
Property” is defined in Section 4.3(b)(ii).

 

“Environmental Laws”
means all applicable federal, state, and local Laws in effect as of the Execution Date relating to human health or safety (regarding exposure
to Hazardous Materials), pollution or the protection of the environment or natural resources and all regulations implementing the foregoing,
including those Laws relating to the storage, emission, handling, and use of Hazardous Materials, and those Laws relating to the generation,
processing, treatment, storage, transportation, release and disposal thereof. Notwithstanding anything in this Agreement to the contrary,
the term “Environmental Laws” does not include (a) prudent, good or desirable operating practices, policies, statements
or standards that may be voluntarily employed or adopted by other oil and gas well operators, in each case that are not required by any
Law or Governmental Authority, or (b) the provisions of the Occupational Safety and Health Act of 1970, 29 U.S.C. § 651 et
seq., as amended, to the extent relating to matters other than pollution or the protection of the environment or biological or natural
resources or exposure to Hazardous Materials.

 

    7

     

    

 

“Environmental Liabilities”
means all Losses (including remedial, removal, response, clean-up, investigation or monitoring costs), consulting fees, orphan share,
pre-judgment and post-judgment interest, court costs, and other damages incurred or imposed in connection with, or resulting from or attributable
to, (a) any actual release of Hazardous Materials into the environment or resulting from or attributable to exposure to Hazardous
Materials; (b) the generation, manufacture, processing, distribution, use, treatment, storage, release, transport or handling of
Hazardous Materials; or (c) any order, notice of responsibility, directive (including requirements under Environmental Laws), injunction,
judgement or similar act (including settlements) by any Governmental Authority or court of competent jurisdiction, or any claim or cause
of action by a Governmental Authority or other Person for personal injury, property damage, damage to natural resources, remediation or
response costs, in each case, to the extent arising out of any violation of, or any remediation obligation under, Environmental Laws.

 

“Environmental Permit”
means any Permit required by or issued under Environmental Laws.

 

“Environmental Threshold
Amount” is defined in Section 4.6(a).

 

“Equipment”
means all of the Company’s right, title and interest in and to any wellhead equipment, flowlines, pipelines, compression equipment,
injection facilities, saltwater disposal facilities, and other equipment, fixtures or machinery of any kind or character.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder.

 

“Escrow Agent”
means JP Morgan, N.A.

 

“Escrow Agreement”
means the Escrow Agreement among Buyer, Seller and the Escrow Agent.

 

“Examination Period”
is defined in Section 3.1(a).

 

“Excess Amount”
is defined in Section 2.7(e).

 

“Exchange Act”
means the Securities Exchange Act of 1934, as amended, and the rules and regulations of the SEC promulgated thereunder.

 

“Execution Date”
is defined in the Preamble.

 

“Existing Credit
Agreement” means that certain Credit Agreement, dated as of September 27, 2019, by and among Seller, as borrower, the guarantors
from time to time party thereto, the lenders party thereto and Wilmington Trust, National Association, as administrative agent, as amended.

 

    8

     

    

 

“Existing Credit
Agreement Payoff Amount” means the total amounts payable pursuant to the Existing Credit Agreement to fully satisfy all principal,
interest, fees, costs, and expenses owed thereunder as of the anticipated Closing Date, as the same is set forth in the Payoff Letter.

  

“Fee Minerals”
means any and all Hydrocarbon and mineral fee interests owned by the Company, including those fee minerals set forth on Annex A-3.

 

“Final Purchase Price”
means the Purchase Price as finally determined pursuant to Section 2.7, subject to the final disbursement of any amounts paid
into the Defect Escrow Account pursuant to the terms of this Agreement.

 

“Final Release Disputed
Claims” is defined in Section 10.9(a).

 

“Financial Statements”
is defined in Section 7.10(a).

 

“Fraud”
means, with respect to any Person, an actual, intentional and knowing misrepresentation with respect to any statement in any representation
or warranty set forth in Article 6, Article 7 or Article 8 (as applicable and in each case as qualified
by the Schedules to this Agreement) or in the certificate delivered pursuant to Section 2.10(a)(i) or Section 2.10(b)(i),
in each case, on which another Party to this Agreement relies to its detriment; provided, however, that, with respect to
any Person, such actual, intentional and knowing misrepresentation shall only be deemed to exist if such Person (and, only if one or more
of the individuals listed in the definition of “Knowledge”) has (a) actual knowledge (as opposed to imputed or constructive
knowledge) on the date hereof, in the case of any representation or warranty set forth in Article 6, Article 7
or Article 8 (as applicable and in each case as qualified by the Schedules) or, at the Closing, in the case of the certificates
delivered pursuant to Section 2.10(a)(i) or Section 2.10(b)(i), that such representations and warranties
were actually breached on the date hereof, in the case of any representation or warranty set forth in, Article 6, Article 7
or Article 8 (as applicable and in each case as qualified by the Schedules) or, at the Closing, in the case of the certificates
delivered pursuant to Section 2.10(a)(i) or Section 2.10(b)(i), and (b) the actual and specific intent
that the other Party rely on such misrepresentation.

 

“GAAP”
means accounting principles generally accepted in the United States as in effect from time to time.

 

“Governing Documents”
means the documents by which any Person (other than an individual) establishes its legal existence or that govern its internal affairs,
including: (a) the articles or certificate of incorporation and the bylaws of a corporation; (b) the partnership agreement and
any statement of partnership of a general partnership; (c) the limited partnership agreement and the certificate of limited partnership
of a limited partnership; (d) the certificate of formation and the limited liability company agreement or, if applicable, operating
agreement of a limited liability company; (e) any similar charter or operating document adopted or filed in connection with the creation,
formation or organization of a Person; and (f) any amendment, modification, restatement, supplement, certificate of designations
or similar to any of the foregoing.

 

    9

     

    

 

“Governmental Approval”
means any consent, certification, approval, permit, exemption or variance of, to, by or with, any Governmental Authority pertaining to
the consummation of the transactions contemplated by this Agreement.

  

“Governmental Authority”
means any legislature, court, tribunal, authority, agency, department, commission, division, board, bureau, branch, official or other
instrumentality of the U.S., or any domestic state, county, city, tribal or other political subdivision, governmental department or similar
governing entity, and including any governmental, quasi-governmental, regulatory or administrative body.

 

“Hazardous Materials”
means any material, substance or waste, whether solid, liquid, or gaseous: (a) which is regulated as a “hazardous material,”
 “hazardous waste,” “hazardous substance,” “toxic substance,” “pollutant,” or “contaminant”
under any Environmental Law; or (b) for which liability or standards of conduct may be imposed under any Environmental Law, including
Hydrocarbons, petroleum and petroleum by-products, NORM, asbestos or asbestos-containing materials, polychlorinated biphenyls, per- and
polyfluoroalkyl substances and lead.

 

“Hedge Contracts”
means any forward, futures, swap, collar, put, call, floor, cap, option or other similar Contract (excluding, for the avoidance of doubt,
any physically settled Contract, including index, fixed price or physical basis transactions) to which the Company is a party that is
intended to benefit from or reduce or eliminate the risk of fluctuations in the price of commodities, including any Hydrocarbons or other
commodities, currencies, interest rates and indices, and any financial transmission rights and auction revenue rights.

 

“Hedge Transfer Fees”
means any fees, costs, expenses or charges expressly payable or required to be paid under the terms of any Company Hedge to any Company
Hedge Counterparty and/or the transferee as a result of the novation of any Company Hedge.

 

“Holdback Period”
means the period from and after the Closing Date up to the date that is twelve (12) months following the Closing Date.

 

“HSR Act”
is defined in Section 7.6.

 

“Hydrocarbons”
means crude oil, gas, casinghead gas, condensate, natural gas liquids, and other gaseous or liquid hydrocarbons (including ethane, propane,
iso-butane, nor-butane, gasoline, and scrubber liquids) of any type and chemical composition produced from and attributable to the Oil &
Gas Assets.

 

“Imbalance”
means any imbalance at the (a) wellhead between the amount of Hydrocarbons produced from a Well and allocable to the interests of
the Company therein and the shares of production from the relevant Well to which the Company is entitled or (b) pipeline flange between
the amount of Hydrocarbons nominated by or allocated to the Company and the Hydrocarbons actually delivered on behalf of the Company at
that point.

 

“Income Taxes”
means income, capital gain, franchise and similar Taxes based upon, measured by or calculated with respect to gross or net income, profits,
capital or similar measures (or multiple bases, including corporate, franchise, business and occupation, business license or similar Taxes,
if gross or net income, profits, capital or a similar measure is one of the bases on which such Tax is based, measured or calculated).

 

    10

     

    

 

“Indebtedness for
Borrowed Money” means (without duplication), at any time of determination, whether or not contingent and whether secured or
unsecured, (a) all indebtedness of the Company or Seller for borrowed money or indebtedness issued or incurred by or on behalf of
the Company in substitution or exchange for indebtedness for borrowed money, including all outstanding principal and accrued and unpaid
interest, premium, and penalties, evidenced by bonds, debentures, notes, or other similar instruments required to be reflected as indebtedness
on a consolidated balance sheet of such Person and its consolidated Subsidiaries prepared in accordance with GAAP as of such date; (b) indebtedness
of the type described in the other clauses of this definition that is guaranteed, directly or indirectly, in any manner by such Company
or Seller, as applicable, or for which such Company or Seller, as applicable, may be liable, but excluding endorsements of checks and
other similar instruments in the ordinary course of business; (c) interest expense accrued but unpaid on or relating to any of such
indebtedness described in the other clauses of this definition; (d) obligations issued or assumed as the deferred purchase price
of property or services, including all conditional sales obligations, of such Person and all obligations of such Person under any title
retention agreement, any “earn out”, contingent consideration or similar payments or obligations; (e) reimbursement obligations
of such Person in respect of drawn letters of credit or similar instruments issued or accepted by banks and other financial institutions
for the account of such Person; and (f) all obligations of such Person under leases required to be capitalized by GAAP. To the extent
any Indebtedness for Borrowed Money will be retired or discharged at the Closing, “Indebtedness for Borrowed Money”
shall also include any and all amounts necessary and sufficient to retire such indebtedness, including principal (including the current
portion thereof) and/or scheduled payments, accrued interest or finance charges, and other fees, penalties or payments (prepayment or
otherwise) necessary and sufficient to retire such Indebtedness for Borrowed Money at Closing. “Indebtedness for Borrowed Money”
will not include (i) any liabilities to the extent included in the determination of Effective Time Working Capital, (ii) any
Transaction Expenses or (iii) any obligations under Company Hedges.

 

“Indemnified Party”
means a Person with indemnification rights or benefits under Article 10, or otherwise under this Agreement.

 

“Indemnitee”
is defined in Section 10.2.

 

“Indemnitor”
is defined in Section 10.3(b).

 

“Indemnity Response
Period” is defined in Section 10.2.

 

“Independent Environmental
Review” is defined in Section 4.1.

 

“Independent Title
Review” is defined in Section 3.1(a).

 

“Intellectual Property”
means the following intellectual property rights, both statutory and under common law: (a) works of authorship and copyrights, registrations
and applications for registration thereof and all associated renewals; (b) trademarks, service marks, trade names, slogans, domain
names, logos, trade dress, and registrations and applications for registrations thereof; (c) inventions and patents, as well as any
reissued and reexamined patents and extensions corresponding to the patents, and any patent applications and disclosures, as well as any
related continuation, continuation in part and divisional applications and patents issuing therefrom; (d) trade secrets, including
ideas, designs, concepts, compilations of information, methods, techniques, procedures, processes and other know-how, whether or not patentable;
(e) mask works and registrations and applications therefor; (f) rights in industrial and other protected designs and any registrations
and applications therefor; and (g) goodwill associated with any of the foregoing.

 

    11

     

    

 

“Interim Financial
Statements” is defined in Section 7.10(a).

 

“IRS” is
defined in Section 2.8.

 

“Kirkland”
is defined in Section 14.12(b).

 

“Knowledge”
means all facts actually known by those individuals specified in clause (a) or (b) below, as the case may be,
as of the Execution Date, without independent investigation (and shall in no event encompass constructive, imputed or similar concepts
of knowledge): (a) in the case of Seller or the Company, John Austin Akers, David Gonzales, Jesse Irvin and Robert Pierini and (b) in
the case of Buyer, Eric Greager, Matt Owens, Marianella Foschi, Sandi Garbiso, Dean Tinsley, Brian Cain and Skip Marter.

 

“Laws”
means all federal, state and local statutes, laws (including common law), rules, regulations, acts, codes, orders, ordinances, licenses,
writs, injunctions, judgments, rulings, subpoenas, awards and decrees or writs and other legally enforceable requirements enacted, adopted,
issued or promulgated by any Governmental Authority.

 

“Leakage”
means any of the following, without duplication, made by the Company to the extent occurring during the period after the Effective Time
and prior to Closing, but excluding any Permitted Leakage: (a) any dividend or distribution of profits or assets (whether in cash
or in kind) declared, paid or made (whether actual or deemed) by the Company to Seller or any other Person in respect of any share capital,
loan capital or other Securities of the Company, or otherwise; (b) entering into any Contracts with, or for the benefit of, Seller
or any of Seller’s Affiliates; (c) any payments made or agreed to be made by the Company to Seller or any of its Affiliates;
(d) the making of any gift or other gratuitous payment; and (e) the payment of any Transaction Expenses on behalf of or for
the benefit of Seller or its Affiliates prior to Closing.

 

“Leases”
means all of the Company’s right, title and interest in and to all oil, gas and/or mineral leases (including all leasehold
interests, sublease interests, farmout interests, Royalties (including Royalties derived from Fee Minerals) and other types of mineral
interests other than Fee Minerals), including those Leases set forth on Annex A-1, and including any rights to acquire any of the
foregoing.

 

“Lien”
means any mortgage, deed of trust, lien, charge, security interest, pledge or other similar encumbrance.

 

“Losses”
means all losses, costs, liabilities, obligations, expenses, Taxes, fines, penalties, interest, payments, charges, Indebtedness for
Borrowed Money, expenditures, claims, awards, settlements, judgments, damages, reasonable and documented out-of-pocket attorneys’
fees and reasonable and documented out-of-pocket expenses of investigating, defending and prosecuting litigation, including liabilities,
costs, losses and damages for personal injury or death or property damage.

 

    12

     

    

 

“Lowest Cost Response”
means the response required or allowed under Environmental Laws that cures, remediates, removes, addresses or remedies (for current and
future use in the same manner as currently used) an Environmental Condition or Environmental Defect, in the most cost-effective manner
(taken as a whole, taking into consideration any direct expenses, liabilities or Losses that are reasonably expected to arise as a result
of such response) as compared to any other response that is required or allowed under Environmental Laws. The Lowest Cost Response shall
include taking no action, leaving the condition unaddressed, periodic monitoring or the recording of notices in lieu of remediation, if
such responses are allowed under Environmental Laws and do not unreasonably interfere with the continued use (in the same manner as currently
used) of the subject property, provided that the Lowest Cost Response shall always include remediation required by any Governmental
Authority under Environmental Law. The Lowest Cost Response shall not include (a) the costs of the Buyer’s or any of its Affiliate’s
employees, project manager(s) or attorneys; (b) expenses for matters that are costs of doing business (e.g., those costs
that would ordinarily be incurred in the day-to-day operations of the Oil & Gas Assets, or in connection with permit renewal/amendment
activities); (c) overhead costs of the Buyer or its Affiliates; (d) costs and expenses that would not have been required under
Environmental Laws as they exist on the Execution Date; (e) any costs or expenses relating to any obligations to plug, abandon or
decommission wells located on or comprising part of the Oil & Gas Assets in the ordinary course of business, and not as a result
of the applicable Environmental Condition or Environmental Defect; or (f) the assessment, remediation, removal, abatement, transportation,
disposal, or any other corrective actions of any asbestos, asbestos-containing materials or NORM that may be present in or on the Oil &
Gas Assets (unless such assessment, remediation, removal, abatement, transportation, disposal, or any other corrective actions is currently
required by any Governmental Authority under Environmental Law).

 

“Material Contract”
means any Contract which is one or more of the following types:

 

(a)            Contracts
between the Company and any Affiliate of the Company;

 

(b)            Contracts
for the sale, purchase, exchange, or other disposition of Hydrocarbons which are not cancelable without penalty to the Company, its Affiliates,
or its or their permitted successors and assigns, on sixty (60) days or less prior written notice;

 

(c)            Contracts
of the Company to sell, lease, farmout, exchange, or otherwise dispose of all or any part of the Oil & Gas Assets after Closing,
but excluding right of reassignment upon intent to abandon an Oil & Gas Asset;

 

(d)            Contracts
for the gathering, treatment, processing, storage or transportation of Hydrocarbons guaranteed with minimum throughput requirements, which
are not cancelable without penalty to the Company, its Affiliates, or its or their permitted successors and assigns, on sixty (60) days
or less prior written notice;

 

    13

     

    

 

(e)            any
Contract (i) evidencing Indebtedness for Borrowed Money binding on the Company or the Oil & Gas Assets after the Closing
or (ii) granting any Liens over any material asset of the Company (other than the Contracts provided for in clause (h)  below);

 

(f)            any
Contract guaranteeing any obligation of another Person;

 

(g)            any
Contract (other than confidentiality or similar agreements entered into in the ordinary course of business) that prohibits or materially
restricts the Company from competing in any jurisdiction, including any Contract that (i) contains or constitutes an existing area
of mutual interest agreement or an agreement to enter into an area of mutual interest agreement in the future, (ii) includes non-competition
restrictions or other similar restrictions on doing business applicable to the Company or (iii) otherwise purports to limit or prohibit
the freedom of the Company (or, after the Closing, that purports to so limit or restrict the Company) to, or the manner in which, or the
locations in which, the Company may, (A) conduct business as presently conducted, (B) engage or compete in any activity or line
of business in any area, (C) obtain products or services from any Person or (D) set prices and terms for the provision, sale,
lease or license of its products, services or technologies;

 

(h)            any
participation agreement, joint development agreement, area of mutual interest agreement, joint operating agreement, exploration agreement,
data license agreement, seismic license agreement, acreage dedication agreement, farmout/farmin agreement, exchange agreement or similar
material Contract containing existing operating obligations of the Company;

 

(i)            any
Contract that constitutes a partnership agreement, joint venture agreement or similar Contract;

 

(j)            any
Contract for which the primary purpose is to provide for the indemnification of another Person;

 

(k)            any
Contract that would obligate the Company to drill additional wells or conduct other material development operations after the Closing;

 

(l)            any
Contract that is a seismic or other geophysical acquisition agreement or license;

 

(m)            any
Hedge Contract;

 

(n)            any
Contract which contains a “take-or-pay” clause or any similar obligation;

 

(o)            any
Contract which contains any “earn out” or other contingent payment obligations with respect to a prior or pending acquisition
or sale of any business, assets or properties, or remaining indemnity or similar obligations under any acquisition or sale agreement,
that could reasonably be expected to result in future payments by or to the Company in excess of one million dollars ($1,000,000);

 

    14

     

    

 

(p)            any
Contract which expressly limits or restricts the ability of the Company to make distributions or declare or pay dividends in respect of
their Membership Interests or Securities, as the case may be;

  

(q)            any
Contract which is between the Company, on the one hand, and any of their respective officers, directors or principals (or any such Person’s
Affiliates) or any Person that holds or owns shares of the Company’s capital stock (or any Affiliates of any such Person), on the
other hand, except for employment, consulting, individual engagement, confidentiality, invention assignment, non-competition agreements
or similar agreements, in all cases, entered into in the ordinary course of business;

 

(r)            any
Contract which is a settlement, settlement agreement, consent agreement or similar agreement with any Governmental Authority involving
future performance by the Company which is material to the Company, taken as a whole;

 

(s)            Contracts
which (x) can reasonably be expected to result in gross revenue per fiscal year in excess of one hundred seventy-five thousand dollars
($175,000), net to the interests of the Company; (y) can reasonably be expected to result in expenditures per fiscal year in excess
of one hundred seventy-five thousand dollars ($175,000), net to the interests of the Company; or (z) can reasonably be expected to
result in one million dollars ($1,000,000) of expenditures or revenues in the aggregate over the life of such Contract;

 

(t)            any
Contracts relating to the pending acquisition (by merger, purchase of equity or assets or otherwise) by the Company of any operating business
or the capital stock of any other Person;

 

(u)            any
CBA to which the Company is a party or otherwise bound; or

 

(v)            any
stockholders, investors rights, registration rights or similar Contract.

 

“Membership Interests”
means, with respect to a Person, the membership interests, limited liability company interests, other equity interests, rights to profits
or revenue and any other similar interest, and any Security or other interest convertible into the foregoing, or any right (contingent
or otherwise) to acquire any of the foregoing, of such Person.

 

“Net Acres”
means, as calculated separately with respect to each Lease, INSOFAR AND ONLY INSOFAR as such Lease covers the depths within the Target
Interval (or is otherwise expressly depth limited within the Target Interval as expressly set forth on Annex A-1), (a) the
number of gross acres of land covered by such Lease as to the Target Interval, multiplied by (b) the lessor’s undivided fee
simple mineral interests (expressed as a percentage) in, on and under the lands covered by such Lease, multiplied by (c) the Company’s
Working Interest in such Lease; provided, however, if items (b) and (c) vary as to different areas
of, or depths under the lands covered by such Lease, a separate calculation shall be performed with respect to each such area or depth.

 

“Net Revenue Interest”
means, (a) with respect to any Well, the Company’s interest (expressed as a percentage or a decimal) in and to the Hydrocarbons
produced and saved or sold from or allocated to such Well from those formations from which such Well is currently producing, or with respect
to a Well that is not currently producing, the last depth or formation at which it produced, or (b) with respect to any Lease, INSOFAR
AND ONLY INSOFAR as such Lease covers the depths within the Target Interval (or is otherwise expressly depth limited within the Target
Interval as expressly set forth on Annex A-1), the Company’s interest (expressed as a percentage or a decimal) in and to
the Hydrocarbons produced and saved or sold from or allocated to such Lease, in each case of items (a) and (b), after
giving effect to all Royalties therefrom which are held by Persons other than the Company.

 

    15

     

    

  

“NORM”
is defined in Section 14.11(d).

 

“Notice”
has the meaning set forth in Section 14.1(a).

 

“Novation Agreements”
mean, collectively, each novation agreement substantially in the form of the ISDA Novation Agreement by and among a Company Hedge Counterparty,
the Company and a transferee designated by Buyer.

 

“NYSE”
means the New York Stock Exchange.

 

“Oil & Gas
Assets” means, without duplication: (a) all Leases and Fee Minerals held by the Company, and all right, title and interest
of the Company attributable or allocable thereby by virtue of any and all pooling, unitization, communitization and operating agreements
(including the Leases set forth on Annex A-1 and the Fee Minerals set forth on Annex A-3); (b) all Wells of the Company
(including the Wells set forth on Annex A-2); (c) all rights and interests in, under or derived from all unitization and pooling
agreements, declarations and orders in effect with respect to any of the Leases, Wells, and Fee Minerals and the units created thereby
(the “Units”) (the Oil & Gas Assets as described in clauses (a), (b) and (c) respectively,
collectively, the “Oil & Gas Interests”); (d) all of the Company’s right, title and interest in
and to (i) all lands covered by or subject to the Oil & Gas Interests and all Royalties applicable to the Oil &
Gas Interests and (ii) all rights with respect to the use and occupancy of the surface and subsurface depths under such lands; (e) all
of the Company’s right, title and interest in and to all real and personal property located in or upon such lands or used in connection
with the exploration, development or operation of the Oil & Gas Interests; (f) all Contracts related to the Oil &
Gas Interests, including any rights of the Company under any joint operating agreement, joint exploration agreement, farmin and farmout
agreements, area of mutual interest agreement or similar agreement; (g) all Equipment; (h) the Rights-of-Way; and (i) the
Hydrocarbons produced from the Oil & Gas Interests or allocated thereto from and after the Effective Time.

 

“Oil & Gas
Interests” has the meaning set forth in the definition of Oil & Gas Assets.

 

“Party”
and “Parties” are each defined in the Preamble.

 

“Party Affiliate”
is defined in Section 14.10.

 

“Payoff Letter”
is defined in Section 2.10(a)(x).

 

“PC Statement Purchase
Price” is defined in Section 2.7(b).

 

    16

     

    

 

 

“Permit”
means any license, authorization, lease, approval of lease assignment, notice, franchise, permit, designation, plan, certificate, approval,
registration, conditions, or similar authorization necessary to own or operate the Oil & Gas Assets (in each case) from or with
a Governmental Authority, other than the Leases.

 

“Permitted Encumbrance”
means any or all of the following:

 

(a)            lessors’
royalties and any overriding royalties, reversionary interests, back-in interests, and other burdens to the extent that they do not,
individually or in the aggregate (i) reduce the Company’s Net Revenue Interest or Net Acre ownership in any Oil &
Gas Interest below that shown in Annex A-1 or Annex A-2 for such Lease or Well, (ii) increase the Company’s
Working Interest in any Well above that shown in Annex A-2 for such Well without a corresponding increase in the Net Revenue
Interest, or (iii) materially impair or interfere with the operation or use of the Oil & Gas Assets (as currently operated
by Company);

 

(b)            the
terms of all Leases, Contracts listed on Schedule 7.14(a), Rights-of-Way, and any other agreements applicable to the Oil &
Gas Assets, including provisions for obligations, penalties, suspensions, or forfeitures contained therein, to the extent that they do
not, in the absence of non-consent elections or default, individually or in the aggregate, (i) reduce the Company’s Net Revenue
Interest or Net Acre ownership in any Oil & Gas Interest below that shown in Annex A-1 or Annex A-2
for such Oil & Gas Interest, (ii) increase the Company’s Working Interest in any Well above that shown in Annex A-2,
for such Well without a corresponding increase in Net Revenue Interest or (iii) materially impair or interfere with the operation
or use of the Oil & Gas Assets (as currently used or operated by the Company);

 

(c)            rights
of first refusal, preferential rights to purchase, and similar rights with respect to the Oil & Gas Assets, but only to the
extent set forth on the Schedules or Annexes to this Agreement or that are not triggered by the transactions contemplated by this Agreement;

 

(d)            Third
Party consent requirements and similar restrictions (i) that are not applicable to the transactions contemplated by this Agreement,
(ii) if written waivers or consents are obtained from the appropriate Persons prior to the Closing Date, (iii) if the appropriate
time period for asserting the right has expired, or (iv) that need not be satisfied prior to a transfer of such Oil & Gas
Asset;

 

(e)            liens
for Taxes not yet delinquent or, if delinquent, which are being contested in good faith by appropriate actions (all such liens or charges
being contested in good faith are set forth on Schedule PE) and, in each case, for which adequate reserves have been established
in accordance with GAAP;

 

(f)             liens
created under the terms of the Leases, Contracts or Rights-of-Way that, in each case, are for amounts not yet delinquent (including any
amounts being withheld as provided by Law), or if delinquent, being contested in good faith by appropriate actions (all such liens or
charges being contested in good faith are set forth on Schedule PE);

 

    17

     

    

 

(g)            materialman’s,
warehouseman’s, workman’s, carrier’s, mechanic’s, vendor’s, repairman’s, employee’s, contractor’s,
operator’s liens, construction liens and other similar liens arising in the ordinary course of business for amounts not yet delinquent
(including any amounts being withheld as provided by Law), or, if delinquent, being contested in good faith by appropriate actions (all
such liens or charges being contested in good faith are set forth on Schedule PE);

 

(h)            all
rights to consent, and any required notices to, filings with, or other actions by Governmental Authorities in connection with the sale
or conveyance of oil and gas leases or rights or interests therein if they are customarily obtained subsequent to the sale or conveyance
of such leases, rights or interests;

 

(i)              failure
to record Leases issued by any Governmental Authority in the real property, conveyance, or other records of the county in which such
Leases are located, provided that the instruments evidencing the conveyance of such title to the Company from its immediate predecessor
in title are recorded with the Governmental Authority that issued any such Lease or the delay or failure of any Governmental Authority
to approve the assignment of any Lease to Seller or any predecessor in title to Seller unless such approval has been expressly denied
or rejected in writing by such Governmental Authority;

 

(j)             except
to the extent triggered on or prior to the Closing Date, conventional rights of reassignment arising upon the expiration or final intention
to abandon or release any of the Oil & Gas Assets;

 

(k)            easements,
rights-of-way, covenants, servitudes, permits, surface leases, conditions, restrictions, and other rights included in or burdening the
Oil & Gas Assets for the purpose of surface or subsurface operations, roads, alleys, highways, railways, pipelines, transmission
lines, transportation lines, distribution lines, power lines, telephone lines, removal of timber, grazing, logging operations, canals,
ditches, reservoirs, and other like purposes, or for the joint or common use of real estate, rights-of-way, facilities, and equipment,
in each case, to the extent they do not, individually or in the aggregate (i) reduce the Company’s Net Revenue Interest or
Net Acre ownership in any Oil & Gas Interest below that shown in Annex A-1 or Annex A-2 for such Oil &
Gas Interest, (ii) increase the Company’s Working Interest in any Well above that shown in Annex A-2, for such
Well without a corresponding increase in Net Revenue Interest or (iii) materially impair or interfere with the operation or use
of the Oil & Gas Assets (as currently used or operated by the Company);

 

(l)              rights
of a common owner of any interest in Rights-of-Way held by the Company, to the extent that the same do not, individually or in the aggregate
(i) reduce the Company’s Net Revenue Interest or Net Acre ownership in any Oil & Gas Interest below that shown in
Annex A-1 or Annex A-2 for such Oil & Gas Interest, (ii) increase the Company’s Working Interest
in any Well above that shown in Annex A-2 for such Well without a corresponding increase in Net Revenue Interest or (iii) materially
impair or interfere with the operation or use of the Oil & Gas Assets (as currently used or operated by the Company);

 

    18

     

    

 

(m)            any
lien, charge, or other encumbrance which is expressly waived, assumed, bonded, or paid by Buyer or for which the underlying obligation
associated therewith is required to be paid by Buyer, in each case, on or prior to Closing or which is discharged by the Company (or
one of its Affiliates) at or prior to Closing;

 

(n)            failure
to recite marital status in a document or omissions of successors or heirship or estate proceedings, absent affirmative evidence of a
superior or competing claim of title from a Third Party attributable to such matter;

 

(o)            defects
arising out of a lack of a survey, unless a survey is required by Law;

 

(p)            defects
based solely on a lack of available production records that arise as a consequence of any alleged failure to conduct operations, cessation
of production, insufficient production over any period of time or any failure to report production (or timely report production) over
any period of time, unless Buyer provides affirmative evidence (by means other than merely a lack of available production records) that
the alleged failure to conduct operations, cessation of production, insufficient production, or failure to report has terminated or given
rise to a right of the applicable lessor to terminate the underlying Lease (which evidence shall be included in the applicable Title
Defect Notice);

 

(q)            any
failure to conduct operations, cessation of production or insufficient production over any period of time to the extent (i) the
Company has received an acknowledgement from the applicable lessor(s) that such Oil & Gas Interest has not terminated,
or (ii) the Company is prohibited from conducting operations with respect to any Oil & Gas Interest pursuant to an order,
decree, stay or ruling by an applicable Governmental Authority;

 

(r)             all
applicable Laws and rights reserved to or vested in any Governmental Authorities (i) to control or regulate any Oil & Gas
Asset in any manner (excluding eminent domain or condemnation), (ii) to assess Tax with respect to the Oil & Gas Assets,
the ownership, use or operation thereof, or revenue, income or capital gains with respect thereto, (iii)  by the terms of any
right, power, franchise, grant, license or permit, or by any provision of Law, to terminate such right, power, franchise grant, license
or permit or to purchase, condemn, expropriate or recapture or to designate a purchaser of any of the Oil & Gas Assets, (iv) to
use any Oil & Gas Asset in a manner which does not materially impair the use of such Oil & Gas Asset for the purposes
for which it is currently used, owned and operated as of the Execution Date, or (v) to enforce any obligations or duties affecting
the Oil & Gas Assets to any Governmental Authority, with respect to any franchise, grant, license or permit;

 

(s)            any
lien not yet delinquent or, if delinquent, which is being contested in good faith, or trust, arising in connection with workers’
compensation, unemployment insurance, pension, or employment Laws or regulations (all such liens or charges being contested in good faith
are set forth on Schedule PE);

 

    19

     

    

 

(t)             defects
based solely on lack of information, including lack of information in the Company’s files, the lack of Third Party records, the
inability to locate an unrecorded instrument of which Buyer has constructive or inquiry notice by virtue of a reference to such unrecorded
instrument in any instrument provided or made available to Buyer by Seller (or Company) or in a recorded instrument (or a reference to
a further unrecorded instrument in any such instrument) or the unavailability of information from Governmental Authorities;

 

(u)            defects
based solely on lack of evidence of, or other defects with respect to, authorization, execution, delivery, acknowledgment, or approval
of any instrument in Seller’s chain of title absent affirmative evidence of a superior or competing claim of title from a Third
Party attributable to such matter;

 

(v)            any
matter has been cured, released or waived by or under any Law of limitation or prescription, including adverse possession and the doctrine
of laches or which has existed for more than twenty (20) years and no affirmative evidence shows that another Person has asserted a superior
claim of title to the applicable Oil & Gas Assets;

 

(w)            unreleased
instruments (including prior oil and gas leases and mortgages) absent specific evidence that such instruments continue in force and effect
and constitute a superior claim of title to the applicable Oil & Gas Interest if such unreleased leases would customarily be
accepted by a purchaser of and lender secured by the Oil & Gas Assets;

 

(x)             depth
severances or any other change in the Company’s Working Interest, Net Revenue Interest or Net Acre ownership for an Oil &
Gas Interest to the extent that they do not individually or in the aggregate (i) reduce the Company’s Net Revenue Interest
or Net Acre ownership in any Oil & Gas Interest below that shown in Annex A-1 or Annex A-2 for such
Oil & Gas Interest, (ii) increase the Company’s Working Interest in any Well above that shown in Annex A-2,
for such Well without a corresponding increase in Net Revenue Interest or (iii) materially impair or interfere with the operation
or use of the Oil & Gas Assets (as currently used or operated by the Company);

 

(y)            calls
on production under existing Contracts, provided that the holder of such right must pay an index-based price for any production
purchased by virtue of such call on production;

 

(z)             maintenance
of uniform interest provisions (i) contained in any Contract to the extent compliance with such provisions has been waived
in writing by the parties to such Contract, or (ii) contained in any Lease to the extent the applicable lessor has waived compliance
with such provisions in writing or breach of such provisions will not result in a suspension of material rights under such Lease, the
right of the lessor to terminate such Lease or the termination of such Lease;

 

(aa)          defects
arising from any change in applicable Laws after the Execution Date;

 

    20

     

    

 

(bb)          defects
based on Buyer’s change (or desired change) in the surface or bottom hole location, borehole or drainhole path, well or operational
plan, or operational technique (including completion or stimulation technique) with respect to any existing Well or any future wells
to be drilled on any Oil & Gas Asset;

 

(cc)          production
payments that have expired of their own terms;

 

(dd)          defects
solely based on Seller’s failure to have a title opinion, title insurance policy or survey on any Oil & Gas Asset;

 

(ee)          any
defect arising from (i) any Lease having no pooling provision, or an inadequate horizontal pooling provision, or (ii) the absence
of any lease amendment or consent by any royalty interest or mineral interest holder authorizing the pooling of any Lease, in each case,
except to the extent that the same do not, individually or in the aggregate (A) reduce the Company’s Net Revenue Interest
or Net Acre ownership in any Oil & Gas Interest below that shown in Annex A-1 or Annex A-2 for such
Oil & Gas Interest, (B) increase the Company’s Working Interest in any Well above that shown in Annex A-2,
for such Well without a corresponding increase in Net Revenue Interest or (C) materially impair or interfere with the operation
or use of the Oil & Gas Assets (as currently used or operated by the Company);

 

(ff)            defects
based on or arising out of the allocation of production of Hydrocarbons or from the failure of the Company to enter into, be party to,
or be bound by, pooling provisions, a pooling agreement, production sharing agreement, production handling agreement, or other similar
agreement, in each case, with respect to any horizontal Well that crosses more than one Lease, or tract, to the extent (i) such
Well has been permitted by the applicable Governmental Authority or (ii) the allocation of Hydrocarbons produced from such Well
among such Lease or tracts is based upon the length of the “as drilled” horizontal wellbore open for production, the total
length of the horizontal wellbore, or other methodology that is intended to reasonably attribute to each such Lease or tract its share
of such production;

 

(gg)          any
lien, obligation, burden, defect, or loss of title resulting from the Company’s or Seller’s conduct of business in compliance
with this Agreement;

 

(hh)          any
lien, obligation, burden, or defect that affects only which Person has the right to receive payments with respect to burdens on production
with respect to any Oil & Gas Interest (rather than the amount of such burdens on the applicable Oil & Gas Interest)
and that does not affect the validity of the underlying Oil & Gas Interest;

 

(ii)            lack
of (i) Contracts or rights for the transportation or processing of Hydrocarbons produced from the Oil & Gas Assets, (ii) any
rights of way for gathering or transportation pipelines or facilities that do not constitute any of the Oil & Gas Assets, or
(iii) in the case of a well or other operation with respect to the Oil & Gas Assets that has not been commenced as of the
Closing Date, any permits, easements, rights of way, unit designations, or production or drilling units not yet obtained, formed, or
created;

 

(jj)            the
terms and conditions of this Agreement or any other document executed pursuant to the terms of this Agreement;

 

    21

     

    

 

(kk)          any
matters set forth on Annex A-1, Annex A-2, or Schedule PE;

 

(ll)            any
defect, charge or other burden or variance in Seller’s Net Revenue Interest, Net Acre ownership or Working Interest with respect
to an Oil & Gas Interest, in each case, to the extent such defect, charge or other burden or variance in Seller’s Net
Revenue Interest, Net Acre ownership or Working Interest impacts: (i) with respect to any Lease, depths covered by such Lease other
than the depths within the Target Interval (or as otherwise expressly depth limited within the Target Interval as expressly set forth
on Annex A-1), or (ii) with respect to any Well, formations other than those formations in which such Well is currently producing;
and

 

(mm)        (i) such
Title Defects as Buyer may have waived or (ii) except in connection with Buyer’s rights with respect to Section 7.34,
Buyer is deemed to have waived pursuant to the express terms of this Agreement or Title Defects that were not properly asserted on or
before the Claim Deadline.

 

“Permitted Leakage”
means all payments and transactions described on Schedule PL.

 

“Person”
means any individual or entity, including any corporation, limited liability company, partnership (general or limited), joint venture,
association, joint stock company, trust, unincorporated organization or Governmental Authority.

 

“Phase I Environmental
Site Assessment” is defined in Section 4.2.

 

“Post-Closing Letter
Agreement” means each of the letter agreements by and among the Buyer on the one hand and each of the Seller and each of the
individuals listed on Schedule 2.10(a)(xii), on the other hand, each in the substantially the form attached hereto as Exhibit H.

 

“Post-Closing Statement”
is defined in Section 2.7(a).

 

“Pre-Effective Time
Tax Period” means any taxable period ending before the Effective Time and the portion of any Straddle Period ending on the
day prior to the day on which the Effective Time occurs.

 

“Preferential Purchase
Right” means preferential purchase rights, rights of first refusal or first offer, preemptive rights, subscription rights,
participation rights, purchase options, call options, warrants, share purchase agreements or any similar rights that are applicable to
the sale of the Target Interests, the indirect sale, assignment or transfer of any Oil & Gas Asset or the consummation of the
transactions contemplated by this Agreement and the Related Agreements.

 

“Proceeding”
means any pending or completed action, suit, charge, complaint, audit or proceeding before any Governmental Authority (including any
administrative enforcement proceeding), whether civil, criminal, administrative, arbitrative or investigative, or any appeal thereof.

 

“Purchase Price”
is defined in Section 2.2.

 

“Records Period” is defined
in Section 9.13.

 

    22

     

    

 

“Reference Price”
means $53.5759, which represents the volume weighted average sales price as traded on NYSE of the shares of Buyer Common Stock calculated
for the twenty (20) trading day period ending on the trading day that is the day before the Execution Date.

 

“Registration Rights
Agreement” is defined in Section 2.10(a)(iv).

 

“Related Agreements”
means each agreement, document, instrument or certificate contemplated by this Agreement to be executed in connection with the transactions
contemplated hereby.

 

“Remaining Disputes”
is defined in Section 2.7(b).

 

“Resolution Period”
is defined in Section 2.7(b).

 

“Restricted Contacts”
is defined in Section 9.2.

 

“Review Period”
is defined in Section 2.7(b).

 

“Rights-of-Way”
means all rights-of-way, surface fee rights, fee interests and other leases, reservations, crossing rights and other easements, servitudes,
franchises, permits, licenses, condemnation judgments or awards, surface leases, surface use agreements, subsurface easements, subsurface
use agreements and other rights to, or interests in, real property and other similar real property interests held by the Company, to
the extent and only to the extent used or held for use in connection with the ownership, operation or maintenance of the Oil &
Gas Assets and, in each case, other than Permits.

 

“Royalties”
means any royalties, overriding royalties, production payments, carried interests, net profits interests, reversionary interests, back-in
interests and other similar burdens upon, measured by or payable out of production of Hydrocarbons.

 

“Rule 144”
means Rule 144 promulgated under the Securities Act or any similar rule or regulation hereafter adopted by the SEC having substantially
the same effect as such rule.

 

“Scheduled Closing
Date” is defined in Section 2.6.

 

“SEC”
means the Securities and Exchange Commission.

 

“Securities”
means any equity interests or other security of any class, any option, warrant, convertible or exchangeable security (including any membership
interest, equity unit, partnership interest, trust interest) or other right, however denominated, to subscribe for, purchase or otherwise
acquire any equity interest or other security of any class, with or without payment of additional consideration in cash or property,
either immediately or upon the occurrence of a specified date or a specified event or the satisfaction or happening of any other condition
or contingency; provided, however, “Securities” expressly exclude any real property interests or interests
in any Hydrocarbon leases, fee minerals, reversionary interests, non-participating royalty interests, executive rights, non-executive
rights, royalties and any other similar interests in minerals, overriding royalties, reversionary interests, net profit interests, production
payments, and other royalty burdens and other interests payable out of production of Hydrocarbons.

 

    23

     

    

 

“Securities Act”
means the Securities Act of 1933, as amended.

 

“Seller”
is defined in the Preamble.

 

“Seller Fundamental
Representations and Warranties” means those representations and warranties (a) of Seller set forth in Section 6.1,
Section 6.2, Section 6.3, Section 6.4, Section 6.5(a), and Section 6.9, and
(b) of the Company set forth in Section 7.1, Section 7.2, Section 7.3, Section 7.4,
Section 7.10(c) and Section 7.36.

 

“Seller Indemnified
Parties” means Seller, its current and future Affiliates and its and their respective direct and indirect equityholders, directors,
officers, employees, agents, representatives, members, managers, partners, successors and assigns.

 

“Seller Names”
has the meaning set forth in Section 9.14.

 

“Seller Taxes”
shall mean any and all (a) Taxes allocable to Seller pursuant to Section 11.1(a) (other than any such Taxes that
are Working Capital Liabilities and taking into account, and without duplication of, such Taxes effectively borne by Seller as a result
of any payments made from one Party to the other in respect of Taxes pursuant to Section 11.1(b)), (b) Income Taxes
of Seller or any of its direct or indirect owners or Affiliates (other than the Company), or any combined, unitary, or consolidated group
of which any of the foregoing is or was a member or as transferee or successor, by contract or otherwise, (c) Transfer Taxes allocated
to Seller pursuant to Section 11.3, and (d) without duplication, any “applicable employment taxes” (as defined
in Section 2302(d)(1) of the CARES Act) of the Company deferred pursuant to Section 2302 of the CARES Act or the presidential
memorandum regarding Deferring Payroll Tax Obligations in Light of the Ongoing COVID-19 Disaster signed on August 8, 2020 (other
than any such Taxes that are Working Capital Liabilities).

 

“Shortfall Amount”
is defined in Section 2.7(f).

 

“Solvent”
means, that, as of any date of determination, (a) the fair value of the assets of the Buyer and the Company on a consolidated basis,
as of such date, exceeds the sum of all liabilities of Buyer and the Company, including contingent and other liabilities, as of such
date, (b) the fair saleable value of the assets of the Buyer and the Company on a consolidated basis, as of such date, exceeds the
amount that will be required to pay the probable liabilities of the Buyer and the Company on their existing debts (including contingent
liabilities) as such debts become absolute and matured, and (c) the Buyer and the Company on a consolidated basis will not have,
as of such date, an unreasonably small amount of capital for the operation of the businesses in which they are engaged or will be engaged
following such date.

 

“Specified Matters”
is defined in Section 7.37.

 

“Stock Consideration”
is defined in Section 2.2(b).

 

“Straddle Period”
means any Tax period beginning before and ending after the Effective Time.

 

    24

     

    

 

“Subsidiary”
means, with respect to any relevant Person as of the date the determination is being made, (a) any other Person that is Controlled
(directly or indirectly) by such Person or (b) any corporation, partnership, limited liability company or other entity of which
any shares of capital stock or other ownership interests are owned directly or indirectly by such Person.

 

“Suspense Funds”
means all amounts controlled by the Company and its Affiliates that are held in suspense and are attributable to the Oil & Gas
Assets (including any such amounts attributable to other Working Interest owners’ interest in such assets).

 

“Takeover Laws”
shall mean any “Moratorium,” “Control Share Acquisition,” “Fair Price,” “Supermajority,”
 “Affiliate Transactions,” or “Business Combination Statute or Regulation” or other similar state antitakeover
Laws.

 

“Target Interests”
is defined in the Recitals.

 

“Target Interval”
means the formations and zones from the top of the Niobrara formation to the base of the Codell formation, being the stratigraphic equivalent
of the stratigraphic section between 5,991 feet measured depth and 6,295 feet measured depth, all as measured by the Peterson PC LG #19-06
well (API 05-123-33378) located in the SE/4 of the NW/4 of Section 19, Township 9 North, Range 59 West, 6th P.M., Weld
County, Colorado.

 

“Tax”
or “Taxes” means (a) any federal, state, local or foreign income, gross receipts, payroll, employment, excise,
severance, stamp, occupation, premium, windfall profits, environmental, custom duties, capital stock, intangible property, production,
license, capital gains, goods and services, franchise, profits, withholding, social security, unemployment, disability, ad valorem, real
property, personal property, sale, use, transfer, registration, value added, alternative or add on minimum, estimated or other tax, or
any duty, impost or custom in the nature of a tax, in each case, imposed by any Governmental Authority (whether payable directly or by
withholding and whether or not requiring the filing of a Tax Return) and, (b) any interest, penalty, fine, additions to Tax or additional
amounts imposed by any Taxing Authority in connection with any item described in clause (a).

 

“Tax Contest”
is defined in Section 11.5.

 

“Tax Return”
means all reports, estimates, declarations of estimated Tax, information statements and returns, and claims for refunds filed or required
to be filed with any Taxing Authority, including any amendment thereof and schedule or attachment thereto.

 

“Taxing Authority”
means, with respect to any Tax, the Governmental Authority that imposes or collects such Tax.

 

“Termination Agreement”
means that termination agreement by and between Company and its Affiliate who is subject to the relevant Affiliate Arrangement in question,
in the form attached hereto as Exhibit G.

 

“Termination Date”
is defined in Section 13.1(c).

 

    25

     

    

 

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

 

“Third Party Claim”
is defined in Section 10.5(b).

 

“Title Arbitrator”
is defined in Section 3.1(i)(ii).

 

“Title Benefit”
means any right, circumstance, or condition that operates to (a) increase the Net Revenue Interest of the Company in any Lease or
Well above that shown for such Lease or Well on Annex A-1 or Annex A-2, as applicable, (b) increase the Net Acre
ownership of the Company in any Lease above that shown for such Lease on Annex A-1 to the extent such increase is not accompanied
by at least a proportionate decrease in the Company’s Net Revenue Interest for such Lease from that set forth on Annex A-1,
or (c) decrease the Working Interest of Seller in any Well without a proportionate or greater than proportionate decrease in Net
Revenue Interest.

 

“Title Benefit Amount”
is defined in Section 3.1(e).

 

“Title Benefit Property”
is defined in Section 3.1(e).

 

“Title Deductible
Amount” means an amount equal to two percent (2.0%) of the Transaction Value.

 

“Title Defect”
means any Lien, charge, encumbrance, obligation (including contract obligation), defect or other matter that causes the Company’s
title to any Lease or Well set forth on Annex A-1 or Annex A-2 to be less than Defensible Title.

 

“Title Defect Amount”
is defined in Section 3.1(g).

 

“Title Defect Notice”
is defined in Section 3.1(a).

 

“Title Defect Property”
is defined in Section 3.1(d)(ii).

 

“Title Records”
is defined in Section 3.1(a).

 

“Title Threshold
Amount” is defined in Section 3.1(g)(vi)(A).

 

“Transaction”
means the transactions contemplated by this Agreement.

 

“Transaction Expenses”
means, to the extent not paid prior to Closing (or to the extent paid, such payment occurred after the Effective Time), without duplication:
all fees, costs and expenses (including fees, costs and expenses of third-party advisors, legal counsel, investment bankers or other
representatives) incurred by the Company in connection with the transactions contemplated by this Agreement and the Related Agreements,
including all “change of control,” retention, transaction bonus, incentive, termination, compensation, redundancy, severance
or other similar payments that are payable by the Company in connection with the consummation of the transactions contemplated by this
Agreement, and the employer portion of any payroll, social security or other Taxes required to be paid by the Company in connection with
the payments described in this clause; provided, however, that in no event shall Transaction Expenses include any fees, costs
or expenses (a) initiated or otherwise incurred at the written request of the Buyer any of its Affiliates or representatives and
pursuant to which Buyer has agreed in writing to be responsible for such expense, (b) related to any financing activities (including
the issuance of the shares of Buyer Common Stock as part of the Adjusted Stock Consideration) in connection with the transactions contemplated
hereby or (c) any fees, costs and expenses contemplated pursuant to Section 9.6 or elsewhere in this Agreement to be
borne by Buyer.

 

    26

     

    

 

“Transaction Value”
means $363,000,000.

 

“Transfer Agent”
means Buyer’s duly appointed transfer agent for the Adjusted Stock Consideration.

 

“Transfer Taxes”
is defined in Section 11.3.

 

“Units”
has the meaning set forth in the definition of Oil & Gas Assets.

 

“Wells”
means all of the Company’s right, title and interest in and to the oil, gas, CO2, water, injection and disposal wells,
used or held for use by, whether producing, shut-in, plugged or abandoned, including those Wells set forth on Annex A-2.

 

“Working Capital
Assets” shall mean the current assets of the Company as of the Effective Time (including cash and Cash Equivalents), each determined
in accordance with GAAP or the methodologies set forth on Schedule WC, but excluding any unrealized Company Hedges, any Income
Tax assets and any deferred Tax assets.

 

“Working Capital
Liabilities” shall mean the current liabilities of the Company as of the Effective Time, each determined in accordance with
GAAP or the methodologies set forth on Schedule WC, including Suspense Funds and Deferred Payroll Taxes, but excluding (a) Indebtedness
for Borrowed Money, (b) Transaction Expenses, (c) any unrealized Company Hedges, (d) deferred Tax liabilities established
to reflect differences in the timing of book and tax income, and (e) any general or administrative costs, management costs, overhead
costs, or similar amounts that are paid or payable to Seller or any Affiliate of Seller other than the Company.

 

“Working Interest”
means, with respect to any Lease or Well (limited to the applicable currently producing formation for any Well or the Target Interval
for any Lease), and subject to any reservations, limitations or depth restrictions described on Annex A-1, Annex A-2, Annex
A-3, the percentage interest in and to such Lease or Well, as applicable, that is burdened with the obligation to bear and pay costs
and expenses of maintenance, development and operations on or in connection with such Lease or Well, but without regard to the effect
of any Royalties.

 

    27

     

    

 

Section 1.2     Construction.
Whenever the context may require, any pronoun includes the corresponding masculine, feminine and neuter forms. Words in the singular
or the plural include the plural or the singular, as the case may be. All references herein to Articles, Sections, preamble, recitals,
paragraphs and Schedules shall be deemed to be references to Articles, Sections, preamble, recitals, paragraphs and Schedules of this
Agreement unless the context otherwise requires. All Schedules, Annexes and Exhibits attached hereto are made a part of this Agreement
for all purposes. The words “include”, “includes” and “including” shall be deemed to be followed
by the phrase “without limitation.” The words “hereof”, “herein”, “hereunder”, and words
of similar import, when used in this Agreement, refer to this Agreement as a whole and not to any particular provision of this Agreement.
Unless expressly provided to the contrary, the word “or” is not exclusive. References to any Contract are to that Contract
as amended, modified or supplemented from time to time in accordance with the terms hereof and thereof. Unless otherwise expressly provided
herein, any statute or Law defined or referred to herein means such statute or Law as from time to time amended, modified or supplemented,
including by succession of comparable successor statutes. The terms “dollars” or “$” mean dollars in the lawful
currency of the United States of America. The terms “day” and “days” mean and refer to calendar day(s). Each
accounting term not defined herein, and each accounting term partly defined herein to the extent not defined, will have the meaning given
to it under GAAP and COPAS standards, as in effect on the Execution Date. The use of the phrase “ordinary course of business”
or other derivations thereof shall mean “ordinary course of business consistent with past practice” and shall be deemed to
include all actions taken or not taken that either the Seller or the Company reasonably believed or reasonably believes necessary or
appropriate in respect COVID-19, including any compliance with any COVID-19 Measure. Wherever in this Agreement there is a consent right
of a Party or a reference to the “satisfaction” or “sole discretion” of a Party, such Party shall be entitled
to consider solely its own interests (and not the interests of any other Person) or, at its sole election, any such other interests and
factors as such Party desires. When calculating the period of time before which, within which or following which any act is to be done
or step taken pursuant to this Agreement, the date that is the reference date in calculating such period shall be excluded. If the last
day of such period is a non-Business Day, the period in question shall end on the next succeeding Business Day. Any reference in this
Agreement to “made available” means a document or other item of information that was provided or made available to any Buyer
Indemnified Parties and its or their representatives in any “data rooms,” “virtual data rooms,” management presentations
or in any other form in expectation of, or in connection with, the transactions contemplated by this Agreement and the Related Agreements.

 

Article 2

PURCHASE AND SALE TRANSACTION

 

Section 2.1     Purchase
and Sale. At the Closing, upon the terms and conditions set forth in this Agreement, Seller shall sell, transfer, convey, assign
and deliver to Buyer, and Buyer shall purchase and accept from Seller, the Target Interests, free and clear of all Liens, except for
Liens arising under federal and state Securities Laws, arising pursuant to the Governing Documents of the Company or imposed by Buyer
or any of its Affiliates.

 

Section 2.2     Purchase
Price. The aggregate consideration for the Target Interests to be purchased by Buyer pursuant to this Agreement (the “Purchase
Price”) will consist of:

 

(a)            forty-five
million dollars ($45,000,000) in cash (such amount of cash, the “Cash Consideration”), as may be adjusted pursuant
to Section 2.3 (the “Adjusted Cash Consideration”);

 

(b)            two
million three hundred thousand (2,300,000) shares of Buyer Common Stock (the “Stock Consideration”), as may be adjusted
pursuant to Section 2.3, the “Adjusted Stock Consideration”; and

 

    28

     

    

 

(c)            payment
of the Existing Credit Agreement Payoff Amount in accordance with the Payoff Letter.

 

The Purchase Price shall
be adjusted by the Adjustment Amount, in each case, for purposes of Closing as provided for in each of Section 2.3 and Section 2.5,
and after the Closing as provided in Section 2.7. For the avoidance of doubt, no item that is included as a specific adjustment
to the Purchase Price pursuant to Section 2.3, that would otherwise be taken into account in the determination of the calculation
of Effective Time Working Capital shall be subject to any adjustment as a result of the determination of the calculation of Effective
Time Working Capital, and all adjustments to the Purchase Price pursuant to Section 2.3 shall be without duplication of any
duplicative remedy under this Agreement, including pursuant to any other adjustments set forth in Section 2.3 and the determination
of the calculation of Effective Time Working Capital therein.

 

Section 2.3     Adjustment
Amount.

 

(a)            The
Adjustment Amount shall be calculated, without duplication, as follows:

 

(i)            increased
by the following amounts, in each case, if applicable:

 

		(A)	the amount by which the Effective Time Working
                                            Capital is greater than seventeen million seven hundred thousand dollars ($17,900,000);

 

		(B)	the amount by which the amount of Indebtedness
                                            for Borrowed Money at the Effective Time under the Existing Credit Agreement is less than
                                            one hundred and thirty-four million dollars six hundred thousand ($134,600,000) inclusive
                                            of all interest and fees;

 

		(C)	subject to Buyer’s consent (which
                                            shall not be unreasonably withheld, conditioned or delayed), the amount of cash and Cash
                                            Equivalents contributed to the Company after the Effective Time, but before Closing, by Seller
                                            or any Person who, directly or indirectly, owns a Membership Interest in Seller; and

 

		(D)	any other amount otherwise agreed upon by
                                            the Parties.

 

(ii)            decreased
by the following amounts, in each case, if applicable:

 

		(A)	subject to the terms of Section 3.1(i) and
                                            Section 4.5, the aggregate amount of all Title Defect Amounts pursuant to Section 3.1(g) (after
                                            application of all finally determined Title Benefit Amounts) which, in each case, have been
                                            finally determined as of the Closing Date and Environmental Defect Amounts pursuant to Section 4.4(c) which
                                            have been finally determined as of the Closing Date;

 

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		(B)	the aggregate amount of any Leakage;

 

		(C)	the amount by which the amount of Indebtedness
                                            for Borrowed Money at the Effective Time under the Existing Credit Agreement is in excess
                                            of one hundred and thirty-four million six hundred thousand dollars ($134,600,000) inclusive
                                            of all interest and fees;

 

		(D)	the amount of all Transaction Expenses to
                                            the extent not paid by Seller prior to the Closing;

 

		(E)	if applicable, the amount by which the Effective
                                            Time Working Capital is less than seventeen million seven hundred thousand dollars ($17,900,000);
                                            and

 

		(F)	any other amount otherwise agreed upon by
                                            the Parties.

 

(b)            Notwithstanding
anything to the contrary herein, (i) for purposes of any Adjustment Amount included in the Closing Statement, (x) in the event
the Adjustment Amount is negative, all adjustments to the Purchase Price shall be made (A) first, to the Cash Consideration and
(B) only to the extent the Cash Consideration has been reduced to zero, thereafter, to the Stock Consideration, by subtracting a
number of shares therefrom, equal to the amount of such adjustment, divided by the Reference Price and (y) in the event the Adjustment
Amount is positive, all adjustments to the Purchase Price shall be made to the Cash Consideration, and (ii) for purposes of any
Adjustment Amount included in the Post-Closing Statement, any positive or negative adjustment will be paid in cash. Once all adjustments
have been made to the Stock Consideration, if the calculated number thereof includes a fractional shares, such number shall be rounded
up to the next whole share.

 

(c)            Notwithstanding
anything to the contrary herein and without limiting any other provisions of this Agreement, if, at any time on or after the date of
this Agreement and prior to the Closing, Buyer makes (i) any Buyer Common Stock dividend or distribution, (ii) subdivision
or split of any Buyer Common Stock, (iii) combination or reclassification of Buyer Common Stock into a smaller number of shares
of Buyer Common Stock or (iv) issuance of any Securities by reclassification of Buyer Common Stock, then the Reference Price and
the number of shares of Buyer Common Stock to be issued to Seller pursuant to this Agreement shall be equitably and proportionately adjusted
to reflect such change to provide the same economic effect as contemplated by this Agreement prior to such action; provided, that
this Section 2.3(c) shall in no event be construed to permit Buyer or its Affiliates to take any action with respect
to the Buyer Common Stock that is prohibited by the terms of this Agreement. An adjustment made pursuant to the foregoing shall become
effective immediately after the record date in the case of a dividend and shall become effective immediately after the effective date
in the case of a subdivision, split, combination, or reclassification.

 

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(d)            Seller
may, at its sole discretion, direct Buyer to issue the Adjusted Stock Consideration to one or more of Seller’s direct or indirect
equityholders or their designated Affiliates as its designee, by providing written notice to Buyer at least three (3) Business Days
in advance of the Closing Date, subject to any such designee providing any documentation reasonably requested by Buyer (which documentation
shall include representations of such designee to the effect set forth in Section 6.7 and Section 6.8 hereof)
to have the Adjusted Stock Consideration issued in book-entry or certificated form in the name of such designees at Closing. Each designee
may elect to execute and deliver a countersignature to the Registration Rights Agreement at the Closing in order for such designee to
be named as a selling stockholder in, and to have such designee’s shares of Buyer Common Stock included in, the resale shelf registration
statement on Form S-3 to be filed pursuant to the terms thereof within the time provided for in Section 2.1 thereof.

 

Section 2.4     Deposit;
Escrow. Within two (2) Business Days following the Execution Date, Buyer shall deliver to the Escrow Agent, by wire transfer
of immediately available funds into an interest bearing escrow account (the “Deposit Escrow Account”), established
pursuant to the Escrow Agreement, a cash deposit equal to seven and a half percent (7.5%) of the Transaction Value (together with any
interest or income accrued thereon, the “Deposit”), to (i) assure Buyer’s performance of its obligations
hereunder and for certain other purposes set forth herein and (ii) from and after the Closing, to support Seller’s performance
of its obligations pursuant to Section 2.7 and Section 10.2(a); provided, that, for the avoidance of doubt,
Seller’s performance of its obligations pursuant to Section 2.7 and Section 10.2(a) shall not be limited
to the Deposit. Subject to Section 10.9 and Section 13.2(b), and notwithstanding the fact the Deposit will remain
in escrow after the Closing Date, the Deposit shall be held by the Escrow Agent, and in the event there is a Closing, applied as a credit
against the Closing Cash Payment to be delivered at Closing as provided in Section 2.10(b)(ii); provided, that if
this Agreement is terminated prior to the Closing in accordance with Article 13, then the distribution of the Deposit shall
be governed by the terms of Section 13.2(b) and the Escrow Agreement.

 

Section 2.5     Closing
Statement. At least three (3) Business Days prior to the Closing Date, Seller shall deliver to Buyer a statement setting forth
Seller’s good faith estimate of the Purchase Price (the “Closing Purchase Price”), including its calculation
of the Adjustment Amount and each component thereof, and the resulting Closing Cash Payment, along with the designation of Seller’s
accounts for the wire transfers of funds as set forth in Section 2.10(b)(ii) (the “Closing Statement”).
Concurrently with delivery of the Closing Statement, Seller shall deliver to Buyer reasonable documentation in the possession of Seller
or any of its Affiliates to support the items for which adjustments are proposed or made in the Closing Statement delivered by Seller
and a brief explanation of any such adjustments and the reasons therefor. Within three (3) Business Days after its receipt of the
Closing Statement, Buyer may submit to Seller in writing any objections or proposed changes thereto and Seller shall consider all such
objections and proposed changes in good faith. The estimate agreed to by Seller and Buyer, or, absent such agreement, delivered in the
Closing Statement by Seller, will be the amount to be paid by Buyer to Seller at the Closing.

 

Section 2.6     Closing.
The consummation of the transactions contemplated by this Agreement (the “Closing”) shall take place electronically
and remotely on March 1, 2022 (the “Scheduled Closing Date”), or if all conditions to Closing set forth in Article 12
have not been satisfied, or, if permissible, waived by the Party entitled to the benefit of the same (other than those conditions
which by their terms are required to be satisfied at Closing, but subject to the satisfaction or waiver of such conditions) by the Scheduled
Closing Date, the third (3rd) Business Day after the conditions set forth in Article 12 have been satisfied, or, if permissible,
waived by the Party entitled to the benefit of the same (other than those conditions which by their terms are required to be satisfied
at Closing, but subject to the satisfaction or waiver of such conditions) or on such other date as Seller and Buyer mutually agree in
writing (the date upon which the Closing actually occurs, the “Closing Date”). The Closing shall be deemed effective
for all purposes as of 12:01 a.m. Central Standard Time on the Closing Date.

 

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Section 2.7
             Post-Closing Adjustment.

 

(a)            No
sooner than three (3) months after the Closing Date, but no later than four (4) months after the Closing Date, Buyer shall deliver
to Seller a statement (the “Post-Closing Statement”) setting forth in reasonable detail Buyer’s good faith calculation
of (i) the Adjustment Amount, including each component thereof, and (ii) the resulting calculation of the Purchase Price. Concurrently
with the delivery of the Post-Closing Statement, Buyer shall deliver to Seller reasonable documentation in the possession of Buyer or
any of its Affiliates to support the items for which adjustments are proposed or made in the Post-Closing Statement delivered by Buyer,
and a brief explanation of any such adjustments and the reasons therefor. In the event Buyer does not deliver the Post-Closing Statement
in accordance with this Section 2.7, Seller’s pre-Closing estimate of the Purchase Price shall control and be the Final
Purchase Price unless Seller elects to deliver a Post-Closing Statement within ten (10) Business Days after such four (4) month
anniversary of the Closing Date, then the Parties shall proceed in accordance with Section 2.7(b) except that the rights
of Seller and Buyer shall be reversed.

 

(b)            Seller
shall have thirty (30) days after Seller’s receipt of the Post-Closing Statement (the “Review Period”) within
which to review Buyer’s calculation of the Purchase Price. If Seller disputes any component of the proposed Purchase Price set forth
in the Post-Closing Statement delivered pursuant to Section 2.7(a) (the “PC Statement Purchase Price”),
Seller shall notify Buyer in writing of its objection to the PC Statement Purchase Price prior to the expiration of the Review Period,
together with a description of the basis for and dollar amount of such disputed components (to the extent possible), together with reasonable
documentation in the possession of Seller supporting such disputed components (a “Dispute Notice”). The PC Statement
Purchase Price shall become final, conclusive and binding on the Parties, and be considered the Final Purchase Price for all purposes
of this Agreement, unless Seller delivers to Buyer a Dispute Notice prior to the expiration of the Review Period. If Seller timely delivers
a Dispute Notice, (i) any amounts in the PC Statement Purchase Price not objected to by Seller in the Dispute Notice shall be final,
conclusive and binding on the Parties, and (ii) Buyer and Seller shall, within fifteen (15) days following Buyer’s receipt
of such Dispute Notice (the “Resolution Period”), use commercially reasonable efforts to attempt to mutually resolve
in writing their differences with respect to any remaining items set forth in the Dispute Notice and any such mutual resolution shall
be final, conclusive and binding on the Parties.

 

(c)            If,
at the conclusion of the Resolution Period, any items set forth in the Dispute Notice remain in dispute (the “Remaining Disputes”),
then each of Buyer and Seller shall submit all such Remaining Disputes to PriceWaterhouse Coopers LLP (or such other nationally recognized
accounting firm the Parties may mutually select), for resolution; provided that if PriceWaterhouse Coopers LLP has not confirmed
that it will arbitrate such disputes and the Parties do not agree on another accounting firm within ten (10) days following the request
from the Parties for PriceWaterhouse Coopers LLP to arbitrate such disputes, the Houston, Texas, office of the American Arbitration Association
shall select a nationally recognized accounting firm not materially affiliated with Seller or Buyer to arbitrate such disputes. The appointed
accounting firm shall be the “Accounting Firm”, and within five (5) Business Days after appointment of the Accounting
Firm the Parties shall deliver to the Accounting Firm their written position with respect to such Remaining Disputes. The Accounting Firm,
once appointed, shall have no ex parte communications with the Parties concerning the Remaining Disputes. The Accounting Firm shall
determine, based solely on the submissions by Seller and Buyer, and not by independent review, only the Remaining Disputes and shall choose
either Seller’s position or Buyer’s position with respect to each matter addressed in a Dispute Notice, in each case, in accordance
with this Agreement. The Accounting Firm may not award damages, interest or penalties to any Party with respect to any matter. The Parties
shall request that the Accounting Firm make a decision with respect to all Remaining Disputes within forty-five (45) days after the submission
of the Remaining Disputes to the Accounting Firm, as provided above, and in any event as promptly as practicable. The final determination
with respect to all Remaining Disputes shall be set forth in a written statement by the Accounting Firm delivered simultaneously to Seller
and Buyer and shall, absent manifest error, be final, conclusive and binding on the Parties and enforceable against the Parties in any
court of competent jurisdiction, without right of appeal. Buyer and Seller shall promptly execute any reasonable engagement letter requested
by the Accounting Firm and shall each cooperate fully with the Accounting Firm, including, by providing the information, data and work
papers used by each Party to prepare and/or calculate the Final Purchase Price, making its personnel and accountants available to explain
any such information, data or work papers, so as to enable the Accounting Firm to make such determination as quickly and as accurately
as practicable. The fees, costs and expenses of the Accounting Firm pursuant to this Section 2.7(b) shall be borne one
half by Seller, on the one hand, and one half by Buyer, on the other hand.

 

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(d)            From
and after the Closing Date until the Final Purchase Price is finally determined pursuant to this Section 2.7, Seller, its
Affiliates and their auditors, accountants, counsel and other representatives shall be permitted reasonable access to the Company and
its auditors, accountants, personnel, books and records and any other documents or information reasonably requested by Seller (including
the information, data and work papers used by Buyer and/or the Company’s auditors or accountants to prepare and calculate the Final
Purchase Price).

 

(e)            If
the final agreed Adjustment Amount exceeds the Adjustment Amount, as determined at Closing (such excess amount, if any, the “Excess
Amount”), within five (5) Business Days after the Final Purchase Price is finally determined pursuant to this Section 2.7,
Buyer shall, or shall cause the Company to, pay to Seller, in immediately available funds, an aggregate amount equal to the Excess Amount.

 

(f)            If
the final agreed Adjustment Amount is less than the Adjustment Amount, as determined at Closing (such shortfall amount, if any, the “Shortfall
Amount”), within five (5) Business Days after the Final Purchase Price is finally determined pursuant to this Section 2.7,
Seller shall pay to Buyer, in immediately available funds, an aggregate amount equal to the Shortfall Amount, which funds shall be delivered
in whole or in part by Seller and Buyer delivering joint written instructions to the Escrow Agent to release from the Deposit to Buyer
the Shortfall Amount.

 

(g)            Any
payments made pursuant to this Section 2.7 shall be deemed an adjustment to the Purchase Price, to the extent permitted by
applicable Law.

 

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Section 2.8             Tax
Treatment; Purchase Price Allocation. The Parties agree that the transactions contemplated by this Agreement will be treated for U.S.
federal Income Tax purposes as a sale by Seller to Buyer of all of the assets of the Company. Buyer shall prepare an allocation of the
purchase price (as determined for U.S. federal Income Tax purposes) among the assets of the Company in accordance with Section 1060
of the Code and the Treasury regulations promulgated thereunder and, to the extent permitted by applicable Law, in a manner consistent
with the Allocated Values (the “Allocation”) no later than sixty (60) days after the determination of the Final Purchase
Price. The Parties acknowledge that the portion of the purchase price paid in Buyer Common Stock shall be based on the fair market value
of such stock on the Closing Date. Seller shall notify Buyer in writing within fifteen (15) days of receipt of the Allocation of any comments
to the Allocation. If Seller does not deliver any written notice of objection to the Allocation within such fifteen (15) day period, the
Allocation shall be final, conclusive and binding on the Parties. If a written notice of objection is timely delivered to Buyer, Seller
and Buyer will negotiate in good faith for a period of twenty (20) days to resolve such dispute (the “Allocation Dispute Resolution
Period”). If, during the Allocation Dispute Resolution Period, Seller and Buyer resolve their differences in writing as to any
disputed amount, such resolution shall be deemed final and binding with respect to such amount for the purpose of determining that component
of the Allocation. In the event that Seller and Buyer do not resolve all of the items disputed in the Allocation prior to the end of the
Allocation Dispute Resolution Period, all such unresolved disputed items shall be determined by the Accounting Firm in accordance with
the procedures of Section 2.7(c), mutatis mutandis. Such determination shall be final and binding and the Allocation
shall be updated to reflect such determination. Any subsequent adjustments to purchase price for U.S. federal Income Tax purposes shall
be allocated in a manner consistent with the Allocation as finally determined hereunder and in accordance with Section 1060 of the
Code. The Parties shall, and shall cause their Affiliates to, report consistently with the Allocation, as finally determined in accordance
with this Section 2.8, in all Tax Returns, including Internal Revenue Service (“IRS”) Form 8594, and
no Party shall take any Tax position (including in any Tax Return and in any Tax examination, audit, claim or similar proceeding) that
is inconsistent with the Allocation, as finally determined in accordance with this Section 2.8, in each case, unless required
to do so by a final determination as defined in Section 1313 of the Code (or any similar provision of applicable state, local or
non-U.S. Tax Law) or with the other Party’s prior written consent; provided, however, that no Party shall be unreasonably
impeded in its ability and discretion to negotiate, compromise or settle any Tax examination, audit, claim or similar proceedings in connection
with the Allocation.

 

Section 2.9             Withholding
Taxes. Buyer and any other applicable withholding agent shall be entitled to deduct and withhold from the consideration otherwise
payable to any Person such amounts as are required to be deducted and withheld under applicable Law; provided that the Buyer shall
(a) use commercially reasonable efforts to provide at least five (5) Business Days’ notice to Seller prior of any intended
deduction or withholding, including a description of the legal basis therefor, (b) consult with Seller in good faith as to the nature
of the Tax and the basis upon which such deduction or withholding is required and (c) cooperate with Seller in good faith to minimize
or eliminate such deduction or withholding; provided, further, that no such notice shall be required with respect to any
deduction or withholding required as a result of the failure of Seller to deliver the certificate described in ‎Section 2.10(a)(iii).
Buyer and Seller agree to use commercially reasonable efforts to obtain available exemptions from, or reductions of, any Taxes required
to be withheld from payments under this Agreement. To the extent any such Taxes are deducted or withheld and timely paid to the appropriate
Taxing Authority, the Buyer shall be treated as having paid the amounts deducted or withheld as otherwise required hereunder.

 

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Section 2.10           Deliveries
at Closing.

 

(a)            At
the Closing (or earlier if indicated below), Seller and the Company, as applicable, shall deliver or cause to be delivered to Buyer the
following:

 

(i)          a
duly executed certificate from an authorized Person of Seller and the Company in the form attached hereto as Exhibit A, dated
as of the Closing Date, certifying that the conditions set forth in Section 12.2(a) and Section 12.2(b) have
been satisfied;

 

(ii)         an
assignment in lieu of certificate in the form of Exhibit B duly executed by Seller;

 

(iii)        a
certificate duly executed by Seller in the form of Exhibit C, meeting the requirements of Treasury Regulation §1.1445-2(b)(2),
certifying that Seller is not a “foreign person” or a “disregarded entity” within the meaning of Section 1445
of the Code;

 

(iv)        the
Registration Rights Agreement in the form of Exhibit D (the “Registration Rights Agreement”), duly executed
by, as applicable, Seller and/or each designee of Seller to receive Adjusted Stock Consideration in accordance with Section 2.3(d) and
who elects (at its sole discretion) to become a party thereto;

 

(v)         resignations
of, and releases from, each of the individuals who serves as an officer or manager of the Company in each case, in the form of Exhibit F;

 

(vi)        all
corporate minute books and authorizing resolutions or written consents and related corporate records of the Company;

 

(vii)        the
Closing Statement;

 

(viii)         all
consents, bank signatory cards or other approvals necessary in order to (i) permit any Persons specified by Buyer in writing to
Seller not later than ten (10) Business Days prior to Closing to control, immediately following the Closing, the Bank Accounts,
and (ii) remove the authority or approval of all signatories thereto (unless Buyer directs Seller to allow any of such signatories
to remain authorized to sign for the Bank Accounts) to control or access, immediately following the Closing and thereafter, the Bank
Accounts;

 

(ix)        duly
executed, acknowledged and recordable releases of all Liens that encumber the Target Interests, except for those Liens permitted pursuant
to Section 2.1, and of all other Liens securing Indebtedness for Borrowed Money by Seller, its Affiliates or the Company that
encumber the Oil & Gas Assets, except for Permitted Encumbrances;

 

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(x)         at
least three (3) Business Days prior to the Closing, (x) a debt payoff letter setting forth the total amounts payable pursuant
to the Existing Credit Agreement to fully satisfy all principal, interest, fees, costs, and expenses owed thereunder as of the anticipated
Closing Date (and the daily accrual thereafter), together with appropriate wire instructions, and agreement from the administrative agent
under the Existing Credit Agreement that upon payment in full of all such amounts owed, all Indebtedness for Borrowed Money under the
Existing Credit Agreement shall be discharged and satisfied in full, the Loan Documents (or applicable similar term in the Existing Credit
Agreement) shall be terminated and all liens on the Company and its Subsidiaries and their respective assets and equity securing the Existing
Credit Agreement shall be released and terminated (other than, in each case, any provisions and reimbursement, indemnity and contingent
obligations for which no claim has been made that expressly survive the termination of the Existing Credit Agreement) (the “Payoff
Letter”), and (y) applicable release documents necessary to evidence the release and termination of all liens on the Company
and its Subsidiaries and their respective assets and equity securing, and any guarantees by the Company and its Subsidiaries in respect
of, such Existing Credit Agreement;

 

(xi)        a
Termination Agreement with respect to all Affiliate Arrangements (other than those set forth on Schedule 9.8), in the form attached
hereto as Exhibit G; and

 

(xii)       Post-Closing
Letter Agreements with Buyer duly executed by Seller and each of the Persons listed on Schedule 2.10(a)(xii), in each case, in
substantially the form of Exhibit H with, in the case of the Post-Closing Letter Agreement to be executed by Seller, adjustments
as reasonably necessary to reflect the differences between the Persons listed on Schedule 2.10(a)(xii) and Seller in the context
of the representations, warranties and other descriptive provisions of the Post-Closing Letter Agreement.

 

(b)            At
the Closing, Buyer shall deliver to Seller and the Company the following:

 

(i)          a
duly executed certificate from an officer of Buyer in the form attached hereto as Exhibit E, dated as of the Closing Date,
certifying that the conditions set forth in Section 12.3(a) and Section 12.3(b) have been satisfied;

 

(ii)         by
wire transfer of immediately available funds to the account designated in writing by Seller to Buyer in the Closing Statement, in consideration
for the Target Interests, an amount equal to the Closing Cash Payment, minus the Deposit;

 

(iii)        by
wire transfer of immediately available funds to the Escrow Agent, the aggregate of all Title Defect Amounts and Environmental Defect
Amounts required to be deposited into the Defect Escrow Account pursuant to the terms of this Agreement;

 

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(iv)        an
acknowledgement duly executed by the Transfer Agent stating Buyer has issued the shares of Buyer Common Stock equal to the Adjusted Stock
Consideration as set forth in the Closing Statement to Seller or, as applicable, its designees in the amount set forth in the written
notice delivered pursuant to Section 2.3(d);

 

(v)         evidence
reasonably satisfactory to Seller that the shares of Buyer Common Stock have been approved and authorized for listing on the NYSE;

 

(vi)        on
behalf of Seller and the Company, an aggregate amount equal to the Existing Credit Agreement Payoff Amount to the applicable payees set
forth in the Payoff Letter, by wire transfer of immediately available funds to the accounts designated by such payees in such Payoff Letter;

 

(vii)         Post-Closing
Letter Agreements with each of Seller and each of the Persons listed on Schedule 2.10(a)(xii), duly executed by Buyer; and

 

(viii)      the
Registration Rights Agreement, duly executed by Buyer.

 

Article 3

TITLE MATTERS

 

Section 3.1             Independent
Title Review.

 

(a)            Buyer
Independent Examination. Subject to the other provisions of this Section 3.1, Buyer shall have the right during the period
(the “Examination Period”) from the Execution Date until 5:00 p.m. Central Standard Time on February 15,
2022 (such time, the “Claim Deadline”) to conduct, or cause its representatives to conduct, land and title work on
the Oil & Gas Assets, independently on its own behalf and account (“Independent Title Review”), and shall,
by delivery of a Notice to Seller that complies with Section 3.1(d) on or before the Claim Deadline (a “Title
Defect Notice”), assert the existence of alleged Title Defects with respect to the Oil & Gas Interests. Except with
respect to Section 7.34, no claims for Title Defects may be submitted after the Claim Deadline, and any matters that may otherwise
constitute Title Defects, but for which Buyer has not delivered a Title Defect Notice to Seller prior to the Claim Deadline, shall be
deemed to have been waived by Buyer for all purposes. Promptly after execution of this Agreement, and subject to the limitations expressly
set forth in this Agreement, including those set forth in Section 9.1(d), Section 9.1(e) and Section 14.11,
Seller shall deliver to Buyer, or provide Buyer with reasonable online access to, electronic copies of records regarding title to the
Oil & Gas Assets that are (x) in the possession of Seller (or its Affiliates) or Company, (y) currently maintained
in electronic format by Seller (or its Affiliates) or Company and (z) customarily provided during an examination period to perform
title due diligence or otherwise reasonably requested by Buyer to substantiate Seller’s Net Acres, Net Revenue Interest and Working
Interest in the Oil & Gas Assets, which such records may include abstracts and title opinions, land agreements and files, division
order paydecks and any other underlying materials (collectively, the “Title Records”); provided, that with respect
to any Title Records for which an electronic copy thereof is not available to Seller or the Company, Seller shall provide Buyer and its
Representatives with access to the physical copies of such Title Records as promptly as practicable to the extent such Title Records are
in Seller’s (or its Affiliates’) or the Company’s possession. Subject to the limitations expressly set forth in this
Agreement, including those set forth in Section 9.1(d), Section 9.1(e), and Section 14.11, during
the Examination Period, Seller shall give, upon twenty-four (24) hours’ advance notice, Buyer and its representatives (accompanied
by Seller or its representatives, at Seller’s sole discretion) reasonable access during normal business hours to the Company’s
facilities, properties, Title Records and other books and records in connection with Buyer’s Independent Title Review. Buyer shall
use commercially reasonable efforts to provide prompt Notice to Seller of any Title Defect it identifies as part of its Independent Title
Review; provided that Buyer’s right to assert a Title Defect shall not be prejudiced by any failure to provide such prompt
Notice. To give Seller an opportunity to commence reviewing and curing alleged Title Defects asserted by Buyer, Buyer shall use commercially
reasonable efforts to give Seller, on or before the end of each calendar week during the Examination Period prior to the Claim Deadline,
written notice of all alleged Title Defects discovered by Buyer during such calendar week, which notice may be preliminary in nature and
supplemented prior to the Claim Deadline (and which notices shall not constitute Title Defect Notices for purposes of this Agreement unless
they comply with the terms of Section 3.1(d)); provided that Buyer’s right to assert a Title Defect shall not
be prejudiced by any failure to provide such notice. The fees, costs, and expenses incurred by Buyer in conducting its Independent Title
Review or any other due diligence investigation shall be borne solely by Buyer.

 

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(b)            During
the Examination Period, Buyer shall maintain at its sole expense and with insurers reasonably satisfactory to Seller, policies of insurance
of the types and in the amounts sufficient to cover the obligations and liabilities of Buyer under Section 9.1(e). Coverage
under all insurance required to be carried by Buyer hereunder will (i) be primary insurance, (ii) list each of Seller and the
Company as additional insureds, (iii) waive subrogation against each of Seller and the Company and (iv) provide for five (5) days
prior notice to Seller in the event of cancellation or modification of the policy or reduction in coverage. Upon request by Seller, Buyer
shall provide evidence of such insurance to Seller prior to gaining such access.

 

(c)            Allocated
Value. The “Allocated Value” means (i) for each Well listed on Annex A-2, the dollar value set
forth on Annex A-2 for such Well, and (ii) for each Lease, the dollar value set forth on Annex A-1 for such Lease.
Seller and the Company have accepted such Allocated Values solely for purposes of determining any Title Defect Amounts, Title Benefit
Amounts and for the purposes described in Section 4.3(b)(iii), but otherwise make no representation or warranty as to the
accuracy of such values.

 

(d)            Title
Defect Notice. In order to be valid for purposes of this Agreement, each Title Defect Notice asserting a claim for a Title Defect
must be in writing and must include:

 

(i)          a
description in reasonable detail of the alleged Title Defect(s);

 

(ii)         the
Well or Lease (and associated Oil & Gas Interests) affected (the “Title Defect Property”);

 

(iii)        the
Allocated Value of the Well or Lease subject to the alleged Title Defect(s);

 

(iv)         if
the alleged Title Defect involves a shortfall in the Net Revenue Interest with respect to a Well, the alleged actual Net Revenue Interest
for such Well;

 

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(v)         if
the alleged Title Defect involves an excess of Working Interest share with respect to a Well, the alleged actual Working Interest share
for such Well;

 

(vi)        if
the alleged Title Defect involves a shortfall in Net Acres for a Lease, the alleged actual Net Acres in such Lease;

 

(vii)       if
the alleged Title Defect is a Lien, Buyer’s best estimate of the cost to remove such Lien; and

 

(viii)      supporting
documents, to the extent available, reasonably necessary for Seller (as well as any experienced title attorney or examiner hired by Seller)
to review the existence of the alleged Title Defect; and Buyer’s good faith estimate of the Title Defect Amount attributable to
such individual alleged Title Defect and the computations and information upon which Buyer’s estimate is based.

 

(e)            Title
Benefits. If Buyer discovers any Title Benefit on or before the expiration of the Claim Deadline, Buyer shall, as soon as practicable
but in any case prior to 5:00 p.m. Central Time on the Claim Deadline, deliver a Notice to Seller, which shall include (i) a
description of the Title Benefit, (ii) the Lease or Well affected (the “Title Benefit Property”), (iii) the
Allocated Value of such Title Benefit Property, and (iv) Buyer’s good faith reasonable estimate of the Title Benefit Amount
attributable to such individual alleged Title Benefit and the computations and information upon which Buyer’s estimate is based.
Seller shall have the right, but not the obligation, to deliver to Buyer a similar Notice on or before the expiration of the Examination
Period with respect to each Title Benefit discovered by Seller. With respect to each Title Benefit Property reported hereunder (or which
Buyer should have reported hereunder), an amount (the “Title Benefit Amount”) equal to the increase in the Allocated
Value for such Title Benefit Property caused by such Title Benefit will be determined as set forth in Section 3.1(h).

 

(f)            Cure
of and Remedies for Title Defects. Seller shall have the right, but not the obligation, in its sole discretion, to attempt to cure
(or to cause the Company to attempt cure), at Seller’s sole cost, any asserted Title Defect during the period until the date that
is ninety (90) days following the Closing Date (the “Cure Deadline”) by giving written notice to Buyer of its election
to cure such Title Defect prior to the Closing Date. If Seller elects to cure and actually cures a Title Defect prior to the Closing,
then no Purchase Price adjustment will be made for such Title Defect and Buyer will be deemed to have waived such Title Defect for all
purposes. Subject to Seller’s continuing right to cure or dispute the existence of a Title Defect or the Title Defect Amount asserted
with respect thereto, in the event that any Title Defect validly asserted by Buyer is not waived in writing by Buyer or cured prior to
Closing, then, subject to the Title Threshold Amount and the Title Deductible Amount, Seller shall, at its sole discretion, elect to:

 

(i)          convey
the affected Title Defect Property to Buyer (indirectly by virtue of conveying the Target Interests) at Closing and reduce the Closing
Cash Payment by the Title Defect Amount set forth in the Title Defect Notice for such Title Defect, taking into account the Title Threshold
Amount and Title Deductible Amount, which Title Defect Amount will be deposited into an escrow sub-account established pursuant to the
Escrow Agreement (the “Defect Escrow Account”) at Closing; provided, however, that (A) if Seller
fails to cure such Title Defect on or before the expiration of the Cure Deadline, Seller and Buyer shall execute and deliver a joint written
instruction to the Escrow Agent to release the escrowed Title Defect Amount attributable to such Title Defect to Buyer or (B) if
Seller cures such Title Defect on or before the expiration of the Cure Deadline, Seller and Buyer shall execute and deliver a joint written
instruction to the Escrow Agent to release the escrowed Title Defect Amount attributable to such Title Defect to Seller;

 

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(ii)         if
Seller does not elect to attempt to cure such asserted Title Defect, reduce the Purchase Price payable to Seller at Closing (as shall
be reflected in the Adjustment Amount) pursuant to Section 2.3(a)(ii)(A) by an amount equal to the Title Defect Amount
attributable to such Title Defect; or

 

(iii)        if
Buyer consents in writing, indemnify Buyer and (after Closing) the Company against all Losses resulting from such Title Defect pursuant
to a customary indemnity agreement in a form mutually agreeable to the Parties.

 

(g)            Title
Defect Amount. If Seller elects not to cure any such Title Defect or is unable to cure any such Title Defect prior to the Cure Deadline
as provided above, then the amount of each such Title Defect (the “Title Defect Amount”) shall be determined as follows:

 

(i)          if
Buyer and Seller agree in writing on the Title Defect Amount, then that amount shall be the Title Defect Amount;

 

(ii)         if
the Title Defect is a Lien that is undisputed and liquidated in amount, then the Title Defect Amount shall be the amount necessary to
remove such Lien;

 

(iii)        if
the Title Defect represents a discrepancy between (A) the Company’s aggregate ownership of Net Acres for any Lease and (B) the
amount of Net Acres set forth for such Lease in Annex A-1, and there is no discrepancy between the aggregate Net Revenue Interest
of the Company in such Lease and the Net Revenue Interest set forth for such Lease in Annex A-1, then the Title Defect Amount shall
be the product of the Allocated Value of such Lease multiplied by a fraction, the numerator of which is the difference between the number
of Net Acres owned by the Company in such Lease and the number of Net Acres set forth for such Lease in Annex A-1, and the denominator
of which is the Net Acres set forth for such Lease in Annex A-1;

 

(iv)        if
the Title Defect represents a discrepancy between (A) the Company’s aggregate Net Revenue Interest for any Oil & Gas
Interest and (B) the Net Revenue Interest stated in Annex A-1 or Annex A-2, as applicable, for such Oil &
Gas Interest, and for which there is not any change in the Seller’s Working Interest or Net Acre ownership for such Oil &
Gas Interest from that set forth in Annex A-1 or Annex A-2, as applicable, then the Title Defect Amount shall be the product
of the Allocated Value of such Oil & Gas Interest multiplied by a fraction, the numerator of which is the decrease in Seller’s
aggregate Net Revenue Interest in such Oil & Gas Interest and the denominator of which is Seller’s Net Revenue Interest
stated in Annex A-1 or Annex A-2, as applicable, for such Oil & Gas Interest; provided, however,
that if the Title Defect does not affect the Oil & Gas Interest throughout its entire productive life, the Title Defect Amount
shall be delivered pursuant to Section 3.1(g)(v);

 

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(v)         if
the Title Defect represents an obligation, encumbrance, burden, or charge upon, or other defect in title to, the affected Oil &
Gas Interest of a type not described in subsections (i), (ii), (iii) or (iv) of this Section 3.1(g),
the Title Defect Amount shall be determined by taking into account the Allocated Value of the Lease or Well so affected, the portion of
Seller’s interest in the Lease or Well affected by the Title Defect, the legal effect of the Title Defect, the potential discounted
economic effect of the Title Defect over the productive life of the affected Lease or Well, the values placed upon the Title Defect by
Buyer and Seller, the age of the factual matters causing or constituting the alleged Title Defect, the probability that title failure
will occur with respect to any Title Defect that represents only a possibility of title failure, and such other factors as are necessary
to make a proper evaluation; and

 

(vi)         notwithstanding
anything to the contrary in this Article 3:

 

		(A)	an individual claim for a Title Defect for which a valid claim notice is given prior to the Claim Deadline
shall only generate an adjustment to the Purchase Price under this Agreement if the Title Defect Amount with respect thereto exceeds seventy-five
thousand dollars ($75,000) (the “Title Threshold Amount”);

 

		(B)	the aggregate Title Defect Amounts attributable to the effects of all Title Defects upon any given Oil &
Gas Interest shall not exceed the Allocated Value of such Oil & Gas Interest;

 

		(C)	the Title Defect Amount with respect to a Title Defect shall be determined without any duplication of
any costs or Losses included in another Title Defect Amount hereunder or for which Buyer otherwise receives credit in the calculation
of the Purchase Price; provided, however that if a Title Defect affecting any Lease for which an Allocated Value is set forth on
Annex 1 also affects any Well for which an Allocated Value is set forth on Annex 2, (A) any Title Defect Amount shall
be determined separately with respect to each Title Defect Property affected by the Title Defect and (B) any Title Defect Amount
with respect to a Lease shall be limited only to the interest in the Lease outside of the Well and, correspondingly, the Title Defect
Amount with respect to any Well will not include any portion of any Lease to the extent not attributable to the wellbore of the applicable
Well in question; and

 

		(D)	there shall not be any adjustment to the Purchase Price for any Title Defect under this Agreement unless
and until the sum of each individual Title Defect Amount (calculated separately for each Title Defect Property affected by the applicable
Title Defect) in excess of the Title Threshold Amount exceeds the Title Deductible Amount, after which time Buyer shall only be entitled
to an adjustment to the Purchase Price with regards to Title Defects for amounts in excess of the Title Deductible Amount and after giving
effect to any offset for Title Benefit Amounts as provided in Section 3.1(h)(vi).

 

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(h)            Title
Benefit Amount. The Title Benefit Amount resulting from a Title Benefit shall be determined as follows:

 

(i)          if
Buyer and Seller agree in writing upon the Title Benefit Amount, that amount shall be the Title Benefit Amount;

 

(ii)         if
the Title Benefit represents a discrepancy between (A) the Company’s aggregate Net Acre ownership in any Lease and (B) amount
of Net Acres shown for such Lease in Annex A-1, and there is no discrepancy between the aggregate Net Revenue Interest of the Company
in such Lease and the Net Revenue Interest set forth for such Lease in Annex A-1, then the Title Benefit Amount shall be the product
of the Allocated Value of such Lease multiplied by a fraction, the numerator of which is difference between the number of Net Acres owned
by the Company in such Lease and the number of Net Acres set forth for such Lease in Annex A-1, and the denominator of which is
the Net Acres set forth for such Lease in Annex A-1;

 

(iii)        if
the Title Benefit represents a discrepancy between (A) the Net Revenue Interest for any Oil & Gas Interest and (B) the
Net Revenue Interest stated with respect to such Oil & Gas Interest in Annex A-1 or Annex A-2, then the Title Benefit
Amount shall be the product of the Allocated Value of the affected Oil & Gas Interest multiplied by a fraction, the numerator
of which is the increase in the Company’s aggregate Net Revenue Interest in such Oil & Gas Interest and the denominator
of which is the Net Revenue Interest stated in Annex A-1 or Annex A-2 with respect to such Oil & Gas Interest;
provided, however, that if the Title Benefit does not affect an Oil & Gas Interest throughout the entire productive
life of the Lease or Well, the Title Benefit Amount determined under this Section 3.1(h) shall be reduced to take into
account the applicable time period only;

 

(iv)        if
a Title Benefit represents a right, circumstance, or condition of a type not described in subsections (i), (ii) or
(iii) of this Section 3.1(h), the Title Benefit Amount shall be determined by taking into account the Allocated
Value of the Lease or Well so affected, the portion of Seller’s interest in the Lease or Well so affected, the legal effect of the
Title Benefit, the potential discounted economic effect of the Title Benefit over the productive life of any affected Lease or Well, the
values placed upon the Title Benefit by Buyer and Seller, and such other factors as are necessary to make a proper evaluation;

 

(v)         notwithstanding
anything to the contrary in this Article 3, an individual claim for a Title Benefit shall only generate an adjustment to the
Adjustment Amount if the Title Benefit Amount with respect thereto exceeds the Title Threshold Amount; and

 

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(vi)        the
aggregate Title Benefit Amounts shall only be applied as an offset to the aggregate, finally determined Title Defect Amounts that individually
exceed the Title Threshold Amount and shall in no event increase the Purchase Price hereunder.

 

(i)            Dispute.

 

(i)          Seller
and Buyer shall attempt to agree on (A) the existence and Title Defect Amount for all Title Defects prior to Closing (or, with respect
to any Seller post-Closing curative work, on or before the Cure Deadline) and (B) the existence and Title Benefit Amounts for all
Title Benefits on or before the Closing. Any dispute with respect to the matters described in the preceding sentence that cannot be resolved
by mutual agreement of Seller and Buyer in the time periods provided shall be exclusively and finally resolved by arbitration under this
Section 3.1(i). If Buyer and Seller cannot agree upon the existence of a Title Defect (or cure thereof) or any Title Defect
Amount on or before the Closing Date, subject to Parties’ agreement to elect the remedy set forth in Section 3.1(f)(iii),
Seller shall convey each affected Title Defect Property (and any associated Oil & Gas Interest) to Buyer (indirectly by virtue
of conveying the Target Interests) at Closing and reduce the Closing Cash Payment by the Title Defect Amount set forth in the Title Defect
Notice for such Title Defect, taking into account the Title Threshold Amount and Title Deductible Amount, which Title Defect Amount will
be deposited into the Defect Escrow Account at Closing pending final resolution of such dispute in accordance with this Section 3.1(i).
Without limiting Seller’s continuing right to assert Title Benefits until the Closing, if Seller and Buyer cannot agree on the existence
of any Title Benefits or the applicable Title Benefit Amount for Title Benefits asserted on or before the Closing Date, the adjustments
to the Purchase Price at Closing with respect to Title Defects shall be offset by an amount equal to the Title Benefit Amount applicable
for such Title Benefit Property as determined in good faith by Seller.

 

(ii)         In
the event that any dispute is required to be resolved under this Section 3.1(i), the disagreement shall be resolved by a title
attorney with at least ten (10) years’ experience in oil and gas title matters in Colorado, who shall serve as the arbiter
of any such disagreements (the “Title Arbitrator”). The Title Arbitrator shall be selected by mutual agreement of Buyer
and Seller, or absent such agreement, within three (3) Business Days of becoming aware that such agreement cannot be made as to the
selection of the Title Arbitrator, by the office of the American Arbitration Association in Denver, Colorado. The Title Arbitrator shall
not have worked as an employee, contractor or outside counsel for any of the Parties or their Affiliates during the ten (10) year
period preceding the arbitration or have any financial interest in the dispute or any other interest, position or relationship that would
or might conflict with the proper performance of his or her duties as Title Arbitrator. The arbitration proceeding shall be held in Denver,
Colorado, and shall be conducted in accordance with the Commercial Arbitration Rules of the American Arbitration Association, to
the extent such rules do not conflict with the terms of this Section 3.1(i). The Title Arbitrator’s determination
shall be made on or before the thirtieth (30th) day after submission of appointment of the Title Arbitrator, and, absent manifest error,
shall be final and binding upon the Parties and enforceable against the Parties in any court of competent jurisdiction, without right
of appeal. In making its determination, the Title Arbitrator shall be bound by the terms set forth in this Section 3.1(i) and
may consider such other matters as in the opinion of the Title Arbitrator are necessary or helpful to make a proper determination. Additionally,
(A) the Title Arbitrator may consult with and engage disinterested Third Parties to advise the arbitrator, including landmen, other
title attorneys, and petroleum engineers, and (B) the Title Arbitrator shall choose either Seller’s position or Buyer’s
position with respect to each matter addressed in a Title Defect Notice or notice of Title Benefit. The Title Arbitrator shall act as
an expert for the limited purpose of determining the existence of a Title Defect (or cure thereof) or Title Benefit and the specific disputed
Title Defect Amounts and Title Benefit Amounts submitted by any Party and may not award damages, interest, or penalties to either Party
with respect to any other matter. Each of the Parties shall bear its own legal fees and other costs of presenting its case. The costs
and expenses of the Title Arbitrator shall be borne one half by Seller, on the one hand, and one half by Buyer, on the other hand. Within
two (2) Business Days following the final decision of the Title Arbitrator, Seller and Buyer shall execute and deliver a joint written
instruction to the Escrow Agent to release the Title Defect Amount (or portion thereof) from the Defect Escrow Account so determined to
be owed to either Party with respect to the applicable dispute, in accordance with such decision.

 

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(j)            Defect
Escrow Account. All amounts deposited into the Defect Escrow Account pursuant to the terms of this Article 3 or pursuant
to Article 4 shall be held, invested and disbursed in accordance with the terms of this Article 3, Article 4
and the Escrow Agreement pending the curing or resolution of the applicable alleged Title Defects or alleged Environmental Defects applicable
to such amounts. For the avoidance of doubt and notwithstanding anything to the contrary contained herein, (i) although established
pursuant to the Escrow Agreement, (A) the Defect Escrow Account (and all amounts deposited or held in the Defect Escrow Account pursuant
to this Agreement) shall be independent of and separate from (B) the Deposit Escrow Account established for the Deposit (and all
amounts deposited or held in the Deposit Escrow Account pursuant to this Agreement) and (ii) in no event shall any amounts (A) held
in the Defect Escrow Account be utilized for any purpose other than as expressly set forth in this Article 3 or Article 4
and (B) held in the Deposit Escrow Account be used for (1) any purpose for which funds held in the Defect Escrow Account are
to be used as set forth in this Article 3 or Article 4, or (2) any other purpose other than as expressly
set forth in Section 2.4 and Section 10.9. The Parties shall treat for purposes of this Agreement, including Tax
purposes, any amounts paid to Seller from the Defect Escrow Account pursuant to Section 3.1(f), Section 3.1(i),
or Section 4.5 as an adjustment to the Purchase Price.

 

Section 3.2             Exclusive
Rights and Obligations. THIS Article 3, Article 5, Article 7
and Section 9.1(a) and Section 9.1(b) SET FORTH THE SOLE AND EXCLUSIVE RIGHTS AND OBLIGATIONS OF
THE PARTIES WITH RESPECT TO TITLE MATTERS RELATING TO ANY ASSET OR PROPERTY OF THE COMPANY INCLUDING THE OIL & GAS ASSETS. THE
ONLY REPRESENTATIONS AND COVENANTS BEING MADE BY SELLER WITH RESPECT TO THE COMPANY’S TITLE TO THE OIL & GAS ASSETS ARE
SET FORTH IN THIS Article 3 AND Article 7 and REPRESENT BUYER’S SOLE AND EXCLUSIVE REMEDIES WITH RESPECT
TO TITLE TO THE OIL & GAS ASSETS. ANY AND ALL OTHER REPRESENTATIONS, WARRANTIES, OR COVENANTS OF TITLE BY THE COMPANY OR SELLER,
OF ANY KIND OR NATURE, EITHER EXPRESS, IMPLIED, OR STATUTORY, WITH RESPECT TO THE OIL & GAS ASSETS ARE HEREBY WAIVED AND
DISCLAIMED IN THEIR ENTIRETY.

 

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Article 4

ENVIRONMENTAL MATTERS

 

Section 4.1             Examination
Period. Subject to the other provisions of this Article 4, Buyer shall have the right during the Examination Period to
conduct, or cause its representatives to conduct, environmental due diligence on the Oil & Gas Assets on its own behalf and account
(“Independent Environmental Review”). The fees, costs, and expenses incurred by Buyer in conducting its Independent
Environmental Review or any other due diligence investigation shall be borne solely by Buyer.

 

Section 4.2             Access
to Oil & Gas Assets and Records. Subject to the limitations expressly set forth in this Agreement, including those set forth
in Section 9.1(d), Section 9.1(e), and Section 14.11, Seller shall provide Buyer and its representatives
access to the Oil & Gas Assets operated by the Company to conduct an environmental review and access to and the right to copy,
at Buyer’s sole expense, the records and other material environmental reports in the possession of Seller or the Company for the
purpose of conducting an environmental review of the Oil & Gas Assets, but only to the extent (a) that Seller or the Company,
as applicable, may do so without violating applicable Laws, and (b) Seller or the Company, as applicable, has authority to grant
such access without breaching any obligations to any Third Party or obligation of confidentiality binding on Seller, the Company or the
Oil & Gas Assets, as applicable. Seller shall use commercially reasonable efforts to obtain permission for Buyer to gain access
to Oil & Gas Assets operated by Third Parties and the records and files of such Third Parties to inspect the condition of such
properties, the Oil & Gas Assets, records and files. Such access by Buyer shall be limited to the normal business hours of the
Company or any Third Party operator of an Oil & Gas Asset, as applicable, and Buyer’s review shall be conducted in a manner
that minimizes interference with the operation of the business of the Company and any applicable Third Party operator. Except as required
by Law, Buyer and Buyer’s representatives shall keep and maintain confidential (and not disclose to any other Person, in whole or
in part) any results of (or reports or other documents arising from) Buyer’s Independent Environmental Review and shall use such
results, reports or other documents arising therefrom solely for purposes of Buyer’s diligence. Notwithstanding anything herein
to the contrary, Buyer shall only be entitled to conduct a Phase I Environmental Site Assessment that satisfies the basic requirements
set forth under the ASTM International Standard Practice for Environmental Site Assessments (Designation E1527-13 or any subsequent iteration),
a limited environmental compliance review or any other visual site assessment or review of records, reports or documents (a “Phase
I Environmental Site Assessment”) of the Oil & Gas Assets. For avoidance of doubt, Buyer shall not be permitted to
conduct any testing, sampling, boring, drilling, invasive or intrusive surface or subsurface activities, including a Phase II environmental
site assessment, on any portion of the Oil & Gas Assets without Seller’s prior written consent, which may be withheld by
Seller at its absolute discretion; provided, that, solely with respect to the Oil & Gas Assets operated by the Company,
if (i) any Phase I Environmental Site Assessment recommends any testing, sampling, boring, drilling, invasive or intrusive activities
to evaluate any potential Environmental Condition or Environmental Defect and (ii) Seller rejects Buyer’s request to conduct
such activities, then (A) notwithstanding anything to the contrary herein, Buyer shall have the right to assert an Environmental
Defect pursuant to Section 4.3 with respect to the Oil & Gas Asset(s) upon which Buyer is prevented from conducting
such activities due to Seller’s (or its designee’s) rejection of Buyer’s request and (B) Seller shall have the
right to cure or dispute Buyer’s assertion of such Environmental Defect pursuant to Sections 4.4 and 4.5, respectively.

 

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Section 4.3             Notice
of Environmental Defects.

 

(a)            Subject
to the other provisions of this Article 4, Buyer shall have the right, but not the obligation, in its sole discretion, by
delivery of a Notice to Seller that complies with Section 4.3(b) on or before the Claim Deadline (an “Environmental
Defect Notice”), to assert the existence of Environmental Defects with respect to the Oil & Gas Assets.

 

(b)            In
order to be valid for purposes of this Agreement, each Environmental Defect Notice asserting a claim for an Environmental Defect with
respect to any Oil & Gas Assets must be in writing and must include:

 

(i)          a
reasonably detailed description of the alleged Environmental Defect and the basis for such assertion under the terms of this Agreement;

 

(ii)         the
Oil & Gas Asset(s) affected by the alleged Environmental Defect (the “Environmental Defect Property”);

 

(iii)        if
applicable, the Allocated Value of each Environmental Defect Property;

 

(iv)        Buyer’s
good faith estimate of the Environmental Defect Amount and a description of the method used to calculate the amount; and

 

(v)        documents
and information reasonably necessary for Seller to review the existence of the alleged Environmental Defect and calculate the Environmental
Defect Amount.

 

(c)            No
claims for Environmental Defects may be submitted after the Claim Deadline, and any matters that may otherwise constitute Environmental
Defects, but for which Buyer has not delivered an Environmental Defect Notice to Seller prior to the Claim Deadline, shall be deemed to
have been waived by Buyer for all purposes. To give Seller an opportunity to commence reviewing and curing alleged Environmental Defects
asserted by Buyer, Buyer shall use commercially reasonable efforts to give Seller, on or before the end of each calendar week during the
Examination Period prior to the Claim Deadline, written notice of all alleged Environmental Defects discovered by Buyer during such calendar
week, which notices may be preliminary in nature and supplemented prior to the Claim Deadline, and which shall not constitute Environmental
Defect Notices unless they comply with the terms of Section 4.3(b); provided, that Buyer’s right to assert an
Environmental Defect shall not be prejudiced by any failure to provide such preliminary notice.

 

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Section 4.4       Cure
of and Remedies for Environmental Defects.

 

(a)      Seller
shall have the right, but not the obligation, to attempt, at Seller’s sole cost, to cure any Environmental Defect asserted by Buyer
in accordance with the Lowest Cost Response at any time prior to the Closing. If Seller elects to cure and completely cures an Environmental
Defect in accordance with the Lowest Cost Response prior to the Closing, then no Purchase Price adjustment will be made for such Environmental
Defect, and Buyer will be deemed to have waived such Environmental Defect for all purposes.

 

(b)     Subject
to Seller’s continuing right to dispute the existence of an Environmental Defect or the Environmental Defect Amount asserted with
respect thereto, in each case pursuant to Section 4.5, in the event that any Environmental Defect is not waived in writing
by Buyer or completely cured prior to Closing and Seller has not disputed such Environmental Defect or the Environmental Defect Amount
asserted thereto, then, subject to the Environmental Threshold Amount and the Environmental Deductible Amount: the Purchase Price shall
be reduced (as shall be reflected in the Adjustment Amount pursuant to Section 2.3(a)(ii)) by an amount equal to the remaining
Environmental Defect Amount or such other amount as may be agreed upon in writing by Seller and Buyer to be the reasonable estimate of
the remaining cost of curing such Environmental Defect at the Lowest Cost Response.

 

(c)      Notwithstanding
anything to the contrary herein, with respect to any disputed Environmental Defects as of the Closing Date, the Closing Cash Payment shall
be reduced by the Environmental Defect Amount set forth in the Environmental Defect Notice for such disputed Environmental Defect, taking
into account the Environmental Threshold Amount and the Environmental Deductible Amount, which Environmental Defect Amount will be deposited
into the Defect Escrow Account at Closing until such defect is finally resolved in accordance with Section 4.5. Subject to
the foregoing, from and after the Closing, Buyer and the Company shall be deemed to have assumed full responsibility for all costs and
expenses attributable to such operations as may be necessary to cure, remediate, address, remove or remedy any Environmental Defect (net
to the Oil & Gas Assets) and all Losses (net to the Oil & Gas Assets) with respect thereto.

 

Section 4.5       Dispute.

 

(a)     Seller
and Buyer shall attempt to agree on the existence and Environmental Defect Amount for all Environmental Defects prior to Closing. If,
with respect to any of the Oil & Gas Assets, Buyer and Seller cannot agree upon the existence of an Environmental Defect (or
cure thereof) or any Environmental Defect Amount on or before the Closing Date, (i) Seller shall convey the affected Oil &
Gas Asset to Buyer (indirectly by virtue of conveying the Target Interests) at Closing and reduce the Closing Cash Payment payable to
Seller at Closing by the Environmental Defect Amount set forth in the Environmental Defect Notice for the Environmental Defect, taking
into account the Environmental Defect Threshold and Environmental Deductible Amount, which Environmental Defect Amount will be deposited
into the Defect Escrow Account at Closing and (ii) such dispute shall be exclusively and finally resolved by arbitration under this
Section 4.5.

 

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(b)      Any
such dispute shall be resolved by a nationally recognized environmental attorney or consultant with at least ten (10) years’
experience in oil and gas environmental matters in the jurisdictions in which the Oil & Gas Assets are located, who shall serve
as the arbiter of any such disagreements (the “Environmental Arbitrator”). The Environmental Arbitrator shall be selected
by mutual agreement of Buyer and Seller, or absent such agreement, within three (3) Business Days of becoming aware that such agreement
cannot be made as to the selection of the Environmental Arbitrator, by the office of the American Arbitration Association in Denver, Colorado.
The Environmental Arbitrator shall not have worked as an employee, contractor or outside counsel for any of the Parties or their Affiliates
during the ten (10) year period preceding the arbitration or have any financial interest in the dispute or any other interest, position
or relationship that would or might conflict with the proper performance of his or her duties as Environmental Arbitrator. The arbitration
proceeding shall be held in Denver, Colorado, and shall be conducted in accordance with the Commercial Arbitration Rules of the American
Arbitration Association, to the extent such rules do not conflict with the terms of this Section 4.5. The Environmental
Arbitrator’s determination shall be made on or before the thirtieth (30th) day after submission of appointment of the Environmental
Arbitrator, and, absent manifest error, shall be final and binding upon the Parties and enforceable against the Parties in any court of
competent jurisdiction, without right of appeal. In making his or her determination, the Environmental Arbitrator shall be bound by the
terms set forth in this Section 4.5 and may consider such other matters as in the opinion of the Environmental Arbitrator
are necessary or helpful to make a proper determination. Additionally, (a) the Environmental Arbitrator may consult with and engage
disinterested Third Parties to advise the Environmental Arbitrator, including other environmental consultants and petroleum engineers,
and (b) the Environmental Arbitrator shall choose either Seller’s position or Buyer’s position with respect to each matter
addressed in an Environmental Defect Notice. The Environmental Arbitrator shall act as an expert for the limited purpose of determining
the existence of an Environmental Defect and the specific disputed Environmental Defect Amounts submitted by any Party and may not award
damages, interest or penalties to any Party with respect to any other matter. Any decision rendered by the Environmental Arbitrator pursuant
hereto shall be final, conclusive and binding on the Parties and will be enforceable against any of the Parties in any court of competent
jurisdiction. Each of the Parties shall bear its own legal fees and other costs of presenting its case. Within two (2) Business Days
following the decision of the Environmental Arbitrator, Seller and Buyer shall execute and deliver a joint written instruction to the
Escrow Agent to release the Environmental Defect Amount (or portion thereof) from the Defect Escrow Account so determined to be owed to
either Party with respect to the applicable dispute, in accordance with such decision. The costs and expenses of the Environmental Arbitrator
shall be borne one half by Seller, on the one hand, and one half by Buyer, on the other hand. Notwithstanding anything to the contrary
herein, any Oil & Gas Asset subject to dispute pursuant to this Section 4.5 shall be conveyed to Buyer at Closing
without adjustment to the Purchase Price and Buyer’s sole remedy with respect to any such dispute shall be compensation from the
Defect Escrow Account consistent with the Environmental Arbitrator’s decision.

 

Section 4.6       Limitations
on Environmental Defects. Notwithstanding anything in this Agreement to the contrary:

 

(a)      Buyer
shall not have any right to assert, or recover for hereunder (and no adjustment to the Purchase Price shall be made pursuant to this
Agreement for), any individual Environmental Defect with an Environmental Defect Amount less than one hundred fifty thousand dollars
($150,000) (the “Environmental Threshold Amount”);

 

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(b)      Buyer
shall not have any right to assert, or recover for hereunder (and no adjustment to the Purchase Price shall be made pursuant to this Agreement
for) any alleged Environmental Defect that is disclosed on Schedule 7.17 to this Agreement;

 

(c)      the
Parties agree that for purposes of calculating the Environmental Threshold Amount pursuant to Section 4.6(a), each Environmental
Defect shall be treated as an individual event or occurrence; provided, however, that Environmental Defects that represent
physical conditions resulting from the same event or underlying cause (e.g., oil stains) on the same Environmental Defect Property
may be aggregated for purposes of meeting the Environmental Threshold Amount; and

 

(d)      there
shall be no adjustment to the Purchase Price pursuant to this Agreement for any Environmental Defects unless and until the sum of each
Environmental Defect Amount in excess of the Environmental Threshold Amount exceeds the Environmental Deductible Amount, after which time
Buyer shall be entitled to adjustments to the Purchase Price pursuant to this Agreement only for amounts in excess of the Environmental
Deductible Amount.

 

Section 4.7       Exclusive
Rights and Obligations. The rights and remedies granted to Buyer in this Article 4
are the exclusive rights and remedies against Seller and THE COMPANY related to any Environmental Defect, or Losses related thereto, RELATING
TO ANY ASSET OR PROPERTY OF THE COMPANY, INCLUDING THE OIL & GAS ASSETS. Buyer expressly waives, and releases SELLER AND
ITS AFFILIATES, AND ALL OF their RESPECTIVE DIRECT AND INDIRECT EQUITYHOLDERS, PARTNERS, MEMBERS, DIRECTORS, OFFICERS, MANAGERS, EMPLOYEES,
AGENTS AND REPRESENTATIVES from, any and all other rights and remedies it may have under Environmental Laws against Seller regarding Environmental
DEFECTS, whether for contribution, indemnity or otherwise. The foregoing is a specifically bargained for allocation of risk among the
Parties, which the Parties agree and acknowledge satisfies the express negligence rule and conspicuousness requirement under Texas
law.

 

Article 5

CASUALTY & CONDEMNATION; CONSENTS

 

Section 5.1       Casualty
and Condemnation. Subject to the other terms of this Article 5 and Section 13.1(g), if at any time after the
Execution Date and prior to the Closing, any Oil & Gas Asset is (a) damaged or destroyed by casualty loss (not including
normal wear and tear, downhole mechanical failure or reservoir changes) or (b) expropriated or taken into condemnation or under right
of eminent domain (clauses (a) and (b) each, a “Casualty Loss”), (i) the Parties shall
nevertheless be required to consummate the Closing and (ii) at Closing, Seller, if applicable, shall contribute to the Company all
sums paid to Seller or its Affiliates (other than the Company) by Third Parties by reason of any Casualty Losses insofar as with respect
to the Oil & Gas Assets and shall assign, transfer and set over to the Company or subrogate the Company to all of Seller’s
(and its Affiliates’, but excluding the Company’s) right, title and interest (if any) in insurance claims, unpaid awards and
other rights, in each case, against Third Parties arising out of such Casualty Losses insofar as with respect to the Oil & Gas
Assets. Seller shall give Buyer prompt notice of any Casualty Loss of which Seller becomes aware, and Seller shall not voluntarily compromise,
settle or adjust any amounts payable by reason of any Casualty Loss without first obtaining the written consent of Buyer, which consent
may not be unreasonably withheld, conditioned or delayed.

 

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Section 5.2       Consents.

 

(a)      With
respect to each Consent set forth in Schedule 7.6, if any, Seller shall, within ten (10) Business Days of the Execution
Date, send to the holder of each such Consent a notice in material compliance with the contractual provisions applicable to such Consent
seeking such holder’s consent to the transactions contemplated hereby. If Buyer or Seller discovers any Consent following the Execution
Date that is not set forth in Schedule 7.6, Seller, within five (5) Business Days of the date Seller becomes aware of
such Consent, shall send to the holder of each such Consent a notice in material compliance with the contractual provisions applicable
to such Consent. Seller shall provide Buyer with (i) a copy of each notice and all other materials delivered to any such holder pursuant
to this Section 5.2 promptly after sending the same to such holder and (ii) copies of any written responses received
from any such holder promptly after receiving the same.

 

(b)     After
the Execution Date and prior to the Closing, the Company shall use commercially reasonable efforts, but excluding (i) making any
expenditures or payments or (ii) granting any accommodation (financial or otherwise) to any Third Party, to obtain consent, in form
and substance reasonably satisfactory to Buyer, from any party to a Contract with the Company to the extent that such consent is required
to be obtained in connection with the execution, delivery and performance of this Agreement and the Related Agreement, and the transactions
contemplated herein or therein. In addition to the foregoing, Buyer agrees to provide such assurances as to financial capability, resources
and creditworthiness as may be required by any Third Party whose consent is sought in connection with the transactions contemplated by
this Agreement and the Related Agreements. Neither Seller nor Company shall have any liability to Buyer or any of its Affiliates or any
other Person arising out of or relating to the failure of Seller or the Company to obtain any consent prior to the Closing.

 

Article 6

REPRESENTATIONS AND WARRANTIES REGARDING SELLER

 

Except for any exceptions
as set forth in the Schedules (with the applicability of such exceptions determined in accordance with Section 14.13 of this
Agreement), Seller hereby represents and warrants to Buyer as of the Execution Date and as of the Closing Date as follows:

 

Section 6.1       Organization.
Seller is duly organized, validly existing, and in good standing (or equivalent) under the Laws of the State of Delaware.

 

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Section 6.2       Authority.
Seller has the requisite limited liability company power and authority to execute and deliver this Agreement and the Related Agreements
to which it is or will be a party and to perform its obligations hereunder and thereunder. The execution, delivery, and performance of
this Agreement and the Related Agreements to which it is a party and the consummation of the transactions contemplated hereby and thereby
have been duly and validly authorized by all requisite action on the part of Seller.

 

Section 6.3       Enforceability.
This Agreement and each Related Agreement to which Seller is or will be a party has been, or at Closing will have been, duly and validly
executed and delivered by Seller and, assuming that this Agreement and each Related Agreement has been duly and validly executed and delivered
by the other parties hereto and thereto, constitutes, or when executed and delivered by Seller will constitute, a legal, valid and binding
agreement of Seller, enforceable against it in accordance with their terms, subject to (a) applicable bankruptcy, insolvency, reorganization,
moratorium, and other similar Laws of general application from time to time in effect that affect creditors’ rights generally, (b) general
principles of equity and (c) the power of a court to deny enforcement of remedies generally based upon public policy.

 

Section 6.4       Title
to Target Interests. Seller is the direct owner and beneficial owner of the Target Interests, free and clear of all Liens, except
for Liens (a) arising under federal and state securities Laws, (b) arising pursuant to the Governing Documents of the Company,
(c) arising or securing obligations under the Existing Credit Agreement or (d) imposed by Buyer or any of its Affiliates.

 

Section 6.5     No
Violation or Breach. Except as set forth on Schedule 6.5 and assuming receipt of all applicable consents required in connection
with the consummation of the transactions contemplated hereby, neither the execution and delivery of this Agreement nor the Related Agreements
to which Seller is or will be a party nor the consummation of the transactions and performance of the terms and conditions hereof or thereof
by Seller will (a) result in a violation or breach of any provision of the Governing Documents of Seller, (b) violate or conflict
with, or permit the cancellation, termination or acceleration by a Third Party of, or constitute a default (or an event that, with notice
or lapse of time or both, would become a default) under, require any consent of any Person pursuant to, result in the termination or acceleration
of the maturity of, or result in the loss of a material benefit or increase in any fee, liability, obligation under, any Contract under
which Seller is bound, or (c) violate or conflict with any Law applicable to Seller or its assets (including the Oil & Gas
Assets), except in the case of clauses (b) and (c) above, where such violation, conflict, cancellation, termination,
acceleration, default, consent, loss, increase, creation or imposition would not have a Company Material Adverse Effect.

 

Section 6.6       Brokerage
Arrangements. Except as set forth on Schedule 6.6, Seller has not entered into (directly or indirectly) any Contract with
any Person that would require the payment by the Company or Buyer of a commission, brokerage, or “finder’s fee,” or
other similar fee in connection with this Agreement, the Related Agreements, or the transactions contemplated hereby or thereby.

 

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Section 6.7       Investment
Intent. Seller: (a) is acquiring the Stock Consideration for its own account with the present intention of holding such shares
of Buyer Common Stock for investment purposes and not with a view to, or for offer or sale in connection with, any distribution thereof
in violation of the Securities Act or state securities Laws; (b) understands that the Stock Consideration will, upon issuance, be
characterized as “restricted securities” and has not been registered under the Securities Act or any applicable state securities
Laws; (c) is an “accredited investor,” as such term is defined in Rule 501(a) of Regulation D promulgated
under the Securities Act; (d) has sufficient knowledge, sophistication and experience in business and financial matters so as to
be capable of evaluating the merits and risks of the prospective investment in the Stock Consideration, and has so evaluated the merits
and risks of such investment in the Stock Consideration; and (e) is able to bear the economic risk of an investment in the Stock
Consideration and is able to afford a complete loss of such investment.

 

Section 6.8       Independent
Investment Decision. Seller has independently evaluated the merits of its decision to invest in the Stock Consideration pursuant to
this Agreement, and Seller confirms that it has not relied on the advice of any other Person’s business and/or legal counsel in
making such decision. Seller understands that nothing in this Agreement or any other materials presented by or on behalf of Buyer to Seller
in connection with its investment in the Stock Consideration constitutes legal, tax or investment advice. Seller has consulted such legal,
tax and investment advisors as it, in its sole discretion, has deemed necessary or appropriate in connection with its investment in the
Stock Consideration.

 

Section 6.9       Bankruptcy.
There are no bankruptcy, insolvency, receivership or similar Proceedings against Seller.

 

Article 7

REPRESENTATIONS AND WARRANTIES REGARDING THE COMPANy

 

Except for any exceptions
as set forth in the Schedules (with the applicability of such exceptions determined in accordance with Section 14.13 of this
Agreement), the Company hereby represents and warrants to Buyer as of the Execution Date and as of the Closing Date as follows:

 

Section 7.1       Organization.
The Company is a limited liability company duly formed, validly existing, and in good standing under the Laws of the State of Colorado.
The Company has the requisite limited liability company power and authority to own, lease and operate its properties, rights or assets,
carry on its businesses as now being conducted, and to carry out the transactions contemplated by this Agreement. The Company is duly
qualified or licensed to do business and in good standing (or equivalent) in each jurisdiction where the character of its business or
the nature of its properties, rights or assets makes such qualification or licensing necessary except where the failure to be so qualified
or be licensed would not have a Company Material Adverse Effect.

 

Section 7.2       Authority;
Governing Documents.

 

(a)      The
Company has the requisite limited liability company power and authority to execute and deliver this Agreement and the Related Agreements
to which it is or will become a party and to perform its obligations hereunder and thereunder. The execution, delivery, and performance
of this Agreement and the Related Agreements to which it is or will be a party and the consummation of the transactions contemplated hereby
and thereby have been duly and validly authorized by all requisite action on the part of the Company.

 

(b)      Seller
has made available to Buyer complete and accurate copies of the Governing Documents of the Company. The Company is not in breach of any
material provisions of any of its Governing Documents.

 

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Section 7.3       Enforceability.
This Agreement and each Related Agreement to which the Company is or will be a party has been, or at Closing will have been, duly and
validly executed and delivered by the Company and, assuming that this Agreement and each Related Agreement has been duly and validly
executed and delivered by the other parties hereto and thereto, constitutes, or when executed and delivered by Company will constitute,
a legal, valid and binding agreement of the Company, enforceable against it in accordance with its terms, subject to (a) applicable
bankruptcy, insolvency, reorganization, moratorium and other similar Laws of general application from time to time in effect that affect
creditors’ rights generally, (b) general principles of equity, and (c) the power of a court to deny enforcement of remedies
generally based upon public policy.

 

Section 7.4       Capitalization.

 

(a)      The
authorized Membership Interests of the Company consist solely of the Target Interests. All outstanding Membership Interests of the Company
are duly authorized and validly issued. Except for the Target Interests, there are no outstanding (i) Membership Interests or other
voting Securities of the Company, (ii) Securities of the Company or any other Person convertible into or exchangeable or exercisable
for Membership Interests or other voting Securities of, or any other interest in, the Company and (iii) subscriptions, options, warrants,
calls, rights (including preemptive rights), equity appreciation, phantom equity, profit participation, redemption rights, commitments,
understandings or agreements to which the Company is a party or by which it is bound obligating the Company to issue, grant, transfer,
convey, assign, deliver, sell, purchase, redeem or acquire Membership Interests or other voting Securities of, or any other interest in,
the Company (or Securities convertible into or exchangeable or exercisable for Membership Interests or other voting securities of, or
any other interest in, the Company) or obligating the Company to grant, extend or enter into any such subscription, option, warrant, call,
right, commitment, understanding or agreement. The Company has no subsidiaries and does not control, directly or indirectly, or have any
direct or indirect equity participation or own any equity Securities in, any Person.

 

(b)      No
Membership Interests of the Company have been reserved for issuance or issued in violation of, and none are subject to, any preemptive
rights, purchase or call options, subscription rights, rights of first refusal or other similar rights except as set forth in the Governing
Documents of the Company. At the Closing, there will be no member agreement, irrevocable proxies, voting trust or other agreement or understanding
relating to the voting of any Membership Interests of the Company. There are, and there will be as of the Closing, no outstanding stock
appreciation, phantom stock, profit participation or similar rights that are obligations of the Company. There are no bonds, debentures,
notes or other indebtedness of the Company having the right to vote or consent (or, convertible into, or exchangeable for, Securities
having the right to vote or consent) on any matters on which holders of Membership Interests of the Company may vote.

 

(c)      All
of the Membership Interests of the Company were issued in compliance with applicable Laws.

 

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Section 7.5       No
Violation or Breach. Except as set forth on Schedule 7.5, and assuming the receipt of all applicable consents required
in connection with the consummation of the transactions contemplated hereby, neither the execution and delivery of this Agreement nor
the Related Agreements to which it is or will be a party nor the consummation of the transactions and performance of the terms and conditions
hereof and thereof by the Company will (with or without notice or lapse of time), (a) result in a violation or breach of any provision
of the Governing Documents of the Company, board minutes or authorizing resolutions and written consents of the Company, (b) violate
or conflict with, or permit the cancellation, termination or acceleration by a Third Party of, or constitute a material default (or an
event that, with notice or lapse of time or both, would become a material default) under, require any consent of or notice to any Person
pursuant to, result in the termination or acceleration of the maturity of, or result in the loss of a material benefit or increase in
any fee, liability, obligation under, any Material Contract under which the Company is bound, (c) violate or conflict with any Law
applicable to the Company (including all COVID-19 Measures of any Governmental Authority applicable to the Oil & Gas Assets),
or (d) result in or require the creation or imposition of any Lien, other than a Permitted Encumbrance, upon or with respect to the
Company or the Target Interests, except in the case of clauses (b) and (c) above, where such violation, conflict,
cancellation, termination acceleration, default, consent, loss, increase, creation or imposition would not have a Company Material Adverse
Effect.

 

Section 7.6       Consents;
Preferential Rights. Except as set forth on Schedule 7.6 and except for any filings required under the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR Act”) (if applicable), (a) no material Consent, approval,
authorization, or permit of, or filing with or notification to, any Person is required for or in connection with the execution and delivery
of this Agreement and the Related Agreements to which it is or will be a party, by the Company or in connection with the consummation
of the transactions and performance of the terms and conditions contemplated hereby or thereby and (b) there are no Preferential
Purchase Rights or other similar rights that are applicable to the transfer of the Target Interests to Buyer or otherwise in connection
with the transactions contemplated hereby.

 

Section 7.7       Brokerage
Arrangements. Except as set forth on Schedule 7.7, neither the Company nor any of its Affiliates has entered into (directly
or indirectly) any Contract with any Person that would require the payment by the Company or Buyer of a commission, brokerage, or “finder’s
fee” or other similar fee in connection with this Agreement, the Related Agreements, or the transactions contemplated hereby or
thereby.

 

Section 7.8       Litigation.
Except as set forth on Schedule 7.8, (a) there are no Proceedings pending, or, to Company’s Knowledge, threatened
in writing, before any Governmental Authority or arbitrator with respect to the business conducted by the Company with respect to the
Oil & Gas Assets; (b) there are no Proceedings pending, or, to Company’s Knowledge, threatened in writing, before
any Governmental Authority or arbitrator against the Company; and (c) there are no Proceedings pending or, to Company’s knowledge
threatened, against the Company’s directors, officers or employees (in their capacity as such) (other than frivolous or immaterial
claims or demands). Except as set forth on Schedule 7.8, the Company is not subject to any material order, injunction, judgment
or decree of a Governmental Authority and the Company is not subject to any order that in any manner challenges or seeks to prevent,
enjoin, alter or delay the consummation of the transactions contemplated by this Agreement.

 

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Section 7.9       Compliance
with Laws. Except with respect to Environmental Laws (for which Seller’s sole representations and warranties are set forth in
Section 7.17) and except as disclosed on Schedule 7.9, to Company’s Knowledge, the Company’s
ownership and the operation of the Oil & Gas Assets is currently in compliance in all material respects with all applicable Laws
and has been since January 1, 2018 in all material respects. Since January 1, 2018, the Company has not received any written
notice expressly alleging a material violation of any Law (excluding compliance with Environmental Laws) with respect to the Oil &
Gas Assets that remains unresolved as of the Execution Date.

 

Section 7.10     Financial
Statements; Books and Records; Indebtedness.

 

(a)      Schedule 7.10(a) sets
forth copies of (collectively, the “Financial Statements”) (i) the Seller’s audited consolidated balance
sheet and related statements of operations, stockholders’ equity and cash flows for the fiscal year ended December 31, 2019
and December 31, 2020, and (ii)  the Company’s unaudited consolidated balance sheet and related income statement and cash
flow statement for the nine (9)-month periods ended September 30, 2020 and September 30, 2021 (the “Interim Financial
Statements”).

 

(b)      Except
as set forth on Schedule 7.10(a), or as otherwise disclosed in the notes thereto, and subject in the case of the Interim
Financial Statements, to the absence of footnotes and normal and recurring year-end adjustments, each Financial Statement presents fairly
in all material respects the consolidated financial condition of the Company as of the respective dates thereof, the consolidated cash
flows of the Company and the consolidated operating results of the Company for the periods covered thereby, in each case in conformity
with GAAP in all material respects, consistently applied and without modification of the accounting principles used in the preparation
thereof throughout the periods presented.

 

(c)      Except
as set forth on Schedule 7.10(a), all Indebtedness for Borrowed Money accrued under the Existing Credit Agreement as of the
Effective Time was accrued for the benefit of the Seller and its Subsidiaries.

 

Section 7.11      Undisclosed
Liabilities. Except as set forth on Schedule 7.11, the Company has no material liabilities that would be required to be set
forth in a balance sheet prepared in accordance with GAAP except:

 

(a)      Losses
to the extent reflected in the Financial Statements or expressly disclosed in the notes thereto;

 

(b)      Suspense
Funds;

 

(c)      asset
retirement obligations;

 

(d)      Imbalances;

 

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(e)      Asset
Taxes;

 

(f)       Other
Losses that have been incurred in the ordinary course of business consistent with past practices since December 31, 2020; or

 

(g)      Losses
expressly provided for under this Agreement or the Related Agreements that have been incurred in connection with the transactions contemplated
by this Agreement and are included in Transaction Expenses.

 

Section 7.12      No
Company Material Adverse Effect; Absence of Changes.

 

(a)      Since
December 31, 2020, no Company Material Adverse Effect has occurred.

 

(b)      Except
as set forth on Schedule 7.12(b), since December 31, 2020, the Company has conducted its business in the ordinary course
consistent with past practices, and other than in the ordinary course of business, the Company has not:

 

(i)        made
any material change in any method of accounting or accounting policies;

 

(ii)       instituted
or settled any material claim or lawsuit;

 

(iii)      accelerated,
delayed, or postponed the payment of any liabilities related to the business of the Company or the Oil & Gas Assets that individually
or in the aggregate are in excess of five hundred thousand dollars ($$500,000); or

 

(iv)     entered
into any contract or similar agreement to do any of the foregoing.

 

(c)      Except
as set forth on Schedule 7.12(c), since January 1, 2022, the Company has not taken any action which, if such action (or
the failure to take any action) would have occurred after the Execution Date, would be prohibited by, or require the consent of Buyer
pursuant to, Section 9.1(a) or Section 9.1(b).

 

Section 7.13      Taxes.

 

(a)      Except
as set forth on Schedule 7.13:

 

(i)        All
material Tax Returns required to be filed by the Company or otherwise with respect to Asset Taxes have been timely filed and such Tax
Returns are accurate, complete and correct in all material respects. All material Taxes due and payable by the Company, and all other
material Asset Taxes, have been duly and timely paid (whether or not shown on a Tax Return);

 

(ii)       The
Company has not made an election to defer the payment of any “applicable employment taxes” (as defined in Section 2302(d)(1) of
the CARES Act) pursuant to Section 2302 of the CARES Act or the presidential memorandum regarding Deferring Payroll Tax Obligations
in Light of the Ongoing COVID-19 Disaster signed on August 8, 2020;

 

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(iii)      All
Tax withholding and deposit requirements imposed on or with respect to the Company have been satisfied in full in all material respects;

 

(iv)      There
are no Liens for Taxes upon any assets of the Company except for Permitted Encumbrances;

 

(v)       There
is not currently in effect any extension of time with respect to the due date for the filing of any Tax Return of the Company or otherwise
with respect to Asset Taxes, or any extension or waiver of any statute of limitations of any jurisdiction regarding the assessment or
collection of any Taxes of the Company or otherwise with respect to Asset Taxes;

 

(vi)      No
claim has been made by a Taxing Authority in a jurisdiction where Seller or the Company does not file Tax Returns with respect to the
Company or the Oil & Gas Assets that it is subject to taxation by that jurisdiction with respect to the Company or the Oil &
Gas Assets;

 

(vii)    Neither
Seller nor the Company has received notice of any pending claim relating to Taxes of the Company or otherwise with respect to Asset Taxes,
and there is no assessment, deficiency, or adjustment (in each case, which remains unresolved) that has been asserted, proposed or, to
the Company’s Knowledge, threatened with respect to such Taxes;

 

(viii)    There
is no Tax audit or administrative or judicial proceeding being conducted, pending, or threatened against the Company or otherwise with
respect to Asset Taxes;

 

(ix)       The
Company is not a party to or bound by any Tax indemnity agreement, Tax sharing agreement, Tax allocation agreement, or similar contract
(other than any customary commercial agreement, the primary purpose of which does not relate to Taxes);

 

(x)        The
Company does not have any liability for the Taxes of any other Person (A) under Treasury Regulations Section 1.1502-6 (or any
similar provision of state, local or non-U.S. Tax Law), (B) as a transferee or successor, or (C) by Contract; and

 

(xi)       The
Company has not been a party to a transaction that is a “listed transaction,” as such term is defined in Treasury Regulations
Section 1.6011-4(b)(2), or any other transaction requiring disclosure under analogous provisions of U.S. state or local or non-U.S.
Tax Law.

 

(b)      The
Company is, and has been since its formation, classified as an entity disregarded as separate from Seller and no election has been made
to treat the Company as an association taxable as a corporation, in each case, for U.S. federal Income Tax purposes.

 

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(c)      No
Oil & Gas Asset or any other asset of the Company is subject to any tax partnership agreement or is otherwise treated, or required
to be treated, as held in an arrangement requiring a partnership Income Tax return to be filed under Subchapter K of Chapter 1 of Subtitle
A of the Code or any similar state statute.

 

(d)      The
representations and warranties in this Section 7.13 (i) along with the representations and warranties set forth in Section 7.12(c) and
Section 7.32, in each case, to the extent related to Taxes or Tax matters, constitute the sole and exclusive representations
and warranties in this Agreement with respect to Taxes or Tax matters and (ii) other than the representations and warranties in Section 7.13(a)(ix),
Section 7.13(b) and Section 7.13(c), may be relied upon solely with respect to taxable periods (or portions
thereof) beginning prior to the Closing Date.

 

Section 7.14      Contracts.

 

(a)      To
the Company’s Knowledge, Schedule 7.14(a) lists all Material Contracts as of the date hereof. Neither the Company,
nor, to the Company’s Knowledge, any other Person, is in material default under any Material Contract except as disclosed on Schedule 7.14(a).
To the Company’s Knowledge, all Material Contracts are in full force and effect. Except as disclosed on Schedule 7.14(a),
no written notice expressly alleging a default or breach of any Material Contract has been received or delivered by the Company under
any Material Contract, the resolution of which is outstanding as of the date hereof, and there are no current notices received by the
Company of the exercise of any premature termination, price redetermination, market-out, or curtailment of any Material Contract.

 

(b)      There
are no oral Contracts with respect to the Oil & Gas Assets that are still in force and effect or that were in effect at any time
from the Effective Time to the Closing.

 

(c)      Complete
and accurate copies of each Material Contract have been made available to Buyer on or prior to the Execution Date, other than copies of
joint operating agreements, samples of which have been provided as of the Execution Date and copies of which will be provided or made
available at Closing.

 

Section 7.15      Affiliate
Arrangements. Except (a) as set forth on Schedule 7.15 and (b) the Company’s Governing Documents, there
are no Contracts between (i) the Company or any of its directors, managers, officers, employees or consultants, or any members of
their immediate families, on the one hand, and (ii) Seller or its Affiliates (which, for the avoidance of doubt, does not include
the Company for purposes of this Section 7.15) or any of their respective directors, managers, officers, employees or consultants,
or any members of their immediate families, on the other hand. Except as set forth on Schedule 7.15, none of Seller or its Affiliates
(which, for the avoidance of doubt, does not include the Company for purposes of this Section 7.15) or any of their respective
directors, managers, officers, employees or consultants or any members of their immediate families (a) owns any Working Interest
in any of the Oil & Gas Assets, directly or indirectly, (b) licenses Intellectual Property (either to or from the Company),
or (c) is indebted to or, in the past three (3) years, has borrowed money from or lent money to, the Company (other than any
such Indebtedness for Borrowed Money that has been or will be discharged or extinguished at or prior to Closing) (any of the contracts
or arrangements described in this Section 7.15, collectively, “Affiliate Arrangements”).

 

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Section 7.16      Permits.
The Company possesses all Permits (except Environmental Permits) required (a) to own and operate the Oil & Gas Assets and
(b) to otherwise conduct the business of the Company, in each case, as currently conducted, except for such Permits the failure of
which to possess has not been, and would not reasonably be expected to be, material to the Company, taken as a whole. The Company is and
to the Company’s Knowledge any applicable Third Party operators are in compliance in all material respects with all Permits (except
Environmental Permits), and each of the material Permits is in full force and effect. No event has occurred which permits, or after the
giving of notice or lapse of time or both would permit, and the execution and delivery of this Agreement or any Related Agreement and
the consummation of the transactions contemplated hereby and thereby will not result in, the revocation or termination of any such Permit
or the imposition of any restrictions of such a nature as may limit the operation or use of the Oil & Gas Assets as historically
conducted. There are no Proceedings that might result in any modification, revocation, termination or suspension of any Permit or which
would require any corrective or remedial action by Seller or the Company.

 

Section 7.17      Environmental
Matters.

 

(a)      Except
as set forth on Schedule 7.17, (i)  the Company is not subject to any pending, or to the Knowledge of Seller or
the Company, threatened Proceedings alleging material violations of, or material liabilities under, any Environmental Law; (ii) neither
Seller nor the Company has (A) received any written notice from any Person alleging a material violation of or material liability
under any Environmental Laws with respect to the Company or any Oil & Gas Assets or notifying any material release, spill, disposal,
event, condition, circumstance, activity, practice or incident concerning any land, facility, asset or property included in the Oil &
Gas Assets or (B) entered into any material agreement with, or is subject to any material order, decree, plea, diversion agreement,
directive, consent or judgment issued by, a Governmental Authority pursuant to Environmental Laws that interferes with, requires a change
in or restricts the future operation, or that requires remediation of any part, of the Oil & Gas Assets, in either case of clause
(A) and (B) the subject of which is unresolved; and (iii)  to the Knowledge of Seller, the Company is, and since
January 1, 2020 has been, in material compliance with all Environmental Laws, including any Environmental Permits required for the
ownership and operation of its business, Oil & Gas Assets and properties; (iv) the Company (and, to the Knowledge of Seller
or the Company, any other Person to the extent giving rise to any material Environmental Liability of the Company) has not released, disposed
of or arranged for the disposal of, or exposed any Person to any Hazardous Materials, in each case in violation of Environmental Laws
or in a manner that could otherwise give rise to or result in any material Environmental Liability of the Company to any Person; and (v) the
Company furnished to Buyer all environmental site assessment reports and similar environmental reports and studies prepared in the last
year prior to the Execution Date (or earlier to the extent bearing on a material Environmental Liability of the Company that has not been
fully remediated) relating to the Company’s current operations and properties that are in their possession or reasonable control.

 

(b)      Except
as set forth on Schedule 7.17(b), the Company has obtained and is in possession of all material Environmental Permits that
are required for the ownership, operation or use of the Oil & Gas Assets or performance of the Material Contracts and, for the
last three (3) years, the Company was in possession when so required of all material Environmental Permits that were required for
the ownership, operation or use of the Oil & Gas Assets or performance of any Material Contracts. Unless otherwise indicated
on Schedule 7.17(b), no such Environmental Permits will be terminated or revoked upon the consummation of the transactions
contemplated hereby. The ownership, operation and use of the Oil & Gas Assets and the performance of the Material Contracts
are and for the last three (3) years have been in material compliance with the terms of all Environmental Permits, and there is
no Proceeding seeking the revocation, cancellation, suspension, modification or limitation of any Environmental Permits.

 

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Section 7.18      Insurance.
As of the Execution Date, Seller or its Affiliates, on behalf of the Company, has in place policies of insurance in amounts and scope
of coverage as set forth on Schedule 7.18, and each such policy is in full force and effect and all premiums are currently
paid in accordance with the terms of such policy. Except as set forth on Schedule 7.18, no claim relating to the Company or the
Oil & Gas Assets is outstanding under any of the policies set forth on Schedule 7.18., and no carrier of any such
policy has asserted any denial of coverage. Neither Seller nor the Company has received written notice of cancellation or any threatened
cancellation of any such insurance policies or premium increase or alteration of coverage with respect to any such insurance policies.

 

Section 7.19      Imbalances.
Except as set forth on Schedule 7.19, as of the date set forth on Schedule 7.19, Company does not have production,
transportation, plant, or other Imbalances with respect to production from the Oil & Gas Interests.

 

Section 7.20      Non-Consent
Operations. Except as set forth on Schedule 7.20, or as reflected in the before- and after-payout Working Interest and Net
Revenue Interest set forth the Annexes to this Agreement or Schedule 7.23, no operations are being conducted or have been conducted
with respect to the Oil & Gas Assets as to which the Company has elected to be a non-consenting party under the terms of the
applicable operating agreement and with respect to which the Company has not yet recovered its full participation.

 

Section 7.21      Current
Commitments. Except as set forth on Schedule 7.21, there are no outstanding authorities for expenditure which are binding on
the Oil & Gas Assets and which Seller reasonably anticipates will individually require expenditures by the Company after the
Closing Date in excess of five hundred thousand dollars ($500,000), net to the interest of the Company.

 

Section 7.22      Suspense
Funds. Schedule 7.22 lists all Suspense Funds as of the Effective Time. To the Company’s Knowledge, all proceeds
from the sale of Hydrocarbons produced from the Oil & Gas Assets are being received by the Company in a timely manner and are
not being held in suspense.

 

Section 7.23      Payout
Balances. To the Company’s Knowledge, Schedule 7.23 contains a list of the status as of the date(s) set forth
in such Schedule, of any “payout” balance for the Wells listed on Annex A-2 that are subject to a reversion or other
adjustment at some level of cost recovery or payout (or passage of time or other event other than termination of a Lease by its terms),
with such list, to the Company’s Knowledge, being true and correct in all material respects, assuming the accuracy of the information
provided by Third Parties.

 

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Section 7.24      Delivery
of Hydrocarbons. Except as set forth on Schedule 7.24, the Company is not obligated by virtue of a take-or-pay payment,
advance payment, or other similar payment (other than Royalties established in the Leases or reflected on Annex A-1 or Annex A-2,
minimum throughput commitments, Imbalances covered by Section 7.19, and gas balancing agreements or other agreements
relating to any of the foregoing), to deliver Hydrocarbons, or proceeds from the sale thereof, attributable to the Company’s interest
in the Oil & Gas Assets at some future time without receiving payment therefor at or after the time of delivery. Except as is
disclosed in Schedule 7.19 or Schedule 7.24, as of the respective dates shown thereon, neither Seller nor the
Company has received any written notice of deficiency payments under gas contracts for which any Person has a right to take deficiency
gas from the Oil & Gas Assets, nor has Seller nor the Company received any payments for production which are subject to refund
or recoupment out of future production.

 

Section 7.25      Royalties
and Working Interest Payments. Except (a) as set forth on Schedule 7.25 and (b) for the Suspense Funds, the
Company has properly and timely paid, or caused to be paid, in all material respects, all royalties, overriding royalties, production
payments, net profits interests and other similar burdens upon, measured by, or payable out of production and other interest owners’
revenues or proceeds attributable to sales of Hydrocarbons produced from or attributable to the Oil & Gas Assets in accordance
with the applicable Leases and applicable Laws, in each case, to the extent and only to the extent related to periods in which the Company
owned such Oil & Gas Assets prior to the Effective Time.

 

Section 7.26       Leases.
Other than as set forth on Schedule 7.26, or any frivolous or immaterial claims, during the six (6) month period prior to
the Execution Date, neither Seller nor the Company has received from any other party to a Lease any written notice from a lessor expressly
alleging a continuing or uncured material default on the part of the Company with respect to such Lease or expressly seeking to terminate
such Lease. To the Company’s Knowledge, no party to any Lease or Rights-of-Way or any successor to the interest of such party has
filed or, to the Company’s Knowledge, has threatened in writing to file any action to terminate, cancel, rescind or procure judicial
reformation of any such Lease or Rights-of-Way. There are no express unfulfilled drilling obligations under any of the Leases (excluding
any drilling obligation necessary to extend such Lease beyond its primary term).

 

Section 7.27      Wells
and Equipment. To the Company’s Knowledge, and except as set forth on Schedule 7.27:

 

(a)      all
Wells have been drilled and completed within the geographic limits permitted by all applicable Leases;

 

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(b)           no
Well is subject to penalties on allowables after the Effective Time because of any overproduction or any other violation of Laws;

 

(c)           there
are no Wells, platforms, or other Equipment located on the Oil & Gas Assets that the Company is obligated as of the Effective
Time by any Law to plug, dismantle, or abandon; and

 

(d)           all
currently producing Wells (and related Equipment) are in all material respects an operable state of repair adequate to maintain normal
operations in accordance with past practices, ordinary wear and tear excepted.

 

Section 7.28           Equipment.
All of the Equipment is in an operable state of repair adequate to maintain normal operations as currently operated and used by the Company,
in all material respects, ordinary wear and tear excepted, and the Company has rights to all Rights-of-Way, in each case, that are necessary
to access, own and operate the Equipment as currently accessed, owned and operated by the Company.

 

Section 7.29           [Reserved].

 

Section 7.30           Officers
and Bank Accounts. Schedule 7.30 lists all of the officers, directors, managers, bank accounts, safety deposit boxes
and lock boxes (designating each authorized signatory with respect thereto) of the Company (the “Bank Accounts”).
Schedule 7.30 sets forth a complete list of all Persons holding powers of attorney issued by the Company and a summary statement
of the terms thereof that remain in effect as of the Closing Date.

 

Section 7.31           Labor
Matters. The Company is not currently the W-2 issuing employer and in the last three (3) years has not been the W-2 issuing employer
of any employees. All employees or individual independent contractors who, during 2021, have provided or currently provide services to
the Company are employees or independent contractors of Seller or one of its Affiliates that is not the Company. The Company is not party
to or bound by any CBA.  There are no, and in the last three (3) years there have been no, labor organizing activities with
respect to the Company or any current or former employees in connection with their services to the Company.  In the last three (3) years,
there have been no actual or threatened unfair labor practice charges, material labor grievances or arbitrations, strikes, lockouts, work
stoppages, slowdowns, or other material labor disputes against or affecting Seller or any of its Affiliates (including the Company) with
respect to any current or former employees who have provided services to the Company. There are no, and in the last three (3) years
there have not been, any material pending or, to Seller’s Knowledge, threatened Proceedings against Seller or any of its Affiliates
(including the Company) by, on behalf of or with respect to current or former employees or independent contractors who have provided services
to the Company relating to compliance with applicable Laws regarding labor, employment or employment practices.

 

Section 7.32           Employee
Benefit Plans.

 

(a)           The
Company does not sponsor, maintain or contribute to (and has never sponsored, maintained or contributed to) any Employee Benefit Plans
and the Company does not have any actual or contingent liability or obligation with respect to any Employee Benefit Plans. For purposes
of this Agreement, an “Employee Benefit Plan” means an “employee benefit plan” (as such term is defined
in Section 3(3) of ERISA), and any equity-based, retirement, profit sharing, bonus, incentive, severance, separation, termination,
change in control, retention, deferred compensation, fringe benefit, vacation, paid time off, medical, dental, life, disability or other
employee benefit or compensation plan, program, policy, agreement or arrangement.

 

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(b)           None
of the Seller or any Person required to be treated as a single employer with the Seller under Section 414(b), (c), (m) or (o) of
the Code sponsors, maintains, contributes to, or has any liability with respect to any (i) single employer pension plan that is subject
to Section 302 or Title IV of ERISA or Section 412 of the Code (ii) “multiemployer plan” as defined in
Section 4001(a)(3) of ERISA, (iii) a “multiple employer plan” (as defined in Section 4063 or 4064 of ERISA),
(iv) “multiple employer welfare arrangement” (as defined in Section 3(40) of ERISA), or (v) “defined
benefit plan” (as defined in Section 3(35) of ERISA). The Company does not have current or contingent liability or obligations
as a consequence of at any time being considered a single employer with any other Person under Section 414(b), (c), (m) or (o) of
the Code.

 

(c)           Except
as set forth on Schedule 7.32(c), neither the execution or delivery of this Agreement nor the consummation of the transactions
contemplated by this Agreement will (either alone or together with any other event) (i) cause any payment or benefit to become due
or payable, or required to be provided, by the Company to any Active Worker or (ii) increase the amount or value of any benefit,
compensation or other material obligation otherwise payable or required to be provided by the Company to any such Active Worker.

 

Section 7.33           Bonds;
Letters of Credit and Guarantees.

 

(a)           Schedule 7.33(a) identifies
the bonds, letters of credit, cash collateral and guarantees posted (or supported) by Seller or the Company with respect to the Oil &
Gas Assets.

 

(b)           Except
as set forth on Schedule 7.33(a), Schedule 7.33(b) identifies all sinking funds, reserves, escrows, cash
deposits, financial instruments, surety agreements and similar agreements, guarantees and other items of credit support that the Company
is liable for or is binding on any of the Oil & Gas Assets.

 

(c)           As
of the Closing, except as set forth on Schedule 7.33(a), Schedule 7.33(b) or Schedule 7.33(c), neither
Buyer nor the Company has any obligation (whether pursuant to applicable Law or contract or otherwise) to post any surety bond, letter
of credit, cash collateral, guarantee or other form of support (credit or otherwise) with respect to the Company or the Oil &
Gas Assets.

 

Section 7.34           Special
Warranty. Effective as of the Closing Date, the Seller hereby represents and warrants that the Company has Defensible Title to the
Oil & Gas Assets, subject to Permitted Encumbrances, unto Buyer against the lawful claims of all Persons claiming the same,
or any part thereof, in each case, by through and under the Company and its Affiliates, but not otherwise. For the avoidance of doubt
and notwithstanding anything in this Agreement to the contrary, the Title Threshold Amount and the Title Deductible Amount shall in no
way limit any claim by Buyer pursuant to this Section 7.34.

 

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Section 7.35           Intellectual
Property. (a) The Company owns, or has valid licenses or other rights to use, all material Intellectual Property necessary for
the operation of its business, subject to any limitations contained in the agreements governing the use of the same, free and clear of
all Liens (other than Permitted Encumbrances), (b) neither Seller nor the Company has received written notice expressly challenging
the use thereof, (c) neither Seller nor the Company has received written notice that the conduct of its business is infringing, misappropriating
or otherwise violating the Intellectual Property of any other Person, nor is any third party infringing on any Intellectual Property owned
by the Company and (d) neither Seller nor the Company has received any written notice of any default or any event that with
notice or lapse of time, or both, would constitute a material default under any Intellectual Property license to which the Company is
a party or by which it is bound. The items of Intellectual Property set forth on Schedule 7.35 are owned or licensed by Seller
or its Affiliates and are not expected to be available to the Company after the Closing.

 

Section 7.36           Bankruptcy.
There are no bankruptcy, insolvency, receivership or similar Proceedings against the Company. The Company is now solvent and will not
be rendered insolvent by any of the transactions contemplated by this Agreement or any Related Agreement.

 

Section 7.37           Specified
Matters. Except as set forth on Schedule 7.37, there are no Losses incurred by, suffered by or owing by the Company as
of the Closing caused by, arising out of, or resulting from the following matters, to the extent attributable to the ownership, use or
operation of any of the Oil & Gas Assets, except with respect to any Casualty Losses, any third party injury or death, or damage
of third party properties (excluding any such property damage that is properly charged or chargeable to the joint account by the operator
under the applicable operating or unit agreement) occurring on or with respect to the ownership or operation of any Oil & Gas
Assets prior to the Closing Date (collectively, the “Specified Matters”).

 

Article 8

REPRESENTATIONS AND WARRANTIES REGARDING BUYER

 

On the terms and subject
to the conditions of this Agreement and except (a) for any exceptions as set forth in the Schedules (with the applicability of such
exceptions determined in accordance with Section 14.13 of this Agreement), and, (b) solely with respect to the
representations and warranties included in Section 8.11, Section 8.14 and Section 8.16, as set forth in the Buyer SEC Reports filed
with the SEC prior to the Execution Date (but (i) excluding any disclosure contained in any such Buyer SEC Reports under the heading
 “Risk Factors” or “Cautionary Note Regarding Forward-Looking Statements” or similar headings and (ii)
without giving effect to any amendment thereof or supplement thereto filed with, or furnished to the SEC on or after the date
hereof) but only to the extent (A) such Buyer SEC Reports are publicly available on EDGAR and (B) the relevance of the applicable
disclosures as an exception to the applicable representations and warranties is reasonably apparent on the face of such disclosure,
Buyer hereby represents and warrants to Seller and the Company as of the Execution Date and as of the Closing Date:

 

Section 8.1           Organization.
Buyer is a corporation, duly organized, validly existing, and in good standing (or equivalent) under the Laws of Delaware and has
the requisite corporate power to carry on its business as now being conducted. Buyer has all requisite power and authority to own,
lease and operate its properties, rights or assets, carry on its businesses as now being conducted, and to carry out the
transactions contemplated by this Agreement.

 

Section 8.2           Authority.
Buyer has all requisite power and authority to execute and deliver this Agreement and the Related Agreements to which it is a party
and to perform its obligations hereunder and thereunder. The execution, delivery and performance of this Agreement and the Related
Agreements to which Buyer is a party and the consummation of the transactions contemplated hereby and thereby have been duly and
validly authorized by all requisite action on the part of Buyer and no other corporate proceedings on the part of Buyer are
necessary to approve this Agreement or to consummate the transactions contemplated hereby.

 

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Section 8.3           Enforceability.
This Agreement and each Related Agreement to which Buyer is or will be a party has been duly and validly executed and delivered by
the Buyer and, assuming that this Agreement and each Related Agreement has been duly and validly executed and delivered by the other
parties hereto and thereto, constitutes a legal, valid and binding agreement of Buyer, enforceable against it in accordance with its
terms, subject to (a) applicable bankruptcy, insolvency, reorganization, moratorium and other similar Laws of general
application from time to time in effect that affect creditors’ rights generally, (b) general principles of equity, and
(c) the power of a court to deny enforcement of remedies generally based upon public policy.

 

Section 8.4           No
Violation or Breach. Assuming receipt of all applicable consents required in connection with the consummation of the transactions
contemplated hereby, neither the execution and delivery of this Agreement nor the Related Agreements to which Buyer is or will be a party
nor the consummation of the transactions and performance of the terms and conditions hereof and thereof by Buyer will (a) result
in a violation or breach of any provision of the Governing Documents of Buyer, (b) violate or conflict with, or permit the cancellation,
termination or acceleration by a Third Party of, or constitute a default (or an event that, with notice or lapse of time or both, would
become a default) under, require any consent of any Person pursuant to, result in the termination or acceleration of the maturity of,
or result in the loss of a material benefit or increase in any fee, liability, obligation under, any Contract under which Buyer is bound,
(c) violate or conflict with any Law applicable to Buyer or the assets of Buyer or (d) result in or require the creation or
imposition of any Lien upon or with respect to any property or assets of Buyer.

 

Section 8.5           Consents.
No consent, approval, authorization, or permit of, or filing with or notification to, any Person is required for or in connection
with the execution and delivery of this Agreement by Buyer (or any Related Agreement to which Buyer is or will be a party) or for or
in connection with the consummation of the transactions and performance of the terms and conditions contemplated hereby and thereby,
including, without limitation, the issuance of the Adjusted Stock Consideration.

 

Section 8.6           Litigation.
Neither Buyer nor any of its assets are subject to any pending or, to the Buyer’s Knowledge, threatened Proceeding at law or
in equity or any order, injunction, judgment or decree of a Governmental Authority which could reasonably be expected to have the
effect of restricting, making illegal or otherwise prohibiting (a) Buyer’s ability to perform its obligations under this
Agreement or the Related Agreements or (b) the consummation of the transactions contemplated by this Agreement and the Related
Agreements.

 

Section 8.7           Bankruptcy.
There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated by or, to Buyer’s Knowledge,
threatened against Buyer or any of their Affiliates.

 

Section 8.8           Brokerage
Arrangements. Buyer and its Affiliates have not entered into (directly or indirectly) any Contract with any Person that would require
the payment by Seller or any of its Affiliates of a commission, brokerage, “finder’s fee” or other similar fee in connection
with this Agreement, the Related Agreements or the transactions contemplated hereby or thereby.

 

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Section 8.9           Solvency.
At and immediately after the Closing, and after giving effect to the transactions contemplated by this Agreement, including the
receipt of any financing, any repayment or refinancing of debt, payment of all amounts required to be paid in connection with the
consummation of the transactions contemplated hereby, and payment of all related fees and expenses, Buyer and the Company will be
Solvent. No transfer of property is being made and no obligation is being incurred in connection with the transactions contemplated
by this Agreement and the Related Agreements with the intent to hinder, delay or defraud either present or future creditors of Buyer
or the Company.

 

Section 8.10           Funds.
Buyer has and will have on the Closing Date sufficient unrestricted cash on hand sufficient to pay the Adjusted Cash Consideration and
all of Buyer’s and its Affiliates’ fees and expenses associated with the transactions contemplated in this Agreement. Buyer
acknowledges and agrees that the obligations of Buyer under this Agreement and the Related Agreements are not in any way contingent upon
or otherwise subject to Buyer’s consummation of any financing arrangement or obtaining any financing or the availability, grant,
provision or extension of any financing to Buyer.

 

Section 8.11           Capitalization.

 

(a)           As
of January 31, 2022 (the “Buyer Capitalization Date”), the authorized capital of Buyer consists solely of
250,000,000 shares of capital stock, consisting of (i) 225,000,000 shares of Buyer Common Stock, of which 84,848,986 shares
were issued and outstanding as of the date of this Agreement, 25,438 shares were subject to options, 415,195 were restricted stock
units under Buyer’s Long Term Incentive Plan and 235,458 were performance stock units (with performance-based awards reflected
at the target award level) under Buyer’s Long Term Incentive Plan, and 58,910 were restricted stock units under the NYSE
Inducement Award Exception, (ii) 25,000,000 shares of preferred stock, par value $0.01 per share, of which no shares were
issued and outstanding as of the date of this Agreement, and (iii) 3,402,633 warrants to purchase Buyer Common Stock outstanding at an exercise price of $91.91 and 17,013,440 warrants to purchase
Buyer Common Stock outstanding at an exercise price of $104.45, in each case, on the terms and conditions set forth in the applicable
warrant agreement. All of the issued and outstanding shares of Buyer’s common stock
have been validly issued, are fully paid and non-assessable, and were not issued in violation of any preemptive rights, resale
rights, rights of first refusal or similar rights.

 

(b)           Except
as set forth in Section 8.11(a) and other than the shares of Buyer Common Stock that have become outstanding after the
Buyer Capitalization Date that were reserved for issuance as set forth in Section 8.11(a), as of the Execution Date: (i) Buyer
does not have any shares of capital stock or other equity or voting interests issued or outstanding and (ii) there are no outstanding
subscriptions, options, warrants, puts, calls, exchangeable or convertible Securities or other similar rights, agreements or commitments
or any other Contract to which Buyer or any Subsidiary of Buyer is a party or is otherwise bound obligating Buyer or any Subsidiary of
Buyer to (A) issue, transfer or sell, or make any payment with respect to, any shares of capital stock or other equity or voting
interests of Buyer or any Subsidiary of Buyer or Securities convertible into exchangeable for or exercisable for, or that correspond to,
such shares or equity or voting interests, (B) grant, extend or enter into any such subscription, option, warrant, put, call, exchangeable
or convertible Securities or other similar right, agreement or commitment, or (C) redeem or otherwise acquire any such shares of
capital stock or other equity or voting interests.

 

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(c)           Neither
Buyer nor any Subsidiary of Buyer has outstanding bonds, debentures, notes or other similar obligations, the holders of which have the
right to vote (or which are convertible into or exercisable for Securities having the right to vote) with the stockholders of Buyer on
any matter.

 

Section 8.12           Buyer
Common Stock. Buyer has, and at Closing will have, sufficient duly authorized shares of Buyer Common Stock to enable it to issue
the Adjusted Stock Consideration to Seller.

 

Section 8.13           Issuance
of Adjusted Stock Consideration. The issuance of the Adjusted Stock Consideration contemplated pursuant to this Agreement has been
duly authorized, and, upon issuance of the Adjusted Stock Consideration to Seller or its designees at Closing, the Adjusted Stock Consideration
will be validly issued, fully paid, non-assessable, issued without application of preemptive rights, will have the rights, preferences
and privileges specified in Buyer’s Governing Documents, and will be free and clear of all Liens and restrictions, other than the
restrictions imposed by applicable federal and state securities Laws. The Adjusted Stock Consideration will not be issued in violation
of and will not be subject to any preemptive rights, resale rights, rights of first refusal or similar rights. Assuming the accuracy
of the representations and warranties of Seller contained in this Agreement (or any representation of any designee of Seller to receive
Adjusted Stock Consideration made pursuant to Section 2.3(d) hereof), the sale and issuance of the Adjusted Stock Consideration
pursuant to this Agreement are exempt from the registration requirements of the Securities Act.

 

Section 8.14           Buyer
SEC Reports; Financial Statements.

 

(a)           Buyer
has filed or furnished all forms, statements, schedules, reports and other documents with the SEC required to be filed or furnished by
it since December 31, 2020 and Buyer has made available to Seller via EDGAR all such forms, reports and other documents. All such
forms, reports and other documents, including any audited or unaudited financial statements and any notes thereto or schedules included
therein (including those that Buyer may file after the Execution Date and prior to the Closing Date) are referred to herein as the “Buyer
SEC Reports.” The Buyer SEC Reports (i) were filed on a timely basis, (ii) comply in all material respects with the
applicable requirements of the Exchange Act and the rules and regulations of the SEC thereunder and (iii) did not, at the time
they were filed (except to the extent corrected or superseded by a subsequent Buyer SEC Report filed by Buyer prior to (A) the Execution
Date, for purposes of evaluating the accuracy of this representation and warranty as of the Execution Date; and (B) the Closing Date,
for purposes of evaluating the accuracy of this representation and warranty as of the Closing Date) include any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading.

 

(b)           As
of their respective dates, the financial statements included in the Buyer SEC Reports (i) comply in all material respects with applicable
accounting requirements and with the published rules and regulations of the SEC with respect thereto, (ii) were prepared in
accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto or, in
the case of unaudited statements, subject to normal year-end audit adjustments or otherwise as permitted by Form 10-Q of the SEC),
and (iii) fairly present (subject in the case of unaudited statements to normal, recurring and year-end audit adjustments) in all
material respects the consolidated financial position of Buyer and, to the Knowledge of Buyer, each of HighPoint Resources Corporation,
a Delaware corporation; Crestone Peak Resources America Inc., a Delaware corporation; and Extraction Oil & Gas, Inc., a
Delaware corporation, as applicable, in each case, as of the dates thereof and the consolidated results of its operations and cash flows
for the periods then ended.

 

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(c)           Since
December 31, 2020, no Buyer Material Adverse Effect has occurred.

 

Section 8.15           NYSE
Listing. The Buyer Common Stock is listed on the NYSE, and Buyer has not received any notice of delisting. No judgment, order, ruling,
decree, injunction or award of any securities commission or similar securities regulatory authority or any other Governmental Authority,
or of the NYSE, preventing or suspending trading in any Securities of Buyer has been issued, and no Proceedings for such purpose are,
to the Knowledge of Buyer, pending, contemplated, or threatened. Subject to the NYSE listing approval with respect to the Adjusted Stock
Consideration, the issuance and sale of the Adjusted Stock Consideration does not contravene NYSE rules and regulations.

 

Section 8.16           Internal
Controls and Procedures.

 

(a)           Buyer
maintains “internal control over financial reporting” (as defined in Rule 13a-15(f) of the Exchange Act) that has
been designed by, or under the supervision of, its principal executive and principal financial officers, or persons performing similar
functions, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements
for external purposes in accordance with GAAP and that include those policies and procedures that (i) pertain to the maintenance
of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of the assets of the Buyer; (ii) provide
reasonable assurance that transactions are recorded as necessary to permit the preparation of financial statements in accordance with
GAAP and that receipts and expenditures of the Buyer are being made only in accordance with the authorizations of management and the directors
of the Buyer; (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition
of the Buyer’s assets that could be material to the Buyer’s financial statements; and (iv) provide reasonable assurance
that the interactive data in eXtensible Business Reporting Language incorporated by reference in the Buyer SEC Reports fairly presents
the required information in all material respects and has been prepared in accordance with the SEC’s rules and guidelines applicable
thereto.

 

(b)           Buyer
maintains “disclosure controls and procedures” (as defined in Rule 13a-15(e) of the Exchange Act) that are designed
to ensure that information required to be disclosed by the Buyer in reports that it files or submits under the Exchange Act is recorded,
processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including controls and procedures
designed to ensure that such information is accumulated and communicated to the Buyer’s management as appropriate to allow timely
decisions regarding required disclosure. Buyer has carried out evaluations of the effectiveness of its disclosure controls and procedures
as required by Rule 13a-15 of the Exchange Act and such disclosure controls and procedures were effective as of the end of the Buyer’s
most recently completed fiscal quarter.

 

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Section 8.17           Form S-3.
As of the Execution Date, Buyer is eligible to register the resale of the shares of Buyer Common Stock comprising the Adjusted Stock Consideration
under Form S-3 promulgated under the Securities Act.

 

Article 9

ADDITIONAL AGREEMENTS AND COVENANTS

 

Section 9.1           Interim
Covenants; Site Access.

 

(a)           Affirmative
Covenants of the Company. From the Execution Date until the Closing Date (or, if earlier, the date this Agreement is terminated pursuant
to Section 13.1), except as otherwise contemplated or permitted by this Agreement, Seller shall cause the Company to:

 

(i)           use
commercially reasonable efforts to operate the Company’s business and the Oil & Gas Assets in the ordinary course in all
material respects consistent with past practice and subject to the terms of this Agreement;

 

(ii)           maintain
the books of account and records relating to the Company and the Oil & Gas Assets in the usual, regular and ordinary manner,
in accordance with its usual accounting practices;

 

(iii)           preserve
substantially intact the present business organization of the Company;

 

(iv)           use
commercially reasonable efforts to preserve in all material respects in the ordinary course of business the present relationships with
Active Workers, independent contractors, customers and suppliers, in each case, of the Company;

 

(v)           maintain
the Bank Accounts in the ordinary course of business, consistent with past practice;

 

(vi)           use
its commercially reasonable efforts to maintain insurance coverage on the Oil & Gas Assets set forth on Schedule 7.18
in the amounts and of the types set forth on Schedule 7.18 or, upon renewal thereof, in similar amounts and types to
the extent then available on commercially reasonable terms and prices;

 

(vii)           use
its commercially reasonable efforts to maintain all material Permits which have been maintained by Seller or the Company as of the Execution
Date (if any) in effect that are necessary or required to operate the Oil & Gas Assets that are currently operated by the Company;

 

(viii)           use
its commercially reasonable efforts to maintain all Credit Support, in each case, to the extent maintained by Seller or the Company as
of the Execution Date (if any) and required to own and/or operate the Oil & Gas Assets in the ordinary course consistent with
past practices;

 

(ix)           provide
Buyer with a copy of any AFE or similar request from a third party with respect to the Oil & Gas Assets as soon as is reasonably
practicable, and thereafter reasonably consult with Buyer regarding whether or not the Company should elect to participate in such operation;
provided, that this Section 9.1(a)(ix) shall be subject to and shall not limit Section 9.1(b)(viii) and
Section 9.1(b)(ix);

 

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(x)           keep
Buyer reasonably apprised of any drilling, re-drilling, completion or other material field operations proposed or conducted with respect
to any Oil & Gas Assets; provided, that this Section 9.1(a)(x) shall be subject to and shall not limit
Section 9.1(b)(viii) and Section 9.1(b)(ix);

 

(xi)           promptly
notify Buyer of any proposed unitization, communitization and/or similar arrangements and/or applications or any well proposals related
to the Oil & Gas Assets of which Seller or the Company becomes aware, and not protest such proposed unitization, communitization
and/or similar arrangement and/or application related to such Oil & Gas Assets without Buyer’s prior written consent; and

 

(xii)           provide
Buyer with a copy of any other material notices received from any Governmental Authority pertaining to the Oil & Gas Assets
or the Company.

 

(b)           Negative
Covenants of the Company. Without limiting Section 9.1(a), except (1) for actions taken in connection with emergency
situations or to maintain a Lease or as may be required by Law, (2) as expressly consented to in writing (including by email in accordance
with Section 14.1) by Buyer (which consent shall not be unreasonably withheld, delayed or conditioned), (3) as set forth
on Schedule 9.1(b), or (4) for operations covered by AFEs described on Schedule 7.21, from the Execution
Date until the Closing Date (or, if earlier, the date this Agreement is terminated pursuant to Section 13.1) Seller shall
not permit the Company to (and shall cause the Company to not):

 

(i)           (A) split,
combine, subdivide or reclassify any Target Interests or (B) redeem, retire or repurchase, or otherwise acquire, any Target Interests
or any outstanding options, warrants or rights of any kind to acquire any Target Interests, or any outstanding Securities that are convertible
into or exchangeable for any Target Interests;

 

(ii)           adopt
any amendments to the Governing Documents of the Company;

 

(iii)           other
than inventory and other assets acquired in the ordinary course of business and utilized in the operations of the Company, acquire properties
or assets, including stock or other equity interests of another Person, with a value in excess of one hundred and fifty thousand dollars
($150,000), whether through asset purchase, merger, consolidation, share exchange, business combination or otherwise;

 

(iv)           except
as set forth in Section 9.1(a)(xi) hypothecate, encumber, sell, transfer or dispose of any portion of the Oil &
Gas Assets, other than (A) inventory, spare parts, or equipment that is no longer necessary in the operation of the Oil &
Gas Assets or for which replacement equipment of equal or greater value has been obtained or (B) the sale of Hydrocarbons produced
from the Oil & Gas Assets, in each case, in the ordinary course of business;

 

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(v)           (A) make
or change any material election relating to Taxes, (B) settle or compromise any material Tax liability (other than the payment of
Taxes or collection of refunds, in each case, in the ordinary course of business), (C) change any annual Tax accounting period, (D) adopt
or change any method of Tax accounting, (E) file any amended Tax Return, (F) surrender any right to claim a material Tax refund,
or (G) consent to any extension or waiver of the statute of limitations period applicable to any Tax claim or assessment, in each
case, to the extent relating to Taxes of the Company or otherwise with respect to Asset Taxes;

 

(vi)           adopt
a plan of complete or partial liquidation or dissolution, otherwise adopt resolutions providing for or authorizing a liquidation, dissolution,
merger, consolidation, restructuring, recapitalization or other reorganization of the Company, or file a petition in bankruptcy under
any provisions of federal or state bankruptcy Law or consent to the filing of any bankruptcy petition against it under any similar Law;

 

(vii)           change
accounting methods, except as required by changes in GAAP or Law, or as recommended by its independent accountants;

 

(viii)           conduct,
agree to, or propose any operations on the Oil & Gas Assets anticipated to cost (net to the Oil & Gas Assets) in excess
of one hundred and fifty thousand dollars ($150,000) per operation; provided that with respect to emergency operations, the Company
shall notify Buyer of such emergency as soon as reasonably practicable following receipt of written notice from any Third Party operator;

 

(ix)           make
any non-consent election with respect to any operation proposed by a Third Party on the Oil & Gas Assets without consulting
with Buyer;

 

(x)           other
than in the ordinary course of business, enter into any new Contract that, if entered into prior to the Execution Date, would be required
to be listed on Schedule 7.14(a), or renew, terminate, extend, novate or materially modify or amend any Material Contract,
or waive, delay the exercise of, assign or release any material rights or claims thereunder;

 

(xi)           institute
any Proceeding, or enter into, or offer to enter into, any compromise, release or settlement of any Proceeding pertaining to the Oil &
Gas Assets or the Company, or waive or release any material right of the Company for which the amount in controversy is reasonably expected
to be in excess of one hundred fifty thousand dollars ($150,000), net to Company’s interest, other than any settlement, release
or compromise that involves only a payment from Seller to a Third Party and does not otherwise pertain to the Company;

 

(xii)           cancel
(unless replaced with a comparable insurance policy) or materially reduce the amount or scope of any insurance policies in effect as of
the Execution Date;

 

(xiii)           relinquish
or abandon any of the Oil & Gas Interests, except (A) as required by Law, Permit or any applicable Contract, or (B) for
the expiration of any Lease in accordance with its terms;

 

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(xiv)           resign
as the operator of any Oil & Gas Assets that are currently operated by the Company;

 

(xv)           except
as required by Law, enter into, negotiate, modify, amend, or extend any CBA or recognize or certify any labor union, works council or
other employee representative body as the bargaining representative of any employees or individual independent contractors who provide
services to or for the benefit of the Company (“Active Workers”);

 

(xvi)           adopt
or establish any Employee Benefit Plan or pay or provide any compensation or benefits to any Active Worker or otherwise incur any liability
with respect to any Active Worker;

 

(xvii)           adopt
any plan of merger, consolidation or reorganization;

 

(xviii)           make
any investment in the Securities of, acquire by merger or consolidation with, merge or consolidate with or purchase substantially all
of the assets of or otherwise acquire any assets or business of, or acquire any Securities in, any Person, in each case other than any
such action solely between or among the Company;

 

(xix)           offer,
issue, deliver, sell, grant, pledge, grant any award relating to, transfer or otherwise encumber or dispose of or subject to any Lien
or limitation on voting rights, (A) any Securities in the Company or (B) any Securities convertible into or exchangeable for,
or any options, warrants, commitments or rights of any kind to acquire, any such units or membership interests, voting rights or other
interests in the Company;

 

(xx)           create,
incur, assume or otherwise voluntarily become liable with respect to any Indebtedness for Borrowed Money, including under the Existing
Credit Agreement, without the prior written consent of Buyer (not to be unreasonably withheld, conditioned or delayed), in each case,
except for Indebtedness for Borrowed Money that will be paid off by Seller, terminated or released at or prior to Closing;

 

(xxi)           make
any loans, advances or capital contributions to, or investments in any other Person, other than routine expense advances to its customers
in the ordinary course of business consistent with past practice;

 

(xxii)           grant
or create any Preferential Purchase Right or Consent with respect to the Oil & Gas Assets;

 

(xxiii)           enter
into any Hedge Contract, except in the ordinary course of business; or

 

(xxiv)           agree,
whether in writing or otherwise, to do any of the foregoing;

 

provided that notwithstanding
anything in this Agreement to the contrary, nothing contained in this Agreement shall (A) give Buyer, directly or indirectly, the
right to control or direct in any manner the operations of the Company prior to the consummation of the Closing; or (B) prohibit
or restrict the Company from entering into joint operating agreements in the ordinary course of business. Buyer acknowledges that the
Company owns undivided interests in non-operated Oil & Gas Assets, and Buyer agrees that the acts or omissions of the other Working
Interest owners (including the Third Party operators) who are not Seller, an Affiliate of Seller or the Company shall not constitute a
breach of the provisions of this Section 9.1(b), and no action required pursuant to a vote of Working Interest owners shall
constitute a breach of the provisions of this Section 9.1(b) so long as the Company voted its interest, in such a manner
that complies with the provisions of this Section 9.1(b). Notwithstanding the foregoing provisions of this Section 9.1(b),
in the event of an emergency, Seller may take (and may cause the Company to take) such action as reasonably necessary and shall notify
Buyer of such action promptly thereafter. Any specific action approved (or deemed approved) by Buyer pursuant to this Section 9.1(b) that
would otherwise constitute a breach of one of Seller’s or the Company’s representations and warranties in Article 6
or Article 7 shall be deemed to be an exclusion from all representations and warranties for which it is relevant.

 

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(c)           Commercially
Reasonable Efforts. Subject to Section 9.9, which shall govern the subject matter thereof and except as otherwise expressly
set forth herein, the Parties shall cooperate and use their respective commercially reasonable efforts to take, or cause to be taken,
all appropriate action, and do, or cause to be done, and assist and cooperate with the other Parties in doing, all things necessary,
proper or advisable (subject to applicable Laws) to consummate and make effective, in the most expeditious manner practicable, the transactions
contemplated hereby. In addition, no Party shall take any actions after the date of this Agreement to intentionally or materially delay
the obtaining of, or result in not obtaining, any consent from any Governmental Authority necessary to be obtained prior to Closing,
including the satisfaction of the conditions set forth in Article 12.

 

(d)           Access
to Information. From the Execution Date until the earlier of (a) the date this Agreement is terminated pursuant to Section 13.1
and (b) the Closing Date, subject to the limitations in Section 9.1(e), Section 9.2, and Section 14.11,
Seller shall grant to Buyer and its authorized representatives reasonable access, during normal business hours and upon reasonable advance
notice, to senior management, the properties and the books and records of the Company to the extent (and only to the extent) relating
to the ownership, operation or transition of the Company’s business to Buyer; provided that (i) such access does not
unreasonably interfere with the normal operations of the Company or of Seller, (ii) such access shall occur in such a manner as
Seller reasonably determines to be appropriate to protect the confidentiality of the transactions contemplated by this Agreement, (iii) all
requests for access shall be directed to Jesse Irvin (at jirvin@bisonog.com) or such other Person as Seller may designate in writing
from time to time (the “Bison Contact”), (iv) except to the extent set forth in Section 4.2, such
access shall not entitle Buyer to conduct any environmental assessment, including any monitoring, testing or sampling or any Phase I
Environmental Site Assessments, and (v) nothing herein shall require Seller or the Company to provide access to, or to disclose
any information to, Buyer or any other Person if such access or disclosure (A) would breach any obligations to any Third Party or
obligation of confidentiality binding on Seller, the Company or the Oil & Gas Assets, provided that Seller shall use
its commercially reasonable efforts to obtain any applicable waivers of confidentiality restrictions, (B) would cause competitive
harm to Seller or the Company if the transactions contemplated by this Agreement are not consummated, (C) would be in violation
of applicable Laws or regulations of any Governmental Authority or the provisions of any Contract or policy to which the Company is a
party, or (D) that would result in the waiver or a potential waiver of attorney-client privilege or attorney work product. Buyer
acknowledges that, pursuant to its right of access to the personnel, the properties and the books and records of the Company (including
in connection with Buyer’s Independent Title Review and Buyer’s Independent Environmental Review), Buyer will become privy
to confidential and other information of Seller and the Company and that such confidential information shall be held confidential by
Buyer and Buyer’s representatives in accordance with the terms of the Confidentiality Agreement. If Closing should occur, the foregoing
confidentiality restriction on Buyer, including the Confidentiality Agreement and the confidentiality restriction in Section 4.2,
shall terminate (except as to information related to any assets other than the assets of the Company, including any assets of Seller
or any of its Affiliates other than the Company). For the avoidance of doubt, neither the Company nor Seller makes any representation
or warranty as to the accuracy of any information (if any) provided pursuant to this Section 9.1(d), and none of Buyer, nor
any of its Affiliates or their respective direct or indirect equityholders or representatives, may rely on the accuracy of any such information,
in each case, other than the express representations and warranties of Seller and the Company set forth in Article 6 and
Article 7 hereof, as qualified by the Schedules thereto. The information provided pursuant to this Section 9.1(d) will
be used solely for the purpose of effecting the transactions contemplated hereby, and will be governed by all of the terms and conditions
of the Confidentiality Agreement.

 

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(e)           Access
Indemnity. Notwithstanding any other provision herein to the contrary, Buyer shall indemnify, defend, hold harmless and forever release
the each of Seller and its Affiliates, and all of their respective direct and indirect equityholders, partners, members, directors, officers,
managers, employees, agents and representatives, from and against any Losses arising out of or in connection with any site visits, access
to or inspections of Seller’s or the Company’s assets, records or properties or any other diligence activity by or on behalf
of Buyer or its Affiliates or their respective officers, employees, agents and representatives (including pursuant to Buyer’s Independent
Title Review or Independent Environmental Review), EVEN IF SUCH LOSSES ARISE OUT OF OR RESULT FROM, SOLELY OR IN PART, THE SOLE, ACTIVE,
PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OR VIOLATION OF LAW OF OR BY ANY OF Seller,
the Company, or their respective Affiliates, or any of it or their respective DIRECT AND INDIRECT equityholders, partners, members, directors,
officers, managers, employees, agents and representatives, EXCEPTING ONLY (A) LIABILITIES ACTUALLY RESULTING ON THE ACCOUNT
OF THE BAD FAITH, GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY of Seller, the Company, or their
respective Affiliates, or any of it or their respective DIRECT AND INDIRECT equityholders, partners, members, directors, officers, managers,
employees, agents and representatives and (B) LIABILITIES THAT WERE EXISTING PRIOR TO SUCH INSPECTIONS OR ARISING OUT OF
OR RELATING TO NONCOMPLIANCE WITH ENVIRONMENTAL LAWS THAT ARE MERELY DISCOVERED (BUT NOT EXACERBATED) BY BUYER OR ANY BUYER’S REPRESENTATIVE
DURING SUCH DUE DILIGENCE INVESTIGATION.

 

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Section 9.2           Communications.

 

(a)           Prior
to the Closing, without the prior written consent of Seller (which consent may be given or withheld in Seller’s sole discretion),
Buyer shall not (and shall not permit any of its Affiliates or its or their respective employees, counsel, accountants, consultants, financing
sources or other representatives to) (i) contact any officer, director, manager, employee, consultant, direct or indirect equityholder,
distributor, supplier, customer, contractor, or joint venture partner of the Company or of Seller (in each case with respect to the Company
or Seller, other than the Persons included in clause (a) of the definition of Knowledge herein) or any Third Party operator
of the Oil & Gas Assets, or other material business relation of the Company (collectively, the “Restricted Contacts”)
in connection with the Transaction or engage in any discussions with any Restricted Contact in respect of the Transaction or (ii) make
any announcement or communication to any Restricted Contact regarding this Agreement or the Transaction.

 

(b)           Notwithstanding
anything to the contrary in Section 9.2(a), from and after the Execution Date, Buyer may contact those individuals set forth
on Schedule 9.2(b) without the prior written consent of Seller for purposes of evaluating potential employment of or otherwise
engaging such individuals for purposes of providing services to the Company after the Closing.

 

Section 9.3           Affirmative
and Negative Covenants of the Buyer. From the Execution Date until the earlier of (a) the date this Agreement is terminated
pursuant to Section 13.1 and (b) the Closing Date, except as otherwise contemplated or permitted by this Agreement,
Buyer shall, and shall cause each of its Subsidiaries to, use commercially reasonable efforts to operate their respective business in
the ordinary course in all material respects and to (i) maintain the books of account and records relating to their oil &
gas assets in the usual, regular and ordinary manner, in accordance with its usual accounting practices and (ii) preserve substantially
intact the present business organization of the Buyer.

 

Section 9.4           Further
Assurances. Upon the request of a Party, at any time on or after the Closing, the Party or Parties shall (and shall cause its Affiliates
to) promptly execute and deliver such further instruments of assignment, transfer, conveyance, endorsement, direction, or authorization
and other documents as the requesting Party may reasonably request in order or to otherwise effectuate the purposes of this Agreement
or the Related Agreements.

 

Section 9.5           Confidentiality;
Publicity. In furtherance of the confidentiality restrictions set forth in Sections 4.2 and 9.1(d), prior to the
Closing (and for an additional twelve (12) month period after Closing as it relates to information related to any assets other than the
assets of the Company, including any assets of Seller or any of its Affiliates other than the Company) and after any termination of this
Agreement, as applicable, Buyer shall hold, and shall cause its Affiliates and its and their respective representatives to hold, in confidence,
all confidential documents and information concerning Seller and the Company furnished to Buyer or its representatives in connection
with this Agreement and the transactions contemplated hereby in the manner specified in the Confidentiality Agreement. After Closing,
Seller shall hold, and shall cause its Affiliates and its and their respective representatives to hold, in confidence, all confidential
documents and information concerning the Company known or held by Seller, Seller’s Affiliates or their representatives, in the
same manner and terms as specified in the confidentiality and non-disclosure obligations of the “Recipient” (as such term
is defined in the Confidentiality Agreement) as set forth in the Confidentiality Agreement, mutatis mutandis as if Buyer were
the party disclosing confidential information thereunder, for a period of twelve (12) months following the Closing. Notwithstanding anything
to the contrary in the Confidentiality Agreement or this Section 9.5, without the prior written consent of the other Parties,
no Party shall issue any press release or make any announcement to the general public pertaining to this Agreement or the transactions
contemplated hereby or otherwise disclose the existence of this Agreement and the transactions contemplated hereby and thereby to any
Third Party, except (a) as may be required by applicable Law or by obligations pursuant to any listing agreement with any national
securities exchange, in which case the Party proposing to issue such press release or make such public announcement or make such disclosure
shall use commercially reasonable efforts to consult in good faith with the other Party before issuing any such press releases or making
any such announcements or disclosures to the general public, (b) in connection with the procurement of any necessary consents, approvals,
payoff letters, and financing in connection with this transaction, and similar documentation and (c) that each Party may disclose
the terms of this Agreement to their respective current and prospective debt and equity investors, accountants, legal counsel and other
representatives as necessary in connection with the ordinary conduct of their respective businesses; provided that such persons
agree to keep the terms of this Agreement strictly confidential. Notwithstanding the foregoing, to the extent applicable, each Party
and its direct and indirect equityholders and their respective Affiliates may disclose to their direct and indirect limited partners
and members such information as is customarily provided to current or prospective limited partners in private equity funds or other similar
financial investment funds; provided further, however, that, with respect to Seller, Seller’s Affiliates or their representatives,
the foregoing obligation of confidence shall not apply to the extent necessary to enforce the Seller’s rights or make any claims
under this Agreement and/or any Related Agreement. Notwithstanding anything contained herein to the contrary, Seller and its Controlled
Affiliates may disclose information that is subject to the confidentiality obligations under this Section 9.5 to actual and
potential debt and equity investors (and their representatives) in connection with ordinary course fundraising activities of Seller or
any of its Controlled Affiliates (subject to such recipients thereof being bound by customary confidentiality obligations with respect
thereto).

 

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Section 9.6           Fees
and Expenses. Each Party shall be liable for and pay all of its own costs and expenses (including attorneys’, accountants’
and investment bankers’ fees and other out-of-pocket expenses) in connection with the negotiations and execution of this Agreement
and the Related Agreements, the performance of such Party’s obligations hereunder and thereunder and the consummation of the transactions
contemplated hereby and thereunder; provided that Buyer shall pay and be fully responsible for (a) all filing fees (if any)
under any Laws applicable to Buyer and (b) all fees, costs and expenses (if any) incurred in respect of the financing by Buyer and
its Affiliates of the transactions contemplated by this Agreement and the Related Agreements; provided, further, that Buyer and
Seller shall be equally responsible for the fees and costs of the Deposit Escrow Account and, if applicable, Defect Escrow Account.

 

Section 9.7           Insurance.
Buyer shall be solely responsible from and after Closing for providing insurance to the Company and its business for events or occurrences
occurring after the Closing. Buyer acknowledges that all insurance arrangements maintained by Seller and its Affiliates (other than the
Company) for the benefit of the Company, if any, will be terminated as of the Closing and no further business interruption, property or
Losses shall be covered under any such insurance arrangements; provided, that Seller shall use commercially reasonable efforts
to assign, transfer and set over to Buyer or subrogate Buyer to all of Seller’s right, title and interest (if any) in any insurance
claims with respect to matters arising from and after the Effective Time.

 

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Section 9.8        Affiliate
Arrangements. At or prior to the Closing, but after the payment of any amounts owing pursuant thereto as part of the Transaction
Expenses, Seller shall take (or cause to be taken) all actions necessary to (a) terminate all Affiliate Arrangements (other than
those set forth on Schedule 9.8) in a manner such that neither the Company nor any of its controlled Affiliates has any liability
or obligation with respect thereto at or following the Closing and (b) have the parties to such Affiliate Arrangements (other than
those set forth on Schedule 9.8) release and waive any and all claims that any of them may have under such arrangements as
of the Termination Date. Such actions shall be effected pursuant to a Termination Agreement in the form attached hereto as Exhibit G.

 

Section 9.9        Regulatory
Approvals.

 

(a)       Each
Party and each Party’s respective Affiliates shall, prepare and submit, or cause to be prepared and submitted, to the applicable
Governmental Authority, as soon as is practical following the Execution Date (but no later than ten (10) Business Days following
the Execution Date), all necessary filings in connection with the Transaction that may be required for obtaining any Governmental Approvals
required under applicable Laws prior to the Closing Date. Each Party shall, and shall cause its respective Affiliates to, submit the required
filings as soon as practicable, but, with respect to any filings required under the HSR Act, in no event later than ten (10) Business
Days after the Execution Date of this Agreement. The Parties shall request or cause to be requested expedited treatment of any such filings
(including early termination of any applicable waiting periods under the HSR Act), promptly make any appropriate or necessary subsequent
or supplemental filings, and cooperate with one another in the preparation of such filings in such manner as is reasonably necessary and
appropriate.

 

(b)       No
Party shall take, and shall cause its respective Affiliates not to take, any action that could reasonably be expected to adversely affect
or materially delay or impair the approval of any Governmental Authority of any of the aforementioned filings. Notwithstanding any other
provision of this Agreement, Buyer shall, and shall cause its Affiliates to, promptly take, in order to consummate the Transaction and
the Related Agreements, any and all actions necessary to secure the expiration or termination of any applicable waiting period in connection
with a Governmental Approval (including in connection with the expiration or termination of any applicable waiting periods under the
HSR Act), including: (i) resolving any objections asserted with respect to the transactions contemplated by this Agreement raised
by any Governmental Authority; (ii) preventing the entry of any orders of the applicable Governmental Authority having jurisdiction,
and to have vacated, lifted, reversed or overturned any order, that would prevent, prohibit, restrict, or delay the consummation of the
transactions contemplated by this Agreement; (iii) entering into any settlement, undertaking, consent decree, stipulation or agreement
with any Governmental Authority in connection with the transactions contemplated by this Agreement; (iv) litigating, challenging
or taking any other action with respect to any Proceeding in connection with the transactions contemplated by this Agreement; (v) divesting
or otherwise holding separate or taking any other action (or otherwise agreeing to do any of the foregoing) with respect to the businesses,
assets, or properties of Buyer, its respective Affiliates or the Company; and (vi) terminating, modifying or extending any existing
relationships or contractual rights and obligations of Buyer, its Affiliates or the Company.

 

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(c)       Subject
to applicable confidentiality restrictions or restrictions required by applicable Laws, each Party will notify the other Party promptly
upon the receipt by such Party or its Affiliates of (i) any material comments or questions from any officials of any Governmental
Authority in connection with any filings made pursuant to this Section 9.9 or the transactions contemplated by this Agreement
and (ii) any request by any officials of any Governmental Authority for amendments or supplements to any filings made pursuant to
any applicable Laws of any Governmental Authority or answers to any material questions, or the production of any documents, relating
to an investigation of the transactions contemplated by this Agreement by any Governmental Authority. Whenever any event occurs that
is required to be set forth in an amendment or supplement to any filing made pursuant to this Section 9.9, each Party shall
promptly inform the other Party of such occurrence and cooperate in filing promptly with the applicable Governmental Authority such amendment
or supplement. Without limiting the generality of the foregoing, each Party shall provide to the other Party (or its advisors), upon
reasonable request and subject to appropriate confidentiality protections, copies of all material correspondence between such Party and
any Governmental Authority relating to the transactions contemplated by this Agreement. The Parties may, as they deem advisable and necessary,
designate any competitively sensitive materials provided to the others under this Section 9.9 as “outside counsel only.”
Such materials and the information contained therein shall be given only to outside counsel of the recipient and shall not be disclosed
by such outside counsel to employees, officers, or directors of the recipient without the advance written consent of the Party providing
such materials. In addition, to the extent reasonably practicable and subject to appropriate confidentiality protections, all material
discussions, telephone calls, and meetings with a Governmental Authority regarding the transactions contemplated by this Agreement shall
include representatives of both Buyer and Seller. Subject to applicable Laws and to the extent reasonable practicable, the Parties shall
consult and cooperate with each other in connection with any analyses, appearances, presentations, memoranda, briefs, arguments, and
proposals made or submitted to any Governmental Authority regarding the transactions contemplated by this Agreement by or on behalf of
any Party.

 

Section 9.10      Seismic
Licenses. Buyer acknowledges that certain seismic data and information that is currently licensed by the Company from Third Parties
(the “Licensed Seismic Data”) may not be transferable to Buyer (directly or indirectly, including upon a change in
control of the Company) at Closing. At Buyer’s request, between the Execution Date and Closing, Seller shall (and shall cause Company
to) use commercially reasonable efforts (in each case without any obligation to incur out of pocket costs or assume any obligation) to
cooperate with any reasonable requests from Buyer to assist in obtaining new licenses (or the transfer of any existing licenses or licensed
data) pertaining to such Licensed Seismic Data; provided that Buyer shall be responsible for the payment of any and all transfer
or other fees, costs, and expenses associated with obtaining any such license (or the transfer of any existing license or licensed data)
from the applicable Third Party.

 

Section 9.11      Takeover
Laws. Buyer will not take any action that would cause this Agreement or the transactions contemplated hereby to be subject to requirements
imposed by any Takeover Laws under applicable Law, and each of them will take all reasonable steps within its control to exempt (or ensure
the continued exemption of) the transactions from the Takeover Laws of any state that purport to apply to this Agreement or the transactions
contemplated hereby.

 

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Section 9.12      NYSE
Listing. Buyer shall, in accordance with the requirements of the NYSE, use its reasonable best efforts to file with the NYSE a supplemental
listing application covering the shares of Buyer Common Stock to be issued to Seller (or its designees) pursuant to this Agreement, subject
to official notice of issuance, prior to the Closing Date.

 

Section 9.13      Financial
Information. From and after the date of this Agreement in the event Buyer is required under Regulation S-X of the Securities Act
to separately include pro forma financial statements associated with the Company and its assets in documents filed with the SEC by Buyer
pursuant to the Securities Act or the Exchange Act (it being understood that in no event shall such period extend beyond the one (1) year
anniversary of the Closing Date) (the “Records Period”), Company agrees to make available to Buyer and its Affiliates
and their agents and representatives any and all books, records, information and documents to the extent that such are attributable to
the Company and in the Company’s or its Affiliates’ possession or control and to which the Company’s and its Affiliates’
personnel have reasonable access, in each case as reasonably required by Buyer, its Affiliates and their agents and representatives in
order to prepare pro forma financial statements in connection with Buyer’s filings, if any, that are required by the SEC, under
securities laws applicable to Buyer, or financial statements meeting the requirements of Regulation S-X under the Securities Act, provided
that such activities do not unreasonably interfere with the affairs of the Company and its Affiliates and that Buyer shall be solely
responsible for any costs or expenses associated therewith, including, for avoidance of doubt, any such costs and expenses associated
with the storage and maintenance of records for the foregoing purposes. During the Records Period, the Company shall use its reasonable
best efforts to cause its accountants, counsel, agents and other third parties to cooperate with Buyer and its representatives in connection
with the provision of information necessary for the preparation by Buyer of any such pro forma financial statements that are required
to be included in any filing by Buyer or its affiliates with the SEC, provided that Buyer shall be solely responsible for any costs or
expenses associated therewith.

 

Section 9.14      Seller
Names. Buyer acknowledges and agrees that Seller and its Affiliates have the right and shall
continue to have the right after the Closing to use the “Bison” and “Bison Oil & Gas” names and any
translations, transliterations, adaptations, derivations, acronyms, variations, abbreviations, insignias, designations, or combinations
thereof (the “Seller Names”) in entity names and as trademarks. Buyer shall, and shall cause the Company to, within
fifteen (15) days after the Closing Date, (a) amend the Governing Documents of the Company to change the Company’s name to
a name that does not include a Seller Name and (b) cease using and not thereafter use (i) the Seller Names in entity names
or as trademarks or (ii) any name or trademark likely to cause confusion with or dilute any Seller Name. In furtherance of and without
limiting the foregoing, no later than thirty (30) days after the Closing, Buyer shall, and shall cause the Company to, remove, strike
over or otherwise obliterate all Seller Names from all assets and other materials owned by Buyer and the Company, including any sales
and product literature, vehicles, business cards, schedules, stationery, packaging materials, displays, signage, advertising, marketing,
promotional and related materials, training materials, audio and visual materials, manuals, forms, websites, and social media pages and
accounts, and shall cease and discontinue any other use of the Seller Names in the operation of their businesses. Notwithstanding the
foregoing, nothing in this Section 9.14 shall restrict Buyer from continuing operations pursuant to any Contract in effect
at the time of Closing.

 

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Section 9.15      Company
Hedges. Prior to Closing, Buyer and Seller shall each use commercially reasonable efforts to take all actions necessary to novate
(or cause to be novated) the Hedge Contracts from a Company Hedge Counterparty to a transferee designated by Buyer pursuant to a Novation
Agreement, with any such novation to be effective at Closing (including, with respect to Buyer, entering into an ISDA Master Agreement
with each applicable transferee, if necessary).  Buyer (a) shall bear sole economic responsibility for any and all Hedge Transfer
Fees and (b) with respect to any Company Hedge that cannot be novated to Buyer at Closing, Buyer shall bear sole economic responsibility
for any Company Hedge Liability, breakage and/or unwind charges required by the Company Hedge Counterparty to close-out the Hedge Contracts
at Closing.  For the avoidance of doubt, changes in the economic terms of the Company Hedges required by a Company Hedge Counterparty
or the transferee prior to or in connection with novation are the responsibility of Buyer.  Notwithstanding anything to the contrary
in this Agreement, there shall be no adjustment made to the Purchase Price for the settlement, unwind and/or termination of any Company
Hedges.

 

Article
10

INDEMNIFICATION; LIMITATIONS

 

Section 10.1      Indemnification.
The representations and warranties set forth in Article 6, Article 7 and Article 8 of this Agreement
and the covenants made by each of the Parties shall survive only until the Applicable Limitation Date (provided, that (a) the
Seller Fundamental Representations and Warranties and the Buyer Fundamental Representations and Warranties shall survive indefinitely,
(b) the Applicable Limitation Date for the representations and warranties set forth in Section 7.13 and for Seller Taxes
shall be thirty (30) days after the expiration of the applicable statute of limitation and (c) the Applicable Limitation Date for
the representations and warranties set forth in Section 7.34 shall be the date that is eighteen (18) months after the Execution
Date) and no Person shall be entitled to recover for any Loss pursuant to Section 10.2(a) or Section 10.2(b) unless
written notice of a claim thereof is delivered to Seller (in the case of a claim for which indemnification is available pursuant to Section 10.2(a))
or Buyer (in the case of a claim for which indemnification is available pursuant to Section 10.2(b)), as the case may be,
prior to the Applicable Limitation Date. For purposes of this Agreement, “Applicable Limitation Date” means, the date that
is twelve (12) months after the Closing Date; provided that any claim in respect of a breach or non-fulfillment of a covenant
or agreement of a Party that contemplates the compliance and performance thereof after the Closing Date shall survive until fully performed.
The indemnities in Section 10.2 shall terminate as of the termination date noted in this Section 10.1 for the
applicable representation, warranty, covenant, or agreement that is subject to indemnification thereunder, except in each case as to
matters for which a specific written claim for indemnity has been delivered to the applicable Indemnitor on or before such termination
date. Notwithstanding the foregoing, any claim for a misrepresentation, breach or non-fulfillment of any representation, warranty, covenant
or agreement in respect of which indemnity may be sought under Section 10.2, and the indemnity with respect to such claim,
shall survive the time at which it would otherwise terminate pursuant to this Section 10.1 if notice of the specific claim
for misrepresentation, breach or non-fulfillment thereof giving rise to such right of indemnity shall have been given to the Party against
whom such indemnity may be sought prior to such time.

 

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Section 10.2      General
Indemnification.

 

(a)       Subject
to the other terms of this Section 10.2, Section 10.3, Section 10.9, and the other limitations set
forth herein, from and after the Closing, Seller shall indemnify the Buyer Indemnified Parties, and save and hold each of them harmless
from and against and pay on behalf of or reimburse such Buyer Indemnified Parties for any and all Losses which any such Buyer Indemnified
Party may suffer or become subject to as a result of, arising from or in connection with:

 

(i)       any
misrepresentation or breach of any representation or warranty of the Company set forth in Article 7 or of Seller set forth
in Article 6 of this Agreement or any representation or warranty made in the certificate delivered by the Company pursuant
to Section 2.10(a)(i);

 

(ii)      any
breach or non-fulfillment of any covenant of the Company under this Agreement or a breach or nonfulfillment by Seller of the covenants
or agreements of Seller under this Agreement;

 

(iii)     Seller
Taxes; and

 

(iv)    on
a dollar-for-dollar basis, to the extent not paid by Seller pursuant to Section 2.7, any Leakage for which Buyer was entitled
to make a deduction to the Adjustment Amount pursuant to Section 2.3(a)(ii)(B).

 

even
if such LOSSES are caused in whole or in part by the negligence (whether sole, joint or concurrent), strict liability or other legal fault
of any APPLICABLE BUYER INDEMNIFIED PARTIES, invitee, or third PARTY, and whether or not caused by a pre-existing condition,
but excluding the bad faith, gross negligence or willful misconduct of any APPLICABLE BUYER INDEMNIFIED
PARTIES.

 

(b)       From
and after Closing, Buyer shall indemnify the Seller Indemnified Parties and save and hold each of them harmless from and against and pay
on behalf of or reimburse such Seller Indemnified Parties for any Losses which any such Seller Indemnified Party may suffer or become
subject to as a result of, arising from or in connection with:

 

(i)       any
misrepresentation or breach of any representation or warranty set forth in Article 8 of this Agreement or any representation
or warranty made in the certificate delivered by Buyer pursuant to Section 2.10(b)(i); and

 

(ii)      any
breach or non-fulfillment of any covenant or agreement of Buyer under this Agreement or any Related Agreement.

 

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even
if such LOSSES are caused in whole or in part by the negligence (whether sole, joint or concurrent), strict liability or other legal fault
of any APPLICABLE Seller Indemnified PARTIES, invitee or third PARTY, and whether or not caused by a pre-existing condition,
but excluding the bad faith, gross negligence or willful misconduct of any APPLICABLE Seller Indemnified
PARTIES.

 

Section 10.3      Limitations
on Indemnification.

 

(a)       Claim
Threshold. Subject to Section 10.3(d), no Indemnified Parties shall be entitled to indemnity with respect to, and shall
not be entitled to assert, any claim under, or institute any Proceeding for Losses indemnifiable pursuant to, Section 10.2(a)(i) or
Section 10.2(b)(i), as applicable, with respect to a misrepresentation or breach unless and until the aggregate amount of
Losses with respect to such misrepresentation or breach exceeds one hundred seventy-five thousand dollars ($175,000) (the “Claim
Threshold”).

 

(b)       Deductible.
Subject to Section 10.3(a) and Section 10.3(d), no Indemnified Parties shall be entitled to indemnity with
respect to, and shall not be entitled to assert any claim under, or institute any Proceeding, for Losses indemnifiable pursuant to Section 10.2(a)(i) or
Section 10.2(b)(i), as applicable, unless and until the aggregate amount of all Losses indemnifiable pursuant to Section 10.2(a)(i) or
Section 10.2(b)(i), as applicable, exceeds three million six hundred thousand dollars ($3,600,000) (the “Deductible”)
and then the indemnifying Party (an “Indemnitor”) shall be liable to the Indemnified Parties only for the amount by
which the sum of all such Losses exceeds the Deductible.

 

(c)       Cap
Amounts.

 

(i)       Subject
to Section 10.3(d), the maximum aggregate amount of Losses or other obligations for which an Indemnitor shall be liable pursuant
to Section 10.2(a)(i) or Section 10.2(b)(i), as applicable, shall be thirty-six million dollars ($36,000,000)
(the “Cap”).

 

(ii)      Subject
to Section 10.3(c)(i), the maximum aggregate amount of Losses or other obligations for which an Indemnitor shall be liable
pursuant to Section 10.2(a) or Section 10.2(b), as applicable, shall be equal to the Purchase Price.

 

(d)       The
limitations contained in Section 10.3(a), Section 10.3(b) and Section 10.3(c)(i) shall
not apply to claims for misrepresentations or breaches of Seller Fundamental Representations and Warranties, Seller’s representations
and warranties in Section 7.13 or Section 7.34 or Buyer Fundamental Representations and Warranties.

 

(e)       Any
claim for indemnity under this Article 10 by any Buyer Indemnified Parties or Seller Indemnified Parties that are not a Party
must be brought and administered by the applicable Party to this Agreement that is related to such Person. No Person other than Seller
and Buyer shall have any rights against Seller or Buyer under the terms of this Article 10 except as may be exercised on
its behalf by Buyer or Seller, as applicable, pursuant to this Section 10.3(e). Seller and Buyer may elect to exercise or
not exercise indemnification rights under this Article 10 on behalf of the other Buyer Indemnified Parties or Seller Indemnified
Parties (as applicable) who are related to it in its sole discretion and shall have no liability to any such other Buyer Indemnified
Parties or Seller Indemnified Parties (as applicable) for any action or inaction under this Section 10.3(e).

 

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(f)       The
amount of any Losses for which an Indemnitee is entitled to indemnity under this Article 10 shall be reduced by the amount
of insurance proceeds realized by the Indemnified Party or its Affiliates with respect to such Losses (net of any collection costs, and
excluding the proceeds of any insurance policy issued or underwritten by the Indemnified Party or its Affiliates); provided, however,
that no Party shall be required to seek recovery under any policy of insurance as a condition to indemnification hereunder.

 

Section 10.4      Materiality.
For purposes of the indemnification obligations under this Article 10, including for purposes of both determining whether there
has been an inaccuracy, misrepresentation or breach and for determining the amount of Losses resulting from or arising therefrom, the
representations and warranties set forth in Article 6, Article 7 and Article 8 of this Agreement
(other than Section 7.12, Section 8.14(c) and the term “Material Contract”, “Material
Customer” and “Material Vendor”) that are qualified as to “material,” “materiality,” “material
respects,” “Company Material Adverse Effect” or words of similar import or effect shall be deemed to have been made
without any such qualification.

 

Section 10.5      Third
Party Claims.

 

(a)       Any
Party making a claim for indemnification under Section 10.2 (an “Indemnitee”) shall notify the Indemnitor
of the claim in writing after receiving written notice of any Proceeding or other claim against it (if by a third party), describing the
claim, the amount thereof (if known and quantifiable), and the basis thereof; provided that the failure to so notify an Indemnitor
shall not relieve an Indemnitor of its obligations hereunder, except to the extent that an Indemnitor is actually prejudiced thereby.
The Indemnitor shall then have a period of thirty (30) calendar days after the receipt of such claim (the “Indemnity Response
Period”) to notify the Indemnified Party whether the Indemnitor disputes its liability to the Indemnified Party with respect
to such claim. If the Indemnitor notifies the Indemnified Party that it does not dispute the claim, the corresponding Loss will be conclusively
deemed to be a liability of the Indemnitor under Section 10.2 (subject to the limitations of Section 10.2) and
the Indemnitor shall pay the amount of such Loss to the Indemnified Party on demand (or, in the event of a Third Party Claim, upon final
judgment or settlement with respect to such claim in accordance with Section 10.5(b) below). If the Indemnitor notifies
the Indemnified Party within the Indemnity Response Period that the Indemnitor disputes its liability with respect to such claim or fails
to notify the Indemnified Party within the Indemnity Response Period whether the Indemnitor disputes the claim described in such claim
notice, the Indemnitor and the Indemnified Party will proceed in good faith to negotiate a resolution of such dispute, and if not resolved
through negotiations within a period of fifteen (15) calendar days from the date of such notice or such longer period as may be agreed
to in writing, either of the Indemnitor or the Indemnified Party shall be entitled to initiate any Proceeding to declare or enforce its
obligations or rights with respect to such claim as is permitted hereunder.

 

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(b)       In
the event a claim hereunder shall involve a Proceeding initiated by a third party (a “Third Party Claim”), any alleged
Indemnitor shall be entitled to participate in the defense of such Proceeding or other claim giving rise to an Indemnitee’s claim
for indemnification at such Indemnitor’s expense, and at its option (subject to the limitations set forth below) shall be entitled
to assume the control of the defense thereof by appointing counsel reasonably acceptable to the Indemnitee to be the lead counsel in
connection with such defense; provided that (i) the Indemnitee shall be entitled to participate in (but not control) the
defense of such claim and to employ counsel of its choice for such purpose; provided that the fees and expenses of such separate
counsel shall be borne entirely by the Indemnitee; (ii) Indemnitor shall not be entitled to assume control of such defense if (A) the
claim for indemnification relates to or arises in connection with any criminal proceeding, (B) the claim involves a material customer
or material vendor of the Company, (C) the claim seeks an injunction or other equitable relief against an Indemnitee, (D) Losses
resulting from such claim could reasonably be expected to exceed the remaining amount of indemnification available to the Indemnified
Party under this Agreement or (E) in the judgment of the Indemnitee’s counsel, a conflict of interest between the Indemnitee
and the Indemnitor exists as a result of such claim; and (iii) if an Indemnitor shall control the defense of any such claim, such
Indemnitor shall obtain the prior written consent of the Indemnitee (which shall not be unreasonably withheld, conditioned or delayed)
before entering into any settlement of a claim; provided, however, subject to the limitations set forth in Section 10.2,
an Indemnitor may settle or consent to the entry of judgment in respect of such claim without the consent of the Indemnitee, if such
settlement or judgment is (w) solely for money damages which are fully and completely indemnified by the Indemnitor, (x) includes
a full and unconditional release of the Indemnitee and its Affiliates from any further liability in respect of such claim and (y) does
not contain an admission of wrongdoing on the part of the Indemnitee or any of its Affiliates. If the Indemnitor makes any payments with
respect to any claim pursuant to Section 10.2, the Indemnitor shall be subrogated, to the extent of such payment, to all
rights and remedies of the Indemnitee to any insurance benefits or other claims of the Indemnitee with respect to such claim. Any member
of the Buyer Indemnified Parties who is indemnified pursuant to Article 10, shall assign or otherwise cooperate with Seller
in the pursuit of any claims against, and any efforts to recover amounts from, such other Person for any such Losses for which any member
of the Buyer Indemnified Parties has been paid. Any such Buyer Indemnified Parties shall remit to Seller, within five (5) Business
Days after receipt, any insurance proceeds or other payment that is received by any such Buyer Indemnified Party and which relates to
Losses for which (but only to the extent) such member of the Buyer Indemnified Parties has been previously compensated hereunder (minus
the reasonable out-of-pocket costs incurred in obtaining such recovery).

 

Section 10.6      Exclusive
Remedy.

 

(a)       Except
with respect to Fraud, the sole and exclusive remedy for any and all claims against Seller arising under, out of, related to or in connection
with this Agreement and any Related Agreements shall be the remedies provided in Section 2.7, the rights and remedies set
forth in Article 3 and Article 4, the rights of indemnification set forth in Section 10.2, and the
right to seek an injunction, specific performance or other equitable relief pursuant to Section 13.3, and no Person will
have any other entitlement, remedy or recourse, whether in contract, tort or otherwise against Seller, it being agreed that all of such
other remedies, entitlements and recourse are expressly waived and released by the Parties to the fullest extent permitted by Law. Except
for the remedies provided in Section 2.7 the rights of indemnification set forth in Section 10.2 and the right
to seek an injunction, specific performance or other equitable relief pursuant to Section 13.3, upon Closing each Party releases,
remises, and forever discharges the other and its Affiliates and its and their respective former, current and future partners, members,
shareholders, owners, officers, directors, managers, employees, agents and representatives from any and all suits, legal or administrative
proceedings, claims, demands, damages, Losses, costs, liabilities, interest, or causes of action whatsoever, in law or in equity, known
or unknown, which such Party might now or subsequently may have, based on, relating to, or arising out of this Agreement, any Related
Agreement or the ownership, use, or operation of the Oil & Gas Assets, or the condition, quality, status, or nature of the Oil &
Gas Assets, INCLUDING RIGHTS TO CONTRIBUTION UNDER THE COMPREHENSIVE ENVIRONMENTAL RESPONSE, COMPENSATION AND LIABILITY ACT OF
1980, AS AMENDED, THE OIL POLLUTION ACT OF 1990, AS AMENDED, BREACHES OF STATUTORY AND IMPLIED WARRANTIES, NUISANCE OR OTHER TORT ACTIONS,
RIGHTS TO PUNITIVE DAMAGES, COMMON LAW RIGHTS OF CONTRIBUTION, ANY RIGHTS UNDER INSURANCE POLICIES ISSUED OR UNDERWRITTEN BY THE OTHER
PARTY OR ANY OF ITS AFFILIATES, EVEN IF CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE (WHETHER SOLE, JOINT, OR CONCURRENT), STRICT
LIABILITY, OR OTHER LEGAL FAULT OF ANY RELEASED PERSON, INVITEE, OR THIRD PARTY, AND WHETHER OR NOT CAUSED BY A PRE-EXISTING CONDITION.

 

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(b)       The
Buyer shall not be entitled to (i) a rescission of this Agreement or any Related Agreement for any reason or (ii) any further
indemnification rights or claims of any nature whatsoever (except for claims of Fraud), in each case, all of which are hereby expressly
waived by the Buyer to the fullest extent permitted under Law (except to the extent otherwise expressly set forth herein or therein).

 

Section 10.7      Indemnification
Payments.

 

(a)       With
respect to any claim for indemnification of the Buyer Indemnified Parties asserted by Buyer pursuant to Section 10.2, upon
the final resolution or determination of such claim, such claim shall (i) first be paid from amounts held in the Deposit Escrow
Account to the extent adequate funds remain in the Deposit Escrow Account by delivery of joint written instructions to the Escrow Agent
by Seller and Buyer to release the amount of such funds as would satisfy such finally resolved or determined indemnification claim to
Buyer from the Deposit Escrow Account and (ii) to the extent that adequate funds are not available in the Deposit Escrow Account
to cover the full amount of any such indemnification claim, be satisfied by a wire transfer of immediately available funds from Seller
to an account designated in writing by the applicable Buyer Indemnified Party, in each case, within fifteen (15) calendar days after
the resolution or determination thereof that is binding on the Indemnitor. With respect to any claim for indemnification of the Seller
Indemnified Parties asserted by Seller pursuant to Section 10.2, upon the final resolution or determination of such claim,
such claim shall be satisfied by a wire transfer of immediately available funds from Buyer (or to the extent Company has such funds,
at the Buyer’s election, the Company) to an account designated in writing by the applicable Seller Indemnified Party within fifteen
(15) calendar days after the resolution or determination thereof that is binding on the Indemnitor.

 

(b)       Seller
acknowledges and agrees that the Buyer Indemnified Parties’ rights to indemnification for the representations, warranties, covenants
and agreements of the Company and Seller set forth herein are part of the basis of the bargain contemplated by this Agreement; and the
Buyer Indemnified Parties’ rights to indemnification shall not be affected or waived by virtue of (and, subject to Section 10.6(b))
Buyer shall be deemed to have relied upon the representations, warranties, covenants and agreements set forth herein notwithstanding
any knowledge (conscious, deemed or otherwise) on the part of any Buyer Indemnified Party of any untruth or misrepresentation of any
such representation or warranty or breach or failure to perform of any covenant or agreement, of the Company or Seller set forth in this
Agreement, regardless of whether such knowledge was obtained through a Buyer Indemnified Parties’ own investigation (including
through its representatives) or through disclosure by the Company or Seller or another Person, and regardless of whether such knowledge
was obtained before or after the execution and delivery of this Agreement.

 

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(c)       All
indemnification payments made under this Agreement shall be treated by the Parties as an adjustment to the Final Purchase Price for tax
purposes, unless otherwise required by Law.

 

Section 10.8      Release.

 

(a)       Effective
as of immediately prior to the Closing, Seller hereby fully and unconditionally releases, acquits and forever discharges the Company from
any and all manner of actions, causes of actions, claims obligations, demands, damages, costs, expenses, compensation or other relief,
whether known or unknown, whether in Law or equity, of any kind, Seller now has or has ever had against the Company, arising out of or
relating to Seller’s ownership of the Target Interests. The foregoing notwithstanding, the release and discharge provided for herein
shall not release the Company of its obligations or liabilities, if any, pursuant to this Agreement or the Related Agreements.

 

(b)       Effective
as of immediately prior to the Closing, the Company, for itself and on behalf its equityholders, successors and assigns, hereby fully
and unconditionally releases, acquits and forever discharges (i) Seller and (ii) all directors, managers, officers and agents
of such Company holding such position at any time prior to the Closing from any and all manner of actions, causes of actions, claims,
obligations, demands, damages, costs, expenses, compensation or other relief, whether known or unknown, whether in law or in equity,
of any kind, which such Company now has or has ever had against such Persons, arising out of or relating to (A) in respect of Seller,
Seller’s ownership of the Target Interests and (B) in respect of such directors, managers, officers and agents, for acts and
omissions on behalf of the Company or the relationship with the Company, in each case, other than with respect to their respective obligations
and liabilities, if any, under this Agreement or the Related Agreements or for claims of Fraud.

 

Section 10.9      Holdback.

 

(a)       From
and after Closing, the Deposit shall remain in the Deposit Escrow Account to support Seller’s performance of its obligations pursuant
to Section 2.7 (other than any such obligations with respect to any adjustment to the Purchase Price pursuant to Section 2.3(a)(ii)(A),
which shall be addressed only using amounts in the Defect Escrow Account as expressly provided in Article 3 and Article 4)
and Section 10.2(a) until fully distributed as provided in this Section 10.9. On the first Business Day
after the expiration of the Holdback Period, subject to the remainder of this Section 10.9, Buyer and Seller shall jointly
instruct the Escrow Agent to release to Seller any amount then-remaining in the Deposit Escrow Account except for an amount equal to
the aggregate amount of all outstanding claims for indemnification by Buyer pursuant to Section 10.2 for which Buyer has,
in good faith, provided notice to Seller prior to the expiration of the Holdback Period and that have not been previously satisfied in
full, which amounts shall remain part of the Deposit Escrow Account until final resolution of such outstanding indemnity claims (the
 “Disputed Claims”). Upon final resolution or determination of all Disputed Claims by the Parties, as applicable, Buyer
and Seller shall deliver to the Escrow Agent joint written instructions to disburse to Buyer from the Deposit Escrow Account an amount
equal to the amount so finally determined to be owed to Buyer (if any), and all other amounts remaining in the Deposit Escrow Account
in respect of such Disputed Claim shall be disbursed to Seller. If Buyer and Seller fail to deliver a joint written instruction to the
Escrow Agent in accordance with the foregoing sentence within three (3) Business Days following the final resolution or determination
of the applicable Disputed Claim, then the Escrow Agent shall, upon delivery by Buyer or Seller to the Escrow Agent of a written final,
non-appealable court order from a court of competent jurisdiction relating to such Disputed Claim, disburse an amount from the Deposit
Escrow Account in respect of such Disputed Claim as provided in the immediately preceding sentence.

 

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(b)       If,
upon the final resolution or determination of any such indemnity claim during the Holdback Period, Buyer and Seller fail to deliver a
joint written instruction to the Escrow Agent in accordance with Section 10.7(a), then the Escrow Agent shall, upon delivery
by Buyer or Seller to the Escrow Agent of a written final, non-appealable court order from a court of competent jurisdiction, disburse
to Buyer a portion of the Deposit equal to the amounts set forth in such court order.

 

Article
11

TAX MATTERS

 

Section 11.1      Proration
of Taxes.

 

(a)       Solely
for purposes of determining the amount of Taxes that are Working Capital Liabilities and the amount of Seller Taxes:

 

(i)       Seller
shall be allocated all Asset Taxes for any Pre-Effective Time Tax Period, and Buyer shall be allocated all Asset Taxes for any Tax
period other than a Pre-Effective Time Tax Period (including the portion of any Straddle Period beginning at the Effective Time). For
purposes of determining the Tax allocations described in the preceding sentence, (A) Asset Taxes that are attributable to severance
or production (other than such Asset Taxes described in clause (C)) shall be allocated to the period in which the severance or
production giving rise to such Asset Taxes occurred, (B) Asset Taxes that are based upon or related to sales or receipts or imposed
on a transactional basis (other than such Asset Taxes described in clause (A) or (C)) shall be allocated to the period
in which the transaction giving rise to such Asset Taxes occurred, and (C) Asset Taxes that are ad valorem, property or other Asset
Taxes imposed on a periodic basis pertaining to a Straddle Period shall be allocated between the Pre-Effective Time Tax Period and the
portion of such Straddle Period beginning at the Effective Time by prorating each such Asset Tax based on the number of days in the applicable
Straddle Period that occur in the Pre-Effective Time Tax Period, on the one hand, and the number of days in such Straddle Period that
occur at and after the Effective Time, on the other hand.

 

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(ii)      Seller
shall be allocated all Taxes (other than Asset Taxes) imposed on the Company for any Pre-Effective Time Tax Period, and Buyer shall be
allocated all Taxes (other than Asset Taxes) of the Company for any Tax period other than a Pre-Effective Time Tax Period (including
the portion of any Straddle Period beginning at the Effective Time). For purposes of determining the Tax allocations described in the
preceding sentence, any Taxes (other than Asset Taxes) imposed on the Company shall be allocated using a “closing of the books”
methodology as of the Effective Time.

 

(b)       To
the extent the actual amount of a Tax that is a Working Capital Liability is not known at the time an adjustment is to be made with respect
to Purchase Price pursuant to Section 2.3 and Section 2.7, the Parties shall utilize the most recent information
available in estimating the amount of such Tax for purposes of such adjustment. To the extent the actual amount of such Tax is ultimately
determined to be different than the amount that was taken into account as a Working Capital Liability in the Final Purchase Price, timely
payments will be made from one Party to the other to the extent necessary to cause each Party to bear the amount of such Tax that is
allocable to such Party under this Section 11.1, provided that any Tax treated as a Working Capital Liability for purposes
of determining the Final Purchase Price shall be deemed to be borne by Seller for purposes of this Section 11.1(b).

 

Section 11.2      Tax
Returns.

 

(a)       Seller
shall, or shall cause the Company to, (i) prepare and timely file, or cause to be prepared and timely filed, all Tax Returns required
to be filed by the Company or otherwise with respect to Asset Taxes that are required to be filed on or before the Closing Date and (ii) timely
pay or cause to be paid all Taxes due with respect to such Tax Returns. Any such Tax Return prepared and filed or caused to be prepared
and filed shall be prepared in accordance with past practice of the Seller or the Company (to the extent permitted by applicable Law).

 

(b)       Buyer
shall, or shall cause the Company to, (i) prepare and timely file, or cause to be prepared and timely filed, all Tax Returns required
to be filed by the Company or otherwise with respect to Asset Taxes for any Pre-Effective Time Tax Period that are required to be filed
after the Closing Date, and (ii) timely pay or cause to be paid all Taxes due with respect to such Tax Returns; provided that
Seller shall pay to Buyer an amount equal to the Taxes due with respect to such Tax Return that are attributable to a Pre-Effective Time
Tax Period (other than any such Taxes that are Working Capital Liabilities) within five (5) days of receiving a written request from
Buyer for the reimbursement of such Taxes, including a calculation thereof. Each such Tax Return described in this Section 11.2(b) shall
be prepared in accordance with past practice of the Seller or the Company (to the extent permitted by applicable Law). Buyer shall provide
Seller with a copy of each such Tax Return described in this Section 11.2(b) at least ten (10) days prior to the
due date for the filing of such Tax Return (or within a commercially reasonable period after the end of the relevant Tax period, if such
Tax Return is required to be filed less than ten (10) days after the close of such Tax period), and Buyer shall incorporate all reasonable
comments of Seller provided to Buyer in advance of the due date for the filing of such Tax Return.

 

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Section 11.3      Transfer
Taxes. Buyer shall be responsible for the timely payment of, and Buyer and Seller shall equally bear, all sales (including bulk sales),
use, documentary, stamp, gross receipts, registration, transfer, conveyance, excise, recording, license, stock transfer stamps and other
similar Taxes and fees arising out of or in connection with or attributable to the transactions effected pursuant to this Agreement (collectively,
 “Transfer Taxes”). Buyer shall, or shall cause the Company to, file all necessary Tax Returns and other documentation
with respect to all such Transfer Taxes as required by applicable Law. Seller and Buyer shall reasonably cooperate in good faith to minimize,
to the extent permissible under applicable Law, the amount of any such Transfer Taxes.

 

Section 11.4      Cooperation.
Buyer and Seller shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection with the filing of
any Tax Returns and any audit, litigation or other proceeding with respect to Taxes relating to or in connection with the Company or
the Oil & Gas Assets. Such cooperation shall include the retention and (upon the other Party’s request) the provision
of such records and information (including related IRS Forms W-9) which are reasonably relevant to any such Tax Return or audit, litigation,
or other proceeding and making employees available on a mutually convenient basis to provide additional information and explanation of
any material provided hereunder. In addition, each Party agrees to furnish or cause to be furnished to the other, upon reasonable request,
as promptly as practicable, such information and assistance relating to the Company or the Oil & Gas Assets, including access
to books and records, as is reasonably necessary for the filing of all Tax Returns by Buyer or Seller, the making of any election relating
to Taxes, the preparation for any audit by any Taxing Authority and the prosecution or defense of any claim, suit or proceeding relating
to any Tax.

 

Section 11.5      Tax
Audits. If Seller receives notice after the Closing Date of an audit or administrative or judicial proceeding relating to Taxes of
the Company or otherwise with respect to Asset Taxes (a “Tax Contest”), Seller shall use commercially reasonable efforts
to notify Buyer within ten (10) days of receipt of such notice. After the Closing Date, Buyer shall control any Tax Contest;
provided that Buyer shall not resolve, settle or choose not to defend any such Tax Contest that, if determined adversely to the
taxpayer or after the lapse of time, would reasonably be expected give rise to an indemnification obligation of Seller pursuant to the
terms of this Agreement without the prior written consent of Seller, such consent not to be unreasonably withheld, conditioned or delayed.

 

Article 12

CONDITIONS TO CLOSING

 

Section 12.1      Conditions
to the Obligations of Each Party. The obligation of each Party to consummate the transactions to be performed by it in connection
with the Closing is subject to the satisfaction, at or prior to the Closing Date, of the following conditions:

 

(a)       There
shall not be any (i) applicable Law in effect that makes the consummation of the transactions contemplated hereby illegal or any
final and non-appealable order in effect preventing the consummation of the transactions contemplated by this Agreement or any Related
Agreement or (ii) a final, non-appealable order, award or judgment issued by any Governmental Authority of competent jurisdiction
to restrain, prohibit, enjoin or declare illegal the transactions contemplated to occur at the Closing;

 

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(b)       All
of the required Governmental Approvals, if any, shall have been obtained, made or given, and shall be in full force and effect or shall
have occurred and any applicable waiting period (and any extension thereof) under the HSR Act shall have expired or terminated; and

 

(c)       The
sum of (i) all Title Defect Amounts that exceed the Title Threshold Amount (after applying any applicable Title Benefit Amounts to
offset such Title Defect Amounts), plus (ii) the sum of all Environmental Defect Amounts that exceed the Environmental Threshold
Amount, in each case, as finally determined pursuant to Article 3 or Article 4, as applicable, plus (iii) the
aggregate Allocated Value of all Casualty Losses as provided in Section 5.1, shall be less than twenty percent (20.0%) of
the Transaction Value; provided, that, if either Party notifies the other Party of its intention to terminate this Agreement in
accordance with this Section 13.1(c) for failure of the conditions set forth in this Section 12.1(c), such
other Party may, prior to giving effect to such termination, elect by written notice (an “Arbitration Notice”) to submit all
unresolved disputes with respect to any Title Defects, Title Benefits, Title Defect Amounts, Title Benefit Amounts, Environmental Defects
or Environmental Defect Amounts to expert arbitration in accordance with Section 3.1(i) and/or Section 4.5,
as applicable; provided, further, that, in lieu of the timing provided in Section 3.1(i) and/or Section 4.5,
as applicable, the Parties shall select a Title Arbitrator or Environmental Arbitrator, as applicable, within five (5) Business Days
of the delivery of the Arbitration Notice, each Party shall submit such Party’s position to the Title Arbitrator or Environmental
Arbitrator, as applicable, within ten (10) Business Days of the delivery of an Arbitration Notice and each Party shall instruct the
Title Arbitrator or Environmental Arbitrator, as applicable, to deliver a determination of (A) the Environmental Defect Amount(s) attributable
to all disputed Environmental Defects, (B) the Title Defect Amount(s) attributable to all disputed Title Defects and/or (C) the
Title Benefit Amount(s) attributable to all disputed Title Benefits, as applicable within twenty (20) days of the delivery of the
Arbitration Notice. For the avoidance of doubt, (1) if a Party elects to initiate arbitration in accordance with this Section 12.1(c),
neither Party may terminate this Agreement pursuant to Section 13.1(c) for failure of the conditions in this Section 12.1(c) until
final resolution of such arbitration and (2) a Party’s initiation of arbitration in accordance with this Section 12.1(c),
shall not prevent Buyer, prior to giving effect to Section 13.1(c), from electing to waive any asserted Title Defect or Environmental
Defect, as applicable.

 

Section 12.2      Conditions
to Obligations of Buyer. The obligations of Buyer to consummate the transactions to be performed by Buyer in connection with the Closing
is subject to the satisfaction or waiver, at or prior to the Closing Date, of each of the following conditions:

 

(a)       Representations
and Warranties. The (i) Seller Fundamental Representations and Warranties (except Section 6.4, Section 7.4(a) and
Section 7.4(b)) shall be true and correct in all respects as of the Execution Date and the Closing Date (except to the extent
such representations and warranties speak to an earlier date, in which case such representations and warranties shall be true and correct
in all material respects as of such earlier date), (ii) the representations and warranties set forth in Section 6.4,
Section 7.4(a) and Section 7.4(b) (in each case, without giving effect to any materiality or Company
Material Adverse Effect qualifiers contained therein) shall be true and correct in all respects except for de minimis inaccuracies
as of the Execution Date and the Closing Date (except to the extent such representations and warranties speak to an earlier date, in
which case such representations and warranties shall be true and correct in all respects as of such earlier date), and (iii) representations
and warranties in Article 6 and Article 7 other than the Seller Fundamental Representations and Warranties, shall
be true and correct (disregarding all qualifications or limitations as to “materiality,” “Company Material Adverse
Effect” or other similar words of import) as of the Execution Date and the Closing Date (except to the extent such representations
and warranties speak to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier
date), except, with respect to this clause (iii), to the extent the failure of such representations and warranties to be so true
and correct has not had, and would not reasonably be expected to have, individually or in the aggregate, a Company Material Adverse Effect.

 

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(b)       Performance
and Obligations Seller. Seller and the Company shall have performed or complied in all material respects with all covenants required
by this Agreement to be performed or complied with by such Party prior to the Closing.

 

(c)       Closing
Deliveries. Seller and the Company, as applicable, shall have delivered (or be ready, willing and able to deliver) all documents,
instruments and certificates required to be delivered at the Closing by Seller and the Company, as applicable, pursuant to Section 2.10(a).

 

Section 12.3      Conditions
to Obligations of Seller and the Company. The obligation of Seller and the Company to consummate the transactions to be performed
by Seller and the Company in connection with the Closing is subject to the satisfaction or waiver, at or prior to the Closing Date, of
each of the following conditions:

 

(a)       Representations
and Warranties. The (i) Buyer Fundamental Representations and Warranties (except Section 8.11) shall be true and
correct in all respects as of the Execution Date and as of the Closing Date (except to the extent such representations and warranties
speak to an earlier date, in which case such representations and warranties shall be true and correct in all respects as of such earlier
date), (ii) the representations and warranties set forth in Section 8.11 shall be true and correct in all respects except
for de minimis inaccuracies as of the Execution Date and the Closing Date (except to the extent such representations and warranties
speak to an earlier date, in which case such representations and warranties shall be true and correct in all respects as of such earlier
date)and (iii) the representations and warranties in Article 8 other than the Buyer Fundamental Representations and
Warranties shall be true and correct (disregarding all qualifications or limitations as to “materiality,” “material
adverse effect” or other similar words of import) as of the Execution Date and the Closing Date (except to the extent such representations
and warranties speak to an earlier date, in which case such representations and warranties shall be true and correct as of such earlier
date), except, with respect to this clause (iii), to the extent the failure of such representations and warranties to be so true
and correct has not had, and would not reasonably be expected to have, individually or in the aggregate, a Buyer Material Adverse Effect.

 

(b)       Performance
and Obligations of Buyer. Buyer shall have performed or complied in all material respects with all covenants required by this Agreement
to be performed or complied with by Buyer prior to the Closing.

 

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(c)            Closing
Deliveries. Buyer shall have delivered (or be ready, willing and able to deliver) all documents, instruments and certificates required
to be delivered at the Closing by Buyer pursuant to Section 2.10(b).

 

Article 13

TERMINATION

 

Section 13.1     Termination.
This Agreement may be terminated at any time prior to the Closing:

 

(a)            by
the mutual written consent of Buyer and Seller;

 

(b)            by
either Seller or Buyer by written notice to the other, if any applicable Law is in effect making the consummation of the transactions
contemplated hereby illegal or any final and non-appealable order is in effect preventing the consummation of the transactions contemplated
hereby;

 

(c)            by
either Seller or Buyer by written notice to the other, if the Closing shall not have occurred on or before March 31, 2022 (the “Termination
Date”); provided, however, that the right to terminate this Agreement under this Section 13.1(c) shall
not be available to (i) Buyer or Seller, if such Party is then in material breach of its representations or warranties, covenants
or agreements under this Agreement which breach or failure to perform would render a condition precedent to the other Party’s obligations
to consummate the transactions contemplated hereby set forth in Section 12.1 or Section 12.2 or Section 12.3,
as applicable, not capable of being satisfied; (ii) Buyer, if Seller is entitled to terminate this Agreement pursuant to Section 13.1(f);
or (iii) Seller, if Buyer is entitled to terminate this Agreement pursuant Section 13.1(g);

 

(d)            by
Seller by written notice to Buyer, if Buyer breaches any of its representations or warranties contained in this Agreement or breaches
or fails to perform any of its covenants contained in this Agreement, which breach or failure to perform (i) would render a condition
precedent to Seller’s or the Company’s obligations to consummate the transactions contemplated hereby set forth in Section 12.1
or Section 12.3 not capable of being satisfied, and (ii) after the giving of written notice of such breach or failure
to perform to Buyer by Seller, cannot be cured or has not been cured by the earlier of the Termination Date and ten (10) Business
Days after the delivery of such Notice; provided, however, that the right to terminate this Agreement under this Section 13.1(d) shall
not be available to Seller if Seller or any Company is then in material breach of any of its representations or warranties, covenants
or agreements contained in this Agreement, which breach or failure to perform would render a condition precedent to Buyer’s obligations
to consummate the transactions contemplated hereby set forth in Section 12.1 or Section 12.2 not capable of being
satisfied;

 

(e)            by
Buyer by written notice to Seller, if Seller or the Company breach any of their respective representations or warranties contained in
this Agreement or Seller or the Company breach or fail to perform any of its respective covenants contained in this Agreement, which
breach or failure to perform (i) would render a condition precedent to the Buyer’s obligations to consummate the transactions
contemplated hereby set forth in Section 12.1 or Section 12.2 not capable of being satisfied, and (ii) after
the giving of written notice of such breach or failure to perform to Seller by Buyer, cannot be cured or has not been cured by the earlier
of the Termination Date and ten (10) Business Days after the delivery of such Notice; provided, however, that the
right to terminate this Agreement under this Section 13.1(e) shall not be available to Buyer if Buyer is then in material
breach of any of its representations, warranties, covenants or agreements contained in this Agreement, which breach or failure to perform
would render a condition precedent to Seller’s or the Company’s obligations to consummate the transactions contemplated hereby
set forth in Section 12.1 or Section 12.3 not capable of being satisfied;

 

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(f)             by
Seller by written notice to Buyer, if: (i) all of the conditions to Closing set forth in Section 12.1 and Section 12.2
were satisfied or waived as of the date the Closing should have been consummated pursuant to the terms of this Agreement (other than
those conditions that by their terms are to be satisfied at the Closing and could have been satisfied or would have been waived assuming
a Closing would occur), (ii) Seller has notified Buyer that Seller and the Company are ready, willing and able to consummate the
transactions contemplated by this Agreement and the Related Agreements, and (iii) the Buyer fails to complete the Closing within
two (2) Business Days after the delivery of such notification by Seller;

 

(g)            by
Buyer by written notice to Seller, if: (i) all of the conditions to Closing set forth in Section 12.1 and Section 12.3
were satisfied or waived as of the date the Closing should have been consummated pursuant to the terms of this Agreement (other than
those conditions that by their terms are to be satisfied at the Closing and could have been satisfied or would have been waived assuming
a Closing would occur), (ii) Buyer has notified Seller that Buyer is ready, willing and able to consummate the transactions contemplated
by this Agreement and the Related Agreements, and (iii) Seller and the Company fail to complete the Closing within two (2) Business
Days after the delivery of such notification by Buyer; and

 

(h)            by
Seller by written notice to Buyer, if Buyer does not deliver the Deposit to the Escrow Agent in accordance with Section 2.4
within two (2) Business Days following the Execution Date.

 

Section 13.2           Effect
of Termination.

 

(a)            In
the event of the termination of this Agreement pursuant to Section 13.1, this Agreement shall immediately become null and
void, without any liability on the part of any Party or any other Person, and all rights and obligations of each Party shall cease; provided
that (i) the Confidentiality Agreement and the agreements contained in Article 1, Section 9.1(e), Section 9.5,
Section 9.6, this Section 13.2, and Article 14 of this Agreement survive any termination of this
Agreement and remain in full force and effect and (ii) no such termination shall impair the right of any Party hereto to compel
specific performance in accordance with Section 13.3 by the other Party of such other Party’s obligations under this
Agreement that expressly continue following termination of this Agreement, including the distribution of the Deposit pursuant to Section 13.2(b).

 

(b)            Notwithstanding
anything to the contrary in Section 13.2(a), if this Agreement is terminated:

 

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(i)            (A) by
Seller pursuant to Section 13.1(d) or Section 13.1(f), or (B) by either Seller or Buyer pursuant to
Section 13.1(c), if at such time Seller could have terminated this Agreement pursuant to Section 13.1(d) (without
regard to any cure periods contemplated therein) then, in either case, within three (3) Business Days of such termination,
Buyer and Seller shall deliver a joint written instruction to the Escrow Agent, instructing the Escrow Agent to distribute the full amount
of the Deposit to Seller;

 

(ii)            (A) by
either Buyer or Seller pursuant to Section 13.1(a), Section 13.1(b) or Section 13.1(c) (other
than as described in the immediately preceding clause (i)), or (B) by Buyer pursuant to Section 13.1(e) or
Section 13.1(g), then within three (3) Business Days of such termination, Buyer and Seller shall deliver a joint
written instruction to the Escrow Agent, instructing the Escrow Agent to distribute the full amount of the Deposit to Buyer; or

 

(iii)            (A) by
Buyer pursuant to Section 13.1(e) or Section 13.1(g) or (B) by either Seller or Buyer pursuant
to Section 13.1(c), if at such time Seller could have terminated this Agreement pursuant to Section 13.1(e) (without
regard to any cure periods contemplated therein) then, in either case, Buyer shall be entitled to seek Losses up to an aggregate amount
not greater than an amount equal to the Deposit (subject to Section 14.6).

 

(c)            Each
of the Parties acknowledges and agrees that the agreements contained in this Section 13.2 are an integral part of the transactions
contemplated by this Agreement and that, without these agreements, the Parties would not enter into this Agreement. The Parties acknowledge
and agree that (i) the Parties have expressly negotiated the provisions of this Section 13.2, (ii) in light of
the circumstances existing at the time of the execution of this Agreement (including the inability of the Parties to quantify the damages
that may be suffered by Seller, the Company and their Affiliates) the provisions of this Section 13.2 are reasonable, (iii) the
Deposit, represents a good faith, fair estimate of the damages that Seller, the Company and their Affiliates would suffer, and (iv) the
Deposit, shall be payable as liquidated damages (and not as a penalty) without requiring Seller, the Company or any other Person to prove
actual damages. In the event that Buyer shall fail to execute and deliver a joint written instruction pursuant to Section 13.2(b) when
due, Buyer shall reimburse Seller for all costs and expenses actually incurred or accrued by Seller and its Affiliates and direct and
indirect equityholders (including fees and expenses of counsel) in connection with collection under and enforcement in full of this Article 13,
together with interest on such amount at a rate per annum equal to the “prime rate” at large United States money center banks
in effect on the date such payment was required to be made (as published by the Wall Street Journal) through the date such payment was
actually received. In addition, in the event that Seller shall fail to execute and deliver a joint written instruction pursuant to Section 13.2(b) when
due, Seller shall reimburse Buyer for all costs and expenses actually incurred or accrued by Buyer and its Affiliates and direct and
indirect equityholders (including fees and expenses of counsel) in connection with collection under and enforcement in full of this Article 13,
together with interest on such amount at a rate per annum equal to the “prime rate” at large United States money center banks
in effect on the date such payment was required to be made (as published by the Wall Street Journal) through the date such payment was
actually received. In no event shall this Section 13.2(c) be construed to mean that receipt of any financing is a condition
to Buyer’s obligations hereunder, rather, the release of the Deposit in accordance with Section 13.2(b) shall
be payable when required in accordance with this Agreement regardless of whether or not Buyer received the proceeds from any contemplated
debt or equity financing.

 

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(d)            Without
limiting the Parties’ respective rights under Section 13.3, the right of Buyer or Seller, as applicable, to receive
the full Deposit pursuant to Section 13.2(b) shall be the sole and exclusive remedy (except as expressly set forth herein)
of Seller against Buyer and its Affiliates or Buyer against Seller and the Company and their respective Affiliates, as applicable, in
connection with a termination of this Agreement; provided that, notwithstanding anything to the contrary in Section 13.2
or Section 13.3, no Party shall be relieved of any liability or obligations resulting from a willful or material breach of
its representations, warranties, covenants and agreements set forth in this Agreement, including in the event a Party previously paid
the Deposit. While Buyer or Seller, as applicable, may pursue both a grant of specific performance under Section 13.3 and
seek payment of the Deposit under Section 13.2(b), under no circumstances shall Seller and the Company or Buyer, as applicable,
be permitted or entitled to receive both a grant of specific performance and the payment of the Deposit pursuant to Section 13.2(b) in
connection with the termination of this Agreement (except in the case where Buyer is required to specifically perform its obligations
to close the transaction contemplated by this Agreement and the Deposit is to be released to Seller as part of the Closing).

 

(e)            For
the avoidance of doubt and without limiting Seller’s rights under this Section 13.2, Section 13.3 or elsewhere
under this Agreement, for all purposes of this Agreement, the failure of Buyer to (i) consummate the Closing when required and (ii) to
make the payments and issue the shares of Buyer Common Stock, in each case, as and when required by Section 2.10(b) shall
be an intentional breach of this Agreement by the Buyer that is not capable of being cured, that has prevented consummation of the transactions
contemplated hereby (including if such failure results from the Buyer is being unable to obtain all or any portion of any contemplated
financing (including financing provided by the issuance of shares of Buyer Common Stock) for the transactions contemplated hereby or
failing to take all actions when and in the manner required of it hereunder), and that gives rise to Seller’s termination right
pursuant to Section 13.1(f); provided, that for the avoidance of doubt, the Buyer shall not be required to consummate
the Closing, and failure of the Buyer to consummate the Closing shall not be deemed an intentional breach, to the extent the conditions
precedent to the Buyer’s obligations to consummate the transactions contemplated hereby set forth in Section 12.1 or
Section 12.2 have not been satisfied (other than those conditions that by their terms are to be satisfied at the Closing,
and could have been satisfied or would have been waived assuming a Closing would occur).

 

Section 13.3           Specific
Performance. The Parties agree that irreparable damage would occur, for which no adequate remedy at law would exist and for which
monetary damages would be inadequate, in the event that any of the provisions of this Agreement were not performed by the Parties in
accordance with their specific terms or were otherwise breached by the Parties. It is accordingly agreed that, unless and until (subject
to the provisions of this Agreement which expressly survive termination hereof) Buyer or Seller has terminated this Agreement in accordance
with Section 13.1, Buyer, on one hand, and Seller and the Company, on the other hand, shall be entitled to seek an injunction
or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement (including
the obligation to consummate the transactions contemplated by this Agreement and the Buyer’s obligation to pay, and the right of
Seller to receive, the Purchase Price) in addition to any other remedy to which such Party is entitled at law or in equity. Each of the
Parties hereby irrevocably waives any requirement for the security or posting of any bond in connection with such relief. The Parties
acknowledge and agree that if Buyer or Seller validly terminates this Agreement pursuant to Section 13.1, then such Person
shall not thereafter have the right to specific performance pursuant to this Section 13.3, (other than to enforce the performance
of such other Party’s obligations under this Agreement that expressly continue following termination of this Agreement, including
the distribution of the Deposit pursuant to Section 13.2(b)).

 

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Article 14

OTHER PROVISIONS

 

Section 14.1           Notices.

 

(a)            Any
notice, request, instruction, correspondence, or other document to be given hereunder by any Party to the other Parties (herein collectively
called “Notice”) shall be in writing and delivered (i) by courier or certified mail, in each case requiring acknowledgement
of receipt, or (i) in person or electronic mail, in any such case as follows:

 

If to Seller,
addressed to:

 

Bison Oil & Gas Partners
II, LLC

518 17th Street, Suite 1800

Denver, Colorado 80202

Attn:     Austin
Akers

Telephone:     (720)
644-6997

Email:     aakers@bisonog.com

 

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

 

Bracewell LLP

711 Louisiana Street, Suite 2300

Houston, Texas 77002

Attn:                Austin
Lee; Ben Martin

Telephone:      713.221.3307; 713.221.1167

Email:             austin.lee@bracewell.com;
ben.martin@bracewell.com

 

Carnelian Energy Capital Management,
L.P.

2229 San Felipe Street, Suite 1450

Houston, Texas 77019

Attn: Matthew Savage; Matt Kelly

Email: matts@carnelianec.com; matt@carnelianec.com

 

If to Buyer,
addressed to:

 

Civitas Resources, Inc.

410 17th Street, Suite 1400

Denver, Colorado 80202

Attention:      Skip Marter

Telephone:    720-225-6697

Email:           smarter@civiresources.com

 

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

 

Kirkland & Ellis LLP

609 Main Street, Suite 4700

Houston, Texas 77002

Attention: Doug Bacon, P.C.; Anthony Speier, P.C.

E-mail: douglas.bacon@kirkland.com; anthony.speier@kirkland.com

 

(b)            Notice
given by personal delivery or courier service shall be effective upon actual receipt or at the beginning of the recipient’s next
Business Day after receipt if not received during the recipient’s normal business hours. Notice given by electronic mail shall
be effective upon delivery (without notice of failed delivery to the required Party) if delivered during the recipient’s normal
business hours, or at the beginning of the recipient’s next Business Day after delivery if not delivered during the recipient’s
normal business hours. Notice given by certified mail, return receipt requested, shall be effective three (3) Business Days after
mailing. Notice sent by overnight courier shall be effective one (1) day after sending. Any Party may change any address to
which Notice is to be given to it by giving Notice as provided above of such change of address.

 

Section 14.2           Governing
Law; Consent to Jurisdiction; Waiver of Jury Trial.

 

(a)            Governing
Law. THIS AGREEMENT AND THE LEGAL RELATIONS AMONG THE PARTIES SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF DELAWARE, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER
JURISDICTION; PROVIDED, HOWEVER, THAT ANY MATTERS RELATED TO REAL PROPERTY SHALL BE GOVERNED BY THE LAWS OF THE STATE WHERE SUCH
REAL PROPERTY IS LOCATED.

 

(b)            Consent
to Jurisdiction and Service of Process; Appointment of Agent for Service of Process. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS
AGREEMENT, EACH PARTY TO THIS AGREEMENT HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE DELAWARE COURT OF CHANCERY (OR TO THE EXTENT
SUCH COURTS DO NOT HAVE SUBJECT MATTER JURISDICTION, THE FEDERAL COURT OF THE UNITED STATES OF AMERICA SITTING IN THE STATE OF DELAWARE),
AND IRREVOCABLY AGREES THAT ALL ACTIONS OR PROCEEDINGS SEEKING TO ENFORCE ANY PROVISION OF, OR BASED ON ANY MATTER ARISING OUT OF OR
IN CONNECTION WITH, THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER SUCH ACTIONS OR PROCEEDINGS ARE BASED IN STATUTE,
TORT, CONTRACT OR OTHERWISE), SHALL BE LITIGATED IN SUCH COURTS. EACH PARTY HERETO (I) CONSENTS TO SUBMIT ITSELF TO THE PERSONAL
JURISDICTION OF SUCH COURTS FOR SUCH ACTIONS OR PROCEEDINGS, (II) AGREES THAT IT WILL NOT ATTEMPT TO DENY OR DEFEAT SUCH PERSONAL
JURISDICTION BY MOTION OR OTHER REQUEST FOR LEAVE FROM ANY SUCH COURT, AND (III) AGREES THAT IT WILL NOT BRING ANY SUCH ACTION OR
PROCEEDING IN ANY COURT OTHER THAN SUCH COURTS. EACH PARTY HERETO ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, GENERALLY
AND UNCONDITIONALLY, THE EXCLUSIVE AND IRREVOCABLE JURISDICTION AND VENUE OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON
CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY NON-APPEALABLE JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH ACTIONS OR PROCEEDINGS.
A COPY OF ANY SERVICE OF PROCESS SERVED UPON THE PARTIES HERETO SHALL BE MAILED BY REGISTERED MAIL TO THE RESPECTIVE PARTY EXCEPT THAT,
UNLESS OTHERWISE PROVIDED BY APPLICABLE LAW, ANY FAILURE TO MAIL SUCH COPY SHALL NOT AFFECT THE VALIDITY OF SERVICE OF PROCESS. IF ANY
AGENT APPOINTED BY A PARTY HERETO REFUSES TO ACCEPT SERVICE, EACH PARTY HERETO AGREES THAT SERVICE UPON THE APPROPRIATE PARTY BY REGISTERED
MAIL SHALL CONSTITUTE SUFFICIENT SERVICE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF A PARTY HERETO TO SERVE PROCESS IN ANY OTHER MANNER
PERMITTED BY LAW.

 

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(c)            Waiver
of Jury Trial. EACH PARTY ACKNOWLEDGES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED
AND DIFFICULT ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION
ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY ACKNOWLEDGES, AGREES
AND CERTIFIES THAT: (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD, IN THE EVENT OF LITIGATION, SEEK TO PREVENT OR DELAY ENFORCEMENT OF SUCH WAIVER; (II) IT UNDERSTANDS AND
HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVER; (III) IT MAKES SUCH WAIVER VOLUNTARILY; AND (IV) IT HAS BEEN INDUCED TO ENTER
INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 14.2(c).

 

Section 14.3           Entire
Agreement; Amendments and Waivers. This Agreement, the Confidentiality Agreement and the Related Agreements constitute the entire
agreement between the Parties with respect to the subject matter hereof and supersede all prior agreements and understandings, both written
and oral, among the Parties with respect to the subject matter hereof. The Annexes, Schedules and the Exhibits referred to herein are
attached hereto are made a part of this Agreement. No amendment, supplement, modification, or waiver of this Agreement shall be binding
unless executed in writing by each Party to be bound thereby. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provision hereof (regardless of whether similar), nor shall any such waiver constitute a continuing
waiver unless otherwise expressly provided.

 

Section 14.4           Conflicting
Provisions. This Agreement and the Related Agreements, read as a whole, set forth the Parties’ rights, responsibilities, and
liabilities with respect to the transactions contemplated by this Agreement and the Related Agreements. In this Agreement and the Related
Agreements, and as between them, specific provisions prevail over general provisions. In the event of a conflict between this Agreement
and the Related Agreements, this Agreement shall control.

 

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Section 14.5           Binding
Effect, Assignment and Third Party Beneficiaries. This Agreement shall be binding upon and inure to the benefit of the Parties and
their successors and permitted assigns, but neither this Agreement nor any of the rights, benefits, or obligations hereunder shall be
assigned or transferred, by operation of law, or otherwise, by any Party hereto without the prior written consent of the other Party.
Except as set forth in Section 14.10, nothing in this Agreement, express or implied, is intended to confer upon any Person
other than the Parties and their successors and assigns, any rights, benefits, or obligations hereunder.

 

Section 14.6           Severability.
If any provision (or any part of a provision) of the Agreement is rendered or declared invalid, illegal or unenforceable by reason of
any existing or subsequently enacted legislation or by decree of a court of last resort, the Parties shall promptly meet and negotiate
substitute provisions (that come closest to expressing the intention of the invalid, illegal or unenforceable provision) for those rendered
or declared invalid, illegal or unenforceable, but all of the remaining provisions of this Agreement shall remain in full force and effect.

 

Section 14.7           Interpretation.
Neither this Agreement nor any of the Related Agreements shall be construed against any Party, and no consideration shall be given or
presumption made, on the basis of who drafted this Agreement, any Related Agreement, or any provision hereof or thereof, or who supplied
the form of this Agreement or any of the Related Agreements. Each Party agrees that this Agreement has been purposefully drawn and correctly
reflects its understanding of the transactions contemplated by this Agreement and, therefore, waives the application of any Law, regulation,
holding or rule of construction providing that ambiguities in an agreement or other document will be construed against the Party
drafting such agreement or document.

 

Section 14.8           Headings.
The headings of the several Articles and Sections herein are inserted for convenience of reference only and are not intended to be a
part of or to affect the meaning or interpretation of this Agreement.

 

Section 14.9           Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed an original, but all of which together shall
constitute one and the same instrument. Signatures of a Party to this Agreement or other documents executed in connection herewith that
are sent to the other Parties by facsimile transmission or electronic mail shall be binding as evidence of acceptance of the terms hereof
or thereof by such signatory Party.

 

Section 14.10         No
Recourse. Notwithstanding anything that may be expressed or implied in this Agreement, the Related Agreements or any document, agreement,
or instrument delivered contemporaneously herewith, and notwithstanding the fact that any Party may be a partnership or limited liability
company, each Party hereto, by its acceptance of the benefits of this Agreement, covenants, agrees and acknowledges that no Persons other
than the Parties shall have any obligation hereunder and that it has no rights of recovery hereunder against, and no recourse hereunder,
under any Related Agreements or under any documents, agreements, or instruments delivered contemporaneously herewith or in respect of
any oral representations made or alleged to be made in connection herewith or therewith shall be had against, any former, current or
future director, officer, agent, attorney, financing source, Affiliate, manager, assignee, incorporator, controlling Person, fiduciary,
representative or employee of any Party (or any of their successor or permitted assignees), against any former, current, or future direct
or indirect equityholder, general or limited partner, manager, stockholder or member of any Party (or any of their successors or permitted
assignees) or any Affiliate thereof or against any former, current or future director, officer, agent, attorney, financing source, employee,
Affiliate, manager, assignee, incorporator, controlling Person, fiduciary, representative, general or limited partner, stockholder, manager
or member of any of the foregoing, but in each case not including the Parties (each, a “Party Affiliate”), whether
by or through attempted piercing of the corporate veil, by or through a claim (whether in tort, contract or otherwise) by or on behalf
of such party against the Party Affiliates, by the enforcement of any assessment or by any legal or equitable proceeding, or by virtue
of any statute, regulation or other applicable Law, or otherwise; it being expressly agreed and acknowledged that no personal liability
whatsoever shall attach to, be imposed on, or otherwise be incurred by any Party Affiliate, as such, for any obligations of the applicable
party under this Agreement or the transactions contemplated hereby, under any Related Agreement or under any documents or instruments
delivered contemporaneously herewith, in respect of any oral representations made or alleged to be made in connection herewith or therewith,
or for any claim (whether in tort, contract or otherwise) based on, in respect of, or by reason of, such obligations or their creation.
Except to the extent otherwise expressly set forth in, and subject in all cases to the terms and conditions of and limitations herein,
this Agreement may only be enforced against, and any claim or cause of action of any kind based upon, arising out of, or related to this
Agreement, or the negotiation, execution or performance of this Agreement, may only be brought against the entities that are expressly
named as Parties hereto and then only with respect to the specific obligations set forth herein with respect to such Party. Each Party
Affiliate is expressly intended as a third-party beneficiary of this Section 14.10.

 

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Section 14.11         Disclaimer
of Warranties and Representations.

 

(a)            Buyer
acknowledges and agrees that it is sophisticated in the evaluation and purchase of, and investment (directly or indirectly) in, the industry
in which the Company operates, oil and gas properties and related facilities, and is capable of evaluating the merits and risks of the
transactions contemplated by this Agreement and the Related Agreements and is able to bear the substantial economic risk of such investment
for an indefinite period of time. In making its decision to enter into this Agreement, the Related Agreements and to consummate the transactions
contemplated herein and therein, Buyer, except to the extent of the express representations and warranties set forth in Article 6
and Article 7 hereof and in the certificates delivered by Seller and the Company at Closing pursuant to Section 2.10(a)(i),
(i) has relied and shall rely solely on its own independent investigation and evaluation of the Company and the Oil & Gas
Assets and the advice of its own legal, Tax, economic, environmental, engineering, geological and geophysical advisors and the express
provisions of this Agreement and the Related Agreement and not on any comments, statements, projections or other materials made or given
by any employees, officers, managers, representatives, consultants or advisors engaged by Seller, the Company or any of their respective
Affiliates and (ii) has satisfied or shall satisfy itself through its own due diligence as to the title, environmental and physical
condition of and contractual arrangements and other matters affecting the Company (including the Oil & Gas Assets). Buyer has
been afforded full access to the books and records, facilities and personnel of the Company for purposes of conducting a due diligence
investigation. Buyer has had an opportunity to ask questions of, and receive answers from, the officers and representatives of Seller,
the Company and their respective Affiliates concerning this Agreement, the Related Agreements and the transactions contemplated hereby
and thereby, as well as the Company’s business, operations, properties, prospects, plans, management and financial affairs, which
questions were answered to its satisfaction. Buyer may be in possession of certain projections and other forecasts regarding the Company,
including projected financial statements, cash flow items and other data of the Company and certain business plan information of the
Company. Buyer acknowledges that there are substantial uncertainties inherent in attempting to make such projections and other forecasts
and plans, that Buyer is not relying on such projections and other forecasts and plans, that Buyer is familiar with such uncertainties,
that Buyer is taking full responsibility for making its own evaluation of the adequacy and accuracy of all projections and other forecasts
and plans so furnished to it, and Buyer shall not have any claim against any Person with respect thereto. Accordingly, Buyer acknowledges
that neither Seller, the Company, nor any of their Affiliates nor any of their respective employees, officers, managers, representatives,
consultants or advisors has made any representation or warranty with respect to such projections and other forecasts and plans. Buyer
acknowledges and represents, warrants and agrees that it has not relied upon the accuracy or completeness of any express or implied representation,
warranty, statement or information of any nature (including, for the avoidance of doubt, relating to quality, quantity, condition, merchantability
or fitness for a particular purpose) made or provided by or on behalf of Seller or the Company, except for the representations and warranties
in Article 6 and Article 7 and in the certificates delivered by Seller and the Company at Closing pursuant to
Section 2.10(a)(i), and waives any right Buyer or any of its respective Affiliates may have against Seller, the Company or
any of their respective Affiliates or any of their respective representatives, consultants, advisors, employees, officers or managers
with respect to any inaccuracy in any such representation, warranty, statement or information, or with respect to any omission or concealment,
on the part of Seller, the Company or any of their respective representative, consultant, advisor, employee, officer or manager thereof,
of any potentially material information.

 

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(b)            EXCEPT
AS AND TO THE LIMITED EXTENT EXPRESSLY SET FORTH IN Article 6 AND Article 7
AND in the certificates delivered by seller and the Company at closing pursuant TO Section 2.10(a)(i):
(I)  BUYER ACKNOWLEDGES NEITHER SELLER NOR THE COMPANY NOR THEIR RESPECTIVE AFFILIATES, REPRESENTATIVES, CONSULTANTS, ADVISORS,
OFFICERS, MANAGERS, OR EMPLOYEES HAS MADE, AND SELLER AND THE COMPANY HEREBY EXPRESSLY DISCLAIMS AND NEGATES (ON ITS OWN BEHALF AND ON
BEHALF OF ITS AFFILIATES AND ITS AND THEIR RESPECTIVE, REPRESENTATIVES, CONSULTANTS, ADVISORS, OFFICERS, MANAGERS, OR EMPLOYEES), AND
BUYER HEREBY EXPRESSLY WAIVES, ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE WITH RESPECT
TO THE OIL & GAS ASSETS AND OTHER PROPERTIES OF THE COMPANY OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THE RELATED
AGREEMENTS, AND (II) SELLER AND THE COMPANY EXPRESSLY DISCLAIMS (ON ITS BEHALF AND ON BEHALF OF ITS AFFILIATES AND ITS AND THEIR
RESPECTIVE, REPRESENTATIVES, CONSULTANTS, ADVISORS, OFFICERS, MANAGERS, OR EMPLOYEES), AND BUYER HEREBY EXPRESSLY WAIVES, ANY AND ALL
LIABILITY AND RESPONSIBILITY OF ANY SUCH PERSON FOR ANY REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION WITH RESPECT TO THE OIL &
GAS ASSETS AND OTHER PROPERTIES OF THE COMPANY OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR THE RELATED AGREEMENTS, MADE OR
COMMUNICATED (ORALLY OR IN WRITING) TO BUYER OR ANY OF ITS AFFILIATES, REPRESENTATIVES, CONSULTANTS, ADVISORS, OFFICERS, MANAGERS, OR
EMPLOYEES (INCLUDING ANY OPINION, INFORMATION, PROJECTION OR ADVICE THAT MAY HAVE BEEN PROVIDED TO ANY SUCH PERSON).

 

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(c)            EXCEPT
AS AND TO THE LIMITED EXTENT EXPRESSLY SET FORTH IN Article 6 AND Article 7
AND IN THE CERTIFICATES DELIVERED BY SELLER AND THE COMPANY AT CLOSING PURSUANT TO Section 2.10(a)(i),
AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SELLER AND THE COMPANY EXPRESSLY DISCLAIMS AND NEGATES, AND BUYER HEREBY WAIVES,
ANY REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE, AS TO ANY OF THE FOLLOWING: (I) THE
ACCURACY, COMPLETENESS OR MATERIALITY OF RECORDS, INFORMATION, DATA OR OTHER MATERIALS (WRITTEN OR ORAL) NOW, HERETOFORE OR HEREAFTER
FURNISHED TO BUYER OR ANY ITS RESPECTIVE AFFILIATES, REPRESENTATIVES, CONSULTANTS, ADVISORS, OFFICERS, MANAGERS, OR EMPLOYEES; (II) THE
CONTENTS, CHARACTER OR NATURE OF ANY REPORT OF ANY PETROLEUM ENGINEERING CONSULTANT, OR ANY ENGINEERING, GEOLOGICAL OR SEISMIC DATA OR
INTERPRETATION, RELATING TO THE OIL & GAS ASSETS; (III) ANY ESTIMATES OF THE VALUE OF, OR FUTURE REVENUES GENERATED BY,
THE OIL & GAS ASSETS; (IV) PRODUCTION RATES, RECOMPLETION OPPORTUNITIES, DECLINE RATES, GAS BALANCING INFORMATION, OR THE
QUALITY, QUANTITY, VOLUME, OR RECOVERABILITY OF THE RESERVES OF HYDROCARBONS, IF ANY, ATTRIBUTABLE TO THE OIL & GAS ASSETS
OR THE COMPANY’S INTEREST THEREIN; (V) TITLE TO ANY OF THE OIL & GAS ASSETS OR OTHER PROPERTIES OF THE COMPANY; (VI) MAINTENANCE,
REPAIR, CONDITION, QUALITY, SUITABILITY, MARKETABILITY, MERCHANTABILITY, OR FITNESS FOR A PARTICULAR PURPOSE OF THE OIL & GAS
ASSETS OR OTHER PROPERTIES OF THE COMPANY; (VII) ANY RIGHTS OF BUYER OR ANY OF ITS AFFILIATES UNDER APPROPRIATE STATUTES TO CLAIM
DIMINUTION OF CONSIDERATION OR RETURN OF THE PURCHASE PRICE; (VIII) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM DEFECTS WITH
RESPECT TO THE OIL & GAS ASSETS OR OTHER PROPERTIES OF THE COMPANY, WHETHER KNOWN OR UNKNOWN; (IX) ANY AND ALL IMPLIED
WARRANTIES EXISTING UNDER APPLICABLE LAW WITH RESPECT TO THE PROPERTIES OR TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT AND THE RELATED
AGREEMENTS AND (X) THE ENVIRONMENTAL OR OTHER CONDITION OF THE OIL & GAS ASSETS OR OTHER PROPERTIES OF THE COMPANY, INCLUDING
ANY IMPLIED OR EXPRESS WARRANTY REGARDING ENVIRONMENTAL LAWS, THE RELEASE OF SUBSTANCES, WASTES OR MATERIALS INTO THE ENVIRONMENT, OR
PROTECTION OF THE ENVIRONMENT OR HEALTH. IT IS THE EXPRESS INTENTION OF THE PARTIES THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS AND
WARRANTIES OF SELLER AND THE COMPANY IN Article 6 AND Article 7
AND IN THE CERTIFICATES DELIVERED BY SELLER AND THE COMPANY AT CLOSING PURSUANT TO Section 2.10(a)(i),
SUBJECT TO ARTICLE 4, THE OIL & GAS ASSETS AND OTHER PROPERTIES OF THE COMPANY ARE BEING ACCEPTED BY BUYER, “AS
IS, WHERE IS, WITH ALL FAULTS AND DEFECTS” AND IN THEIR PRESENT CONDITION AND STATE OF REPAIR, AND BUYER HAS MADE OR WILL MAKE
SUCH INSPECTIONS OF SUCH ASSETS AND THE PROPERTIES AS BUYER DEEMS APPROPRIATE.

 

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(d)            BUYER
ACKNOWLEDGES THAT THE OIL & GAS ASSETS HAVE BEEN USED FOR EXPLORATION, DEVELOPMENT, AND PRODUCTION OF OIL & GAS AND
THAT EQUIPMENT AND SITES INCLUDED IN THE PROPERTIES MAY CONTAIN ASBESTOS OR NATURALLY OCCURRING RADIOACTIVE MATERIAL (“NORM”)
OR OTHER HAZARDOUS SUBSTANCES. NORM MAY AFFIX OR ATTACH ITSELF TO THE INSIDE OF WELLS, MATERIALS, AND EQUIPMENT AS SCALE, OR IN
OTHER FORMS. THE WELLS, MATERIALS, AND EQUIPMENT LOCATED ON THE OIL & GAS ASSETS OR OTHER PROPERTIES OF THE COMPANY OR INCLUDED
IN SUCH ASSETS OR PROPERTIES MAY CONTAIN NORM AND OTHER WASTES OR OTHER HAZARDOUS SUBSTANCES. NORM CONTAINING MATERIAL, OTHER WASTES
AND OTHER HAZARDOUS SUBSTANCES MAY HAVE COME IN CONTACT WITH VARIOUS ENVIRONMENTAL MEDIA, INCLUDING AIR, WATER, SOILS OR SEDIMENT.
SPECIAL PROCEDURES MAY BE REQUIRED FOR THE ASSESSMENT, REMEDIATION, REMOVAL, TRANSPORTATION, OR DISPOSAL OF ENVIRONMENTAL MEDIA,
WASTES, ASBESTOS, NORM AND/OR HAZARDOUS SUBSTANCES FROM THE OIL & GAS ASSETS OR OTHER PROPERTIES OF THE COMPANY.

 

(e)            With
respect to the Oil & Gas Assets currently operated by the COMPANY, SelleR AND THE COMPANY makes no representation, warranty,
or covenant herein that Buyer or ITS RESPECTIVE affiliates will (either directly or indirectly through ownership of the COMPANY) become
operator of any or all of such Oil & Gas Assets. Buyer acknowledges that operations and operatorship after Closing will be governed
by the applicable operating agreements or other related agreements affecting such Oil & Gas Assets.

 

(f)            THE
PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE DISCLAIMERS OF CERTAIN REPRESENTATIONS AND WARRANTIES
CONTAINED IN THIS Section 14.11 ARE “CONSPICUOUS” DISCLAIMERS
FOR PURPOSES OF ANY APPLICABLE LAW.

 

Section 14.12         Conflicts
and Privilege.

 

(a)            The
Parties agree that, as to all communications among Bracewell LLP (“Bracewell”), on the one hand, and Seller or the
Company and their respective direct and indirect equityholders and Affiliates that relate to the negotiation of this Agreement or any
Related Agreement or any of the transactions contemplated hereby or thereby, the attorney-client privilege and the expectation of client
confidence belongs to Seller and may be controlled by Seller and shall not pass to or be claimed by the Company from and after the Closing.
Notwithstanding the foregoing, in the event that a dispute arises between the Buyer, the Seller, the Company and a Third Party other
than another Party or their equityholders or Affiliates after the Closing, the Seller and/or the Company may assert the attorney-client
privilege to prevent disclosure of confidential communications by Bracewell to such Third Party.

 

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(b)            The
Parties agree that, as to all communications among Kirkland & Ellis LLP (“Kirkland”), on the one hand, and
Buyer and its respective direct and indirect equityholders and Affiliates that relate to the negotiation of this Agreement or any Related
Agreement or any of the transactions contemplated hereby or thereby, the attorney-client privilege and the expectation of client confidence
belongs to Buyer and may be controlled by Buyer and shall not pass to or be claimed by the Seller or the Company from and after the Closing.
Notwithstanding the foregoing, in the event that a dispute arises between the Seller, the Buyer, the Company and a Third Party other
than another Party or their equityholders or Affiliates after the Closing, the Buyer may assert the attorney-client privilege to prevent
disclosure of confidential communications by Kirkland to such Third Party.

 

Section 14.13         Schedules.
Any fact or item disclosed in any Schedule shall be deemed disclosed in each other Schedule to which such fact or item may apply so long
as it is reasonably apparent that such disclosure is applicable to such other Schedule(s). The headings contained in each Schedule are
for convenience of reference only and shall not be deemed to modify or influence the interpretation of the information contained in a
Schedule or this Agreement. The Schedules are not intended to constitute, and shall not be construed as, an admission or indication that
any such fact or item is required to be disclosed. Neither the specification of any dollar amount in the representations and warranties
contained in this Agreement nor the inclusion of any fact or item disclosed in the Schedules shall by reason only of such inclusion be
deemed to be material, to establish any standard of materiality or to define further the meaning of such terms for purposes of this Agreement;
and no Party shall use the fact of the setting of the amounts or the fact of the inclusion of any item in the Schedules in any dispute
or controversy as to whether any obligation, item or matter not described or included in the Schedules is or is not required to be disclosed
(including whether the amount or items are required to be disclosed as material or threatened) or is within or outside of the ordinary
course of business. The Schedules shall not be deemed to expand in any way the scope or effect of any of representations, warranties,
covenants or agreements contained in this Agreement. Any item of information, matter or document disclosed or referenced in, or attached
to, the Schedules shall not constitute, or be interpreted to expand the scope of the Parties’ respective representations and warranties,
covenants, conditions or agreements contained in this Agreement. Matters reflected in the Schedules are not necessarily limited
to matters required by this Agreement to be reflected herein and may be included solely for informational purposes. No disclosure on
a Schedule relating to any possible breach or violation of any Contract or Law shall be construed as an admission or indication that
any such breach or violation exists or has actually occurred. The information contained in the Schedules shall be kept strictly confidential
by the Parties and no Third Party may rely on any information disclosed or set forth therein. Moreover, in disclosing the information
in the Schedules, Seller expressly does not waive any attorney-client privilege associated with such information or any protection afforded
by the work-product doctrine with respect to any of the matters disclosed or discussed therein.

 

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Section 14.14         Time
is of the Essence. Time is of the essence in this Agreement. If the date specified in this Agreement for giving any notice or taking
any action is not a Business Day (or if the period during which any notice is required to be given or any action taken expires on a date
which is not a Business Day), then the date for giving such notice or taking such action (and the expiration date of such period during
which notice is required to be given or action taken) shall be the next day which is a Business Day.

 

Section 14.15         Non-Compensatory
Damages. NEITHER BUYER INDEMNIFIED PARTIES NOR SELLER INDEMNIFIED PARTIES SHALL BE ENTITLED TO RECOVER FROM SELLER OR BUYER, OR THEIR
RESPECTIVE AFFILIATES, ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE DAMAGES OR DAMAGES FOR LOST
PROFITS OF ANY KIND ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE RELATED AGREEMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY
OR THEREBY, EXCEPT (A) TO THE EXTENT ANY SUCH PARTY (OR ANY OF THE OTHER BUYER INDEMNIFIED PARTIES OR SELLER INDEMNIFIED PARTIES,
AS APPLICABLE) SUFFERS SUCH DAMAGES (INCLUDING COSTS OF DEFENSE AND REASONABLE ATTORNEY’S FEES INCURRED IN CONNECTION WITH DEFENDING
OF SUCH DAMAGES) TO A THIRD PARTY, WHICH DAMAGES (INCLUDING COSTS OF DEFENSE AND REASONABLE ATTORNEY’S FEES INCURRED IN CONNECTION
WITH DEFENDING AGAINST SUCH DAMAGES) SHALL NOT BE EXCLUDED BY THIS PROVISION AS TO RECOVERY HEREUNDER OR (B) LOSSES TO THE EXTENT
THEY ARE THE REASONABLY FORESEEABLE RESULT OF THE UNDERLYING BREACH OF THIS AGREEMENT GIVING RISE TO SUCH LOSSES. SUBJECT TO THE PRECEDING
SENTENCE, BUYER AND SELLER WAIVE ANY RIGHT TO RECOVER ANY SPECIAL, INDIRECT, CONSEQUENTIAL, PUNITIVE, EXEMPLARY, REMOTE OR SPECULATIVE
DAMAGES, OR DAMAGES FOR LOST PROFITS OF ANY KIND, ARISING IN CONNECTION WITH OR WITH RESPECT TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.

 

[Signature pages to
follow]

 

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Each
of the Parties has executed this Agreement as of the date first written above.

 

	 	SELLER:
	 	 
	 	BISON OIL & GAS PARTNERS II, LLC
	 	 	 
	 	By:	/s/ John Austin Akers
	 	Name:	John Austin Akers
	 	Title:	Chief Executive Officer
	 	 	 
	 	COMPANY:
	 	 	 
	 	BISON OIL & GAS II, LLC
	 	 	 
	 	By:	/s/ John Austin Akers
	 	Name:	 John Austin Akers
	 	Title:	Chief Executive Officer
	 	

 

 Signature
Page to Membership Interest Purchase Agreement

 

    

     

    

 

	 	Buyer:
	 	 
	 	CIVITAS RESOURCES, INC.
	 	 	 
	 	By:	 /s/ Marianella Foschi
	 	Name:	Marianella Foschi
	 	Title:	Chief Financial Officer

 

 Signature
Page to Membership Interest Purchase Agreement

 

    

     

    

 

EXHIBIT D

 

FORM OF REGISTRATION
RIGHTS AGREEMENT

 

THIS REGISTRATION RIGHTS
AGREEMENT (this “Agreement”) is made and entered into as of [●], 2022, by and among Civitas Resources, Inc.,
a Delaware corporation (the “Company”), each of the other parties hereto listed on the signature pages hereof
(each, an “Initial Holder” and collectively, the “Initial Holders”) and the other Holders (as defined
below) from time to time parties hereto.

 

RECITALS:

 

WHEREAS, the Company is party
to that certain Membership Interest Purchase Agreement, dated as of January 31, 2022, by and among Bison Oil & Gas
Partners II, LLC, as Seller, Bison Oil & Gas II, LLC and the Company (the “Purchase Agreement”);

 

WHEREAS, upon consummation
of the transactions contemplated by the Purchase Agreement, on the date hereof (the “Closing Date”), the Company will
issue to the Initial Holders an aggregate of 2,300,000 shares (the “Shares”) of Common Stock (as defined below) in
accordance with the terms of the Purchase Agreement; and

 

WHEREAS, pursuant to the
Purchase Agreement, the Company has agreed to provide the registration and other rights set forth in this Agreement for the benefit of
the Holders.

 

NOW THEREFORE, in consideration
of the mutual covenants and agreements set forth herein and for good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged by each party hereto, the parties hereby agree as follows:

 

Article I

DEFINITIONS

 

As used herein, the following
terms shall have the following respective meanings:

 

“Adoption Agreement”
means an Adoption Agreement in the form attached hereto as Exhibit A.

 

“Affiliate”
means as to any Person, any other Person who directly, or indirectly through one or more intermediaries, controls, is controlled by or
is under common control with such Person. As used in this Agreement, the term “control,” including the correlative terms
 “controlling,” “controlled by” and “under common control with,” means possession, directly or indirectly,
of the power to direct or cause the direction of management or policies (whether through ownership of securities or any partnership or
other ownership interest, by contract or otherwise) of a Person. For the avoidance of doubt, for purposes of this Agreement, the Company,
on the one hand, and any Holder, on the other hand, shall not be considered Affiliates.

 

“Agreement”
has the meaning set forth in the introductory paragraph.

 

“Board”
means the board of directors of the Company.

 

     

     

    

 

“Business Day”
means any day other than a Saturday, Sunday, or other day on which commercial banks are authorized or required by applicable Law to be
closed in Denver, Colorado.

 

“Closing Date”
has the meaning set forth in the recitals.

 

“Commission”
means the Securities and Exchange Commission or any successor governmental agency.

 

“Common Stock”
means the common stock of the Company, par value $0.01 per share.

 

“Company”
has the meaning set forth in the introductory paragraph.

 

“Exchange Act”
means the Securities Exchange Act of 1934 or any successor federal statute, and the rules and regulations of the Commission thereunder,
all as the same shall be in effect at the time.

 

“Governmental Entity”
means any federal, state, local or municipal court, governmental, regulatory or administrative agency or commission or other governmental
authority or instrumentality, domestic or foreign (which entity has jurisdiction over the applicable Person).

 

“Holder”
means (a) each Initial Holder and (b) each other Person that becomes a party to this Agreement pursuant to Article V.

 

“Indemnified Party”
has the meaning set forth in Section 3.3.

 

“Indemnifying Party”
has the meaning set forth in Section 3.3.

 

“Internal Revenue
Code” means the Internal Revenue Code of 1986, as amended, or any successor federal statute, and the regulations of U.S. Treasury
thereunder, all as the same shall be in effect at the time.

 

“Law”
means any law, rule, regulation, ordinance, code, judgment, order, treaty, convention, governmental directive or other legally enforceable
requirement, U.S. or non-U.S., of any Governmental Entity, including common law.

 

“Losses”
has the meaning set forth in Section 3.1.

 

“Majority Holders”
means, at any time, the Holder or Holders of more than fifty percent (50%) of the Registrable Securities at such time.

 

“Permitted Transferee”
means, (a) with respect to any Holder other than an individual, any Affiliate of such Holder and, (b) with respect to any Holder
that is an individual, any (i) Relative of such individual, (ii) trust whose primary beneficiaries are one or more of such
individual and such individual’s Relatives, (iii) legal representative or guardian of such individual or any of such individual’s
Relatives if one has been appointed or (iv) Person controlled by any one or more of such individual and the Persons referred to
in clauses (i), (ii) or (iii) above; provided that any such Person referred to in clauses (i) through (iv) above
has delivered the Company a duly executed Adoption Agreement.

 

     2

     

    

 

“Person”
means any individual, corporation, partnership, limited liability company, firm, association, trust, government, governmental agency
or other entity, whether acting in an individual, fiduciary or other capacity.

  

“Proceeding”
means any actual or threatened claim (including a claim of a violation of applicable Law), cause of action, action, audit, demand, litigation,
suit, proceeding, investigation, citation, inquiry, originating application to a tribunal, arbitration or other proceeding at Law or
in equity or order or ruling, in each case whether civil, criminal, administrative, investigative or otherwise, whether in contract,
in tort or otherwise, and whether or not such claim, cause of action, action, audit, demand, litigation, suit, proceeding, investigation,
citation, inquiry, originating application to a tribunal, arbitration or other proceeding or order or ruling results in a formal civil
or criminal litigation or regulatory action.

 

“Purchase Agreement”
has the meaning set forth in the recitals.

 

“Registrable Securities”
means (a) the Shares and (b) any securities issued or issuable with respect to the Shares by way of distribution or in connection
with any reorganization or other recapitalization, merger, consolidation or otherwise; provided, however, that a Registrable Security
shall cease to be a Registrable Security when (i) such Registrable Security has been disposed of pursuant to an effective Registration
Statement, (ii)  such Registrable Security becomes eligible for resale without restriction and without volume limitations or
the need for current public information pursuant to Rule 144 (or any successor provision) under the Securities Act, or (iii) such
Registrable Security has been sold or disposed of in a transaction in which the Transferor’s rights under this Agreement are not
assigned to the Transferee pursuant to Article V; and provided, further, that any security that has ceased to be a
Registrable Security shall not thereafter become a Registrable Security and any security that is issued or distributed in respect of
securities that have ceased to be Registrable Securities shall not be a Registrable Security.

 

“Registration Expenses”
means (a) all expenses incurred by the Company in complying with Article II, including, without limitation, all registration
and filing fees, printing expenses, fees and disbursements of counsel and independent public accountants and independent petroleum engineers
for the Company, fees and expenses (including counsel fees) incurred in connection with complying with state securities or “blue
sky” laws, fees of the Financial Industry Regulatory Authority, Inc., and fees of transfer agents and registrars, and (b) reasonable
fees and disbursements of one legal counsel for the Holders; in each case, excluding any Selling Expenses.

 

“Registration Statement”
means any registration statement of the Company filed or to be filed with the Commission under the Securities Act, including the related
prospectus, amendments and supplements to such registration statement, and including pre- and post-effective amendments, and all exhibits
and all material incorporated by reference in such registration statement.

 

“Relative”
means, with respect to any individual: (a) such individual’s spouse, (b) any lineal descendant, parent, grandparent,
great grandparent or sibling of such individual or any lineal descendant of any such sibling (in each case whether by blood or legal
adoption), and (c) the spouse of an individual person described in clause (b) of this definition.

 

“Required Shelf
Filing Date” has the meaning set forth in Section 2.1(a).

 

     3

     

    

 

“Securities Act”
means the Securities Act of 1933, as amended, or any successor federal statute, and the rules and regulations of the Commission
thereunder, all as the same shall be in effect at the time. References to any rule under the Securities Act shall be deemed to refer
to any similar or successor rule or regulation.

 

“Selling Expenses”
means all (a) underwriting fees, discounts and selling commissions allocable to the sale of Registrable Securities and (b) transfer
taxes allocable to the sale of the Registrable Securities.

 

“Shares”
has the meaning set forth in the recitals.

 

“Shelf Registration
Statement” has the meaning set forth in Section 2.1(a).

 

“Suspension Period”
has the meaning set forth in Section 2.2.

 

“Transfer”
means any offer, sale, pledge, encumbrance, hypothecation, entry into any contract to sell, grant of an option to purchase, short sale,
assignment, transfer, exchange, gift, bequest or other disposition, direct or indirect, in whole or in part, by operation of law or otherwise.
 “Transfer,” when used as a verb, and “Transferee” has a correlative meaning.

 

“WKSI”
means a well-known seasoned issuer (as defined in Rule 405 under the Securities Act).

 

Article II

REGISTRATION RIGHTS

 

Section 2.1            Shelf
Registration.

 

(a)            The
Company shall prepare and file, as soon as reasonably practicable after the Closing Date but in no event later than [●], 20221
(such date, the “Required Shelf Filing Date”) a “shelf” registration statement under the
Securities Act to permit the resale of all of the Registrable Securities by the Holders from time to time as permitted by Rule 415
under the Securities Act (or any similar provision adopted by the Commission then in effect) (such Registration Statement and any other
Registration Statement contemplated by Section 2.1(b) or Section 2.1(c), the “Shelf Registration
Statement”), and the Company shall use its commercially reasonable efforts to cause such Registration Statement to become or
be declared effective as soon as practicable after the filing thereof or, if the Company is then a WKSI, upon the filing thereof by filing
such Registration Statement as an automatic shelf registration statement that becomes effective upon filing with the Commission in accordance
with Rule 462(e) under the Securities Act. Promptly following the effective date of the Shelf Registration Statement, the Company
shall notify each Holder of the effectiveness of such Registration Statement.

 

 

1 By attaching this form of Registration Rights Agreement
to the Purchase Agreement as Exhibit D thereto, the Company and the Seller (as defined in the Purchase Agreement) agree that this date
will be filled in prior to the execution and delivery of this Agreement on the Closing Date and will be the later of (i) the third Business
Day after the Closing Date and (ii) the earlier of (1) the date by which the Company reasonably determines and advises the Seller that
the Company will be able to file with the Commission all financial statements required to be included or incorporated by reference in
the Shelf Registration Statement when initially filed with the Commission and (2) March 15, 2022.

 

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(b)            The
Shelf Registration Statement shall be on Form S-3 or, if Form S-3 is not then available to the Company, on Form S-1 or
such other form of registration statement as is then available to effect a registration for resale of the Registrable Securities pursuant
to Rule 415 under the Securities Act (or any successor or similar rule adopted by the Commission then in effect); provided,
however, that if the Company has filed the Shelf Registration Statement on Form S-1 and subsequently becomes eligible to use
Form S-3 or any equivalent or successor form, the Company shall (i) file a post-effective amendment to the Shelf Registration
Statement converting such Registration Statement on Form S-1 to a Registration Statement on Form S-3 or any equivalent or successor
form or (ii) file a new Shelf Registration Statement on Form S-3 or any equivalent or successor form, upon the effectiveness
of which the Company may withdraw the Shelf Registration Statement on Form S-1. The Shelf Registration Statement shall contain a
prospectus in such form as to permit the Holders to sell the Registrable Securities pursuant to Rule 415 under the Securities Act
(or any successor or similar rule adopted by the Commission then in effect) at any time beginning on the effective date for such
Registration Statement. The Shelf Registration Statement shall provide for the distribution or resale pursuant to any method or combination
of methods legally available to the Holders and reasonably requested in writing by any Holder in connection with furnishing any information
provided pursuant to Section 2.4.

 

(c)            The
Company shall use its commercially reasonable efforts to cause the Shelf Registration Statement to remain effective, and to be supplemented
and amended as promptly as practicable to the extent necessary to ensure that the Shelf Registration Statement is available or, if not
available, that another Registration Statement is available, for the resale of all the Registrable Securities by the Holders until all
of the Registrable Securities have ceased to be Registrable Securities or the earlier termination of this Agreement as to all Holders
pursuant to Section 6.1.

 

(d)            When
effective, the Shelf Registration Statement (including the documents incorporated therein by reference) will comply as to form in all
material respects with all applicable requirements of the Securities Act and the Exchange Act and will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading
(in the case of any prospectus contained in the Shelf Registration Statement, in the light of the circumstances under which such statements
are made).

 

Section 2.2            Delay
and Suspension Rights. Notwithstanding any other provision of this Agreement, the Company
may (i) delay filing or effectiveness of a Shelf Registration Statement (or any amendment thereto), other than the filing or effectiveness
of the Shelf Registration Statement required to be filed by the Required Shelf Filing Date pursuant to Section 2.1(a), or
(ii) suspend the Holders’ use of any prospectus that is a part of a Shelf Registration Statement upon written notice to each
Holder (provided that in no event shall such notice contain any material non-public information regarding the Company) (in which event
the Holders shall discontinue sales of Registrable Securities pursuant to such Registration Statement but may settle any then-contracted
sales of Registrable Securities), in each case for a period of up to 60 consecutive days, if the Board determines (A) that such
delay or suspension is in the best interest of the Company and its stockholders generally due to a pending financing or other transaction
involving the Company, including a proposed sale of Common Stock pursuant to a Registration Statement, in each case, that would be materially
and adversely affected by required disclosure of such transaction in such prospectus, (B) that such registration would render the
Company unable to comply with applicable securities Laws or (C) that such registration would require disclosure of material information
that the Company has a bona fide business purpose for preserving as confidential (any such period, a “Suspension Period”);
provided, however, that in no event shall any Suspension Periods collectively exceed an aggregate of 120 days in any 12-month
period.

 

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Section 2.3            Registration
Procedures.

 

(a)            In
connection with its obligations under this Article II, the Company will:

 

(i)            promptly
prepare and file with the Commission such amendments and supplements to such Registration Statement and the prospectus used in connection
therewith as may be necessary to keep such Registration Statement effective and to comply with the provisions of the Securities Act with
respect to the disposition of the Registrable Securities covered by such Registration Statement until all of such Registrable Securities
have ceased to be Registrable Securities;

 

(ii)            furnish
to each Holder, without charge, such number of conformed copies of such Registration Statement and of each such amendment and supplement
thereto (in each case including without limitation all exhibits), such number of copies of the prospectus contained in such Registration
Statement (including without limitation each preliminary prospectus and any summary prospectus) and any other prospectus filed under
Rule 424 under the Securities Act, in conformity with the requirements of the Securities Act, and such other documents, as such
Holder may reasonably request;

 

(iii)            if
applicable, use commercially reasonable efforts to register or qualify all Registrable Securities and other securities covered by such
Registration Statement under such other securities or “blue sky” laws of such jurisdictions as a Holder shall reasonably
request, to keep such registration or qualification in effect for so long as such Registration Statement remains in effect, and to take
any other action which may be reasonably necessary or advisable to enable the Holders to consummate the disposition in such jurisdictions
of the securities owned by the Holders, except that the Company shall not for any such purpose be required to qualify generally to do
business as a foreign corporation in any jurisdiction wherein it would not but for the requirements of this clause (iii) be obligated
to be so qualified or to consent to general service of process in any such jurisdiction;

 

(iv)            promptly
notify the Holders, at any time when a prospectus relating thereto is required to be delivered under the Securities Act, upon discovery
that, or upon the happening of any event as a result of which, the prospectus included in such Registration Statement, as then in effect,
includes an untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary to make
the statements therein not misleading in the light of the circumstances under which they were made, and at the request of the Holders
promptly prepare and file or furnish to the Holders a reasonable number of copies of a supplement or post-effective amendment to the
Registration Statement or a supplement to the related prospectus or any document incorporated or deemed to be incorporated therein by
reference, or file any other required document as may be necessary so that, as thereafter delivered to the purchasers of such securities,
such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading in the light of the circumstances under which they were made;

 

     6

     

    

 

(v)            otherwise
comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement, which earnings statement shall satisfy the provisions of Section 11(a) of the Securities
Act;

 

(vi)            provide
and cause to be maintained a transfer agent and registrar for all Registrable Securities covered by such Registration Statement from
and after a date not later than the effective date of such Registration Statement;

 

(vii)            use
its commercially reasonable efforts to prevent the issuance of any order suspending the effectiveness of the Registration Statement,
and, if any such order suspending the effectiveness of such Registration Statement is issued, shall promptly use its commercially reasonable
efforts to obtain the withdrawal of such order at the earliest possible moment;

 

(viii)            promptly
notify the Holders (i) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement
or the initiation or threat of any proceedings for that purpose, (ii) of any delisting of the Common Stock by any national securities
exchange or market on which the Common Stock are then listed or quoted, and (iii) of the receipt by the Company of any notification
with respect to the suspension of the qualification of any Registrable Securities for sale under the securities or “blue sky”
laws of any jurisdiction or the initiation of any proceeding for such purpose; and

 

(ix)            cause
all Registrable Securities covered by such Registration Statement to be listed on any securities exchange on which the Common Stock is
then listed.

 

(b)            Each
Holder agrees by acquisition of such Registrable Securities that upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 2.3(a)(iv), such Holder will forthwith discontinue such Holder’s disposition
of Registrable Securities pursuant to the Registration Statement until such Holder’s receipt of the copies of the supplemented
or amended prospectus contemplated by Section 2.3(a)(iv) as filed with the Commission or until it is advised in writing
by the Company that the use of such Registration Statement may be resumed, and, if so directed by the Company, will deliver to the Company
(at the Company’s expense) all copies, other than permanent file copies, then in such Holder’s possession of the prospectus
relating to such Registrable Securities current at the time of receipt of such notice. The Company may provide appropriate stop orders
to enforce the provisions of this Section 2.3(b).

 

     7

     

    

 

Section 2.4            Cooperation
by Holder. The Company shall have no obligation to include Registrable Securities in any
Registration Statement if any Holder has failed to timely furnish such information as the Company may, from time to time, reasonably
request in writing regarding such Holder and the distribution of such Registrable Securities that the Company determines, after consultation
with its counsel, is reasonably required in order for any registration statement or prospectus supplement, as applicable, to comply with
the Securities Act.

 

Section 2.5            Expenses.
The Company shall be responsible for all Registration Expenses incident to its performance of or compliance with its obligations under
this Article II. Each Holder shall pay all Selling Expenses in connection with any sale of such Holder’s Registrable
Securities hereunder.

 

Section 2.6            No
Inconsistent Agreements; Additional Rights. The Company is not currently a party to and
shall not hereafter enter into any agreement with respect to its securities that is inconsistent with or that in any way violates rights
granted to the Holders by this Agreement without the prior written consent of the Majority Holders.

 

Article III

INDEMNIFICATION AND CONTRIBUTION

 

Section 3.1            Indemnification
by the Company. The Company will indemnify and hold harmless each Holder, its officers and
directors and each Person (if any) that controls such Holder within the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act from and against any and all losses, claims, damages, liabilities, costs (including reasonable costs of preparation
and reasonable attorneys’ fees and any legal or other fees or expenses incurred by such Person in connection with any investigation
or Proceeding), expenses, judgments, fines, penalties, charges and amounts paid in settlement (“Losses”) as incurred,
caused by, arising out of or based upon, resulting from or related to any untrue statement or alleged untrue statement of a material
fact contained in any Registration Statement or prospectus relating to the Registrable Securities (as amended or supplemented if the
Company shall have furnished any amendments or supplements thereto) or any preliminary prospectus, or based on any omission or alleged
omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading (in
the case of any prospectus, in the light of the circumstances under which such statement is made), provided, however, that
such indemnity shall not apply to that portion of such Losses caused by, or arising out of, any untrue statement, or alleged untrue statement
or any such omission or alleged omission, to the extent such statement or omission was made in reliance upon and in conformity with information
furnished in writing to the Company by or on behalf of the Holder expressly for use therein.

 

Section 3.2            Indemnification
by the Holders. Each Holder agrees to indemnify and hold harmless the Company, its officers
and directors and each Person (if any) that controls the Company within the meaning of either Section 15 of the Securities Act or
Section 20 of the Exchange Act from and against any and all Losses caused by, arising out of, resulting from or related to any untrue
statement or alleged untrue statement of a material fact contained in any Registration Statement or prospectus relating to Registrable
Securities (as amended or supplemented if the Company shall have furnished any amendments or supplements thereto) or any preliminary
prospectus, or any omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the
statements therein not misleading (in the case of any prospectus, in the light of the circumstances under which such statement is made),
only to the extent such statement or omission was made in reliance upon and in conformity with information furnished in writing by or
on behalf of such Holder expressly for use in such Registration Statement or prospectus relating to the Registrable Securities, or any
amendment or supplement thereto, or any preliminary prospectus.

 

     8

     

    

 

Section 3.3            Indemnification
Procedures. In case any Proceeding (including any governmental investigation) shall be instituted
involving any Person in respect of which indemnity may be sought pursuant to Section 3.1 or Section 3.2, such
Person (the “Indemnified Party”) shall promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Party”) in writing (provided that the failure of the Indemnified Party to give notice as provided herein shall not relieve
the Indemnifying Party of its obligations under this Article III, except to the extent the Indemnifying Party is actually
prejudiced by such failure to give notice), and the Indemnifying Party shall be entitled to participate in such Proceeding and, unless
in the reasonable opinion of outside counsel to the Indemnified Party a conflict of interest between the Indemnified Party and Indemnifying
Party may exist in respect of such claim, to assume the defense thereof jointly with any other Indemnifying Party similarly notified,
to the extent that it chooses, with counsel reasonably satisfactory to such Indemnified Party, and after notice from the Indemnifying
Party to such Indemnified Party that it so chooses, the Indemnifying Party shall not be liable to such Indemnified Party for any legal
or other expenses subsequently incurred by such Indemnified Party in connection with the defense thereof other than reasonable costs
of investigation; provided, however, that (i) if the Indemnifying Party fails to assume the defense or employ counsel
reasonably satisfactory to the Indemnified Party, (ii) if such Indemnified Party who is a defendant in any action or Proceeding
which is also brought against the Indemnifying Party reasonably shall have concluded that there may be one or more legal defenses available
to such Indemnified Party which are not available to the Indemnifying Party or (iii) if representation of both parties by the same
counsel is otherwise inappropriate under applicable standards of professional conduct then, in any such case, the Indemnified Party shall
have the right to assume or continue its own defense as set forth above (but with no more than one firm of counsel for all Indemnified
Parties in each jurisdiction, except to the extent any Indemnified Party or Indemnified Parties reasonably shall have concluded that
there may be legal defenses available to such party or parties which are not available to the other Indemnified Parties or to the extent
representation of all Indemnified Parties by the same counsel is otherwise inappropriate under applicable standards of professional conduct)
and the Indemnifying Party shall be liable for any expenses therefor. No Indemnifying Party shall, without the written consent of the
Indemnified Party, effect the settlement or compromise of, or consent to the entry of any judgment with respect to, any pending or threatened
action or claim in respect of which indemnification or contribution may be sought hereunder (whether or not the Indemnified Party is
an actual or potential party to such action or claim) unless such settlement, compromise or judgment (A) includes an unconditional
release of the Indemnified Party from all liability arising out of such action or claim and (B) does not include a statement as
to, or an admission of, fault, culpability or a failure to act, by or on behalf of any Indemnified Party.

 

Section 3.4            Contribution.

 

(a)            If
the indemnification provided for in this Article III is unavailable to an Indemnified Party in respect of any Losses in respect
of which indemnity is to be provided hereunder, then each Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall to
the fullest extent permitted by Law contribute to the amount paid or payable by such Indemnified Party as a result of such Losses in
such proportion as is appropriate to reflect the relative fault of such party in connection with the statements or omissions that resulted
in such Losses, as well as any other relevant equitable considerations. The relative fault of the Company (on the one hand) and any Holder
(on the other hand) shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material
fact or the omission or alleged omission to state a material fact relates to information supplied by such party and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission.

 

     9

     

    

 

(b)            The
Company and each Holder agree that it would not be just and equitable if contribution pursuant to this Article III were determined
by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to in
Section 3.4(a). The amount paid or payable by an Indemnified Party as a result of the Losses, claims, damages or liabilities
referred to in Section 3.4(a) shall be deemed to include, subject to the limitations set forth above, any legal or other
expenses reasonably incurred by such Indemnified Party in connection with investigating or defending any such action or claim. Notwithstanding
the provisions of this Article III, such Holder shall not be liable for indemnification or contribution pursuant to this
Article III for any amount in excess of the net proceeds of the offering received by such Holder, less the amount of any
damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged
omission. No person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall
be entitled to contribution from any Person who was not guilty of such fraudulent misrepresentation.

 

Article IV

RULE 144; ASSISTANCE WITH TRANSFERS

 

(a)           With
a view to making available the benefits of certain rules and regulations of the Commission that may permit the resale of the Registrable
Securities without registration, so long as a Holder owns any Registrable Securities, the Company agrees to use its commercially reasonable
efforts to:

 

(i)            make
and keep public information regarding the Company available, as those terms are understood and defined in Rule 144 under the Securities
Act, at all times from and after the date hereof;

 

(ii)            file
with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange
Act at all times from and after the date hereof; and

 

(iii)            furnish
(i) to the extent accurate, forthwith upon request, a written statement of the Company that it has complied with the reporting requirements
of Rule 144 under the Securities Act and (ii) unless otherwise available via the Commission’s EDGAR filing system, to
any Holder forthwith upon request a copy of the most recent annual or quarterly report of the Company, and such other reports and documents
so filed as such Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing such Holder
to sell any such securities without registration.

 

     10

     

    

 

(b)            In
connection with any sale of Registrable Securities by any Holder, including any sale pursuant to Rule 144 or other exemption that
may at any time permit a Holder of Registrable Securities to sell securities of the Company to the public without registration, the Company
shall, to the extent such sale is allowed by applicable law, rules or regulations, take any and all actions reasonably requested
by such Holder in order to permit or facilitate such sale, including, without limitation, at the sole expense of the Company, by (i) issuing
such directions to the Company’s transfer agent, registrar or depositary, as applicable, as are reasonably required by the same,
(ii) delivering such opinions to the Company’s transfer agent, registrar or depositary as are customary for a transaction
of this type and are reasonably requested by the same, and (iii) taking or causing to be taken such other actions as are reasonably
necessary (in each case on a timely basis) in order to cause any legends, notations or similar designations restricting transferability
of the Registrable Securities held by such Holder to be removed and to rescind any transfer restrictions with respect to such Registrable
Securities; provided, however, that such Holder shall deliver to the Company, in form and substance satisfactory to the Company, representation
letters regarding such Holder’s compliance with such rules and regulations, as may be applicable. In addition, the Company,
at its sole expense, shall use commercially reasonable efforts to remove any restrictive legend on any shares of Common Stock that are
Registrable Securities upon request by the Holder if such shares of Common Stock are sold pursuant to an effective registration statement.

 

Article V 

TRANSFER OR ASSIGNMENT OF REGISTRATION RIGHTS

 

The rights to cause the Company
to register Registrable Securities and other rights under this Agreement may be transferred or assigned by any Holder to one or more
Transferees of Registrable Securities if (a) such Transferee is (i) a Permitted Transferee of such Holder or (ii) acquiring
(whether from one or multiple Holders) at least $10 million of Registrable Securities as determined by reference to the volume weighted
average price for such Registrable Securities on any securities exchange or market on which the Common Stock is then listed or quoted
for the five trading days immediately preceding the applicable determination date and (b) such Transferee has delivered to the Company
a duly executed Adoption Agreement.

 

Article VI

MISCELLANEOUS

 

Section 6.1           Termination.
This Agreement shall terminate upon the date that all Registrable Securities cease to be Registrable Securities; provided, however,
that Article III, Article IV(b) and this Article VI (other than Section 6.4)
shall survive any termination hereof.

 

Section 6.2            Severability
and Construction. Each party hereto agrees that, should any court or other competent authority
hold any provision of this Agreement or part hereof to be invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such other term
or provision in any other jurisdiction. Upon such determination that any term or other provision is invalid, illegal or unenforceable,
the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties hereto as
closely as possible in a mutually acceptable manner in order that the transactions contemplated by the Purchase Agreement be consummated
as originally contemplated to the greatest extent possible. Except as otherwise contemplated by this Agreement, in response to an order
from a court or other competent authority for any party hereto to take any action inconsistent herewith or not to take an action consistent
herewith or required hereby, to the extent that a party hereto took an action inconsistent with this Agreement or failed to take action
consistent with this Agreement or required by this Agreement pursuant to such order, such party hereto shall not incur any liability
or obligation unless such party hereto did not in good faith seek to resist or object to the imposition or entering of such order.

 

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Section 6.3            Governing
Law; Submission to Jurisdiction; Selection of Forum; Waiver of Jury Trial.

 

(a)            THIS
AGREEMENT, AND ALL CLAIMS OR CAUSES OF ACTION (WHETHER IN CONTRACT OR TORT) THAT MAY BE BASED UPON, ARISE OUT OF RELATE TO THIS
AGREEMENT, OR THE NEGOTIATION, EXECUTION OR PERFORMANCE OF THIS AGREEMENT, SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF DELAWARE, WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF.

 

(b)           THE
PARTIES HERETO IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURT OF CHANCERY OF THE STATE OF DELAWARE OR, IF THE COURT OF CHANCERY
OF THE STATE OF DELAWARE OR THE DELAWARE SUPREME COURT DETERMINES THAT, NOTWITHSTANDING SECTION 111 OF THE GENERAL CORPORATION LAW
OF THE STATE OF DELAWARE, THE COURT OF CHANCERY DOES NOT HAVE OR SHOULD NOT EXERCISE SUBJECT MATTER JURISDICTION OVER SUCH MATTER, THE
SUPERIOR COURT OF THE STATE OF DELAWARE AND THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA LOCATED IN THE STATE OF DELAWARE SOLELY
IN CONNECTION WITH ANY DISPUTE THAT ARISES IN RESPECT OF THE INTERPRETATION AND ENFORCEMENT OF THE PROVISIONS OF THIS AGREEMENT AND THE
DOCUMENTS REFERRED TO IN THIS AGREEMENT OR IN RESPECT OF THE TRANSACTIONS CONTEMPLATED BY THE PURCHASE AGREEMENT, AND HEREBY WAIVE, AND
AGREE NOT TO ASSERT, AS A DEFENSE IN ANY ACTION, SUIT OR PROCEEDING FOR INTERPRETATION OR ENFORCEMENT HEREOF OR ANY SUCH DOCUMENT THAT
IT IS NOT SUBJECT THERETO OR THAT SUCH ACTION, SUIT OR PROCEEDING MAY NOT BE BROUGHT OR IS NOT MAINTAINABLE IN SAID COURTS OR THAT
VENUE THEREOF MAY NOT BE APPROPRIATE OR THAT THIS AGREEMENT OR ANY SUCH DOCUMENT MAY NOT BE ENFORCED IN OR BY SUCH COURTS,
AND THE PARTIES HERETO IRREVOCABLY AGREE THAT ALL CLAIMS WITH RESPECT TO SUCH ACTION, SUIT OR PROCEEDING SHALL BE HEARD AND DETERMINED
EXCLUSIVELY BY SUCH DELAWARE STATE OR FEDERAL COURT. THE PARTIES HEREBY CONSENT TO AND GRANT ANY SUCH COURT JURISDICTION OVER THE PERSON
OF SUCH PARTIES AND OVER THE SUBJECT MATTER OF SUCH DISPUTE AND AGREE THAT MAILING OF PROCESS OR OTHER PAPERS IN CONNECTION WITH SUCH
ACTION, SUIT OR PROCEEDING IN THE MANNER PROVIDED IN Section 6.6 OR IN SUCH
OTHER MANNER AS MAY BE PERMITTED BY LAW SHALL BE VALID AND SUFFICIENT SERVICE THEREOF.

 

     12

     

    

 

(c)            EACH
PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY MAY HAVE TO A TRIAL BY
JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
BY THIS AGREEMENT. EACH PARTY HERETO CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY
HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING
WAIVER; (II) SUCH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THE FOREGOING WAIVER; (III) SUCH PARTY MAKES THE
FOREGOING WAIVER VOLUNTARILY AND (IV) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL
WAIVER AND CERTIFICATIONS IN THIS Section 6.3.

 

Section 6.4            Adjustments
Affecting Registrable Securities. The provisions of this Agreement shall apply to any and
all shares of capital stock of the Company or any successor or assignee of the Company (whether by merger, consolidation, sale of assets
or otherwise) which may be issued in respect of, in exchange for or in substitution for the Shares or other Registrable Securities, by
reason of any stock dividend, split, reverse split, combination, recapitalization, reclassification, merger, consolidation or otherwise
in such a manner and with such appropriate adjustments as to reflect the intent and meaning of the provisions hereof and so that the
rights, privileges, duties and obligations hereunder shall continue with respect to the capital stock of the Company as so changed.

 

Section 6.5            Binding
Effects; Benefits of Agreement. This Agreement shall be binding upon and inure to the benefit
of the Company and its successors and assigns and each Holder and its successors and assigns. Except as provided in Article V,
neither this Agreement nor any of the rights, benefits or obligations hereunder may be assigned or transferred, by operation of law or
otherwise, by such Holder without the prior written consent of the Company.

 

Section 6.6            Notices.
All notices hereunder shall be deemed given if in writing and delivered, by electronic mail, courier, or registered or certified mail
(return receipt requested), to the following addresses (or at such other addresses as shall be specified by like notice):

 

(a)           If
to the Company, to:

 

Civitas Resources, Inc. 

410 17th St., Suite 1400 

Denver, CO 80202 

Attention: Skip Marter, General Counsel 

E mail: smarter@civiresources.com

 

with a copy to:

 

Kirkland & Ellis LLP 

609 Main St. #4700 

Houston, TX 77002 

Attention: Julian J. Seiguer, P.C. 

Bryan D. Flannery

 

     13

     

    

 

(b)            If
to a Holder, to the address or electronic mail addresses of such Holder as it appears on such Holder’s signature page attached
hereto or such other address as may be designated in writing by such Holder;

 

or to such other address as the party to whom
notice is to be given may have furnished to such other party in writing in accordance herewith. Any notice given by delivery, mail, or
courier shall be effective when received.

 

Section 6.7            Modification;
Waiver. This Agreement may be amended, modified or supplemented only by a written instrument
duly executed by the Company and the Majority Holders. No course of dealing between the Company and the Holders or any delay in exercising
any rights hereunder will operate as a waiver of any rights of any party to this Agreement. The failure of any party to enforce any of
the provisions of this Agreement will in no way be construed as a waiver of such provisions and will not affect the right of such party
thereafter to enforce each and every provision of this Agreement in accordance with its terms.

 

Section 6.8            Entire
Agreement. Except as otherwise explicitly provided herein, this Agreement (together with
the Purchase Agreement), and any other documents and instruments executed pursuant hereto or thereto) constitutes the entire agreement
among the parties hereto with respect to the subject matter hereof and supersedes all prior agreements, oral or written, among the parties
hereto with respect thereto.

 

Section 6.9            Counterparts.
This Agreement may be executed and delivered in any number of counterparts and by way of electronic signature and delivery, each such
counterpart, when executed and delivered, shall be deemed an original, and all of which together shall constitute the same agreement.
Except as expressly provided in this Agreement, each individual executing this Agreement on behalf of a party hereto has been duly authorized
and empowered to execute and deliver this Agreement on behalf of said party hereto.

 

Section 6.10          Further
Assurances. Subject to the other terms of this Agreement, the parties hereto agree to execute
and deliver such other instruments and perform such acts, in addition to the matters herein specified, as may be reasonably appropriate
or necessary, from time to time, to effectuate the transactions contemplated by the Purchase Agreement, as applicable.

 

[signature page follows]

 

     14

     

    

 

 

IN WITNESS WHEREOF, each of
the parties hereto has caused this Agreement to be executed by its undersigned duly authorized representative as of the date first written
above.

 

	 	THE COMPANY:
	 	 
	 	CIVITAS RESOURCES, INC.
	 	 	 
	 	By:	                             
	 	Name:	[●]
	 	Title:	[●]

 

Signature
Page To Registration Rights Agreement

 

     

     

    

 

	 	HOLDER:2
	 	 	 
	 	[BISON OIL & GAS PARTNERS II, LLC]
	 	 	 
		By:	[Bison Oil & Gas, LLC, the [●]]
	 	 	 
	 	By:	/s/
[●]
	 	Name:	[●]
	 	Title:	[●]

 

Notices:

 

c/o [Bison Oil & Gas Partners
II, LLC

518 17th Street, Suite 1800 

Denver, Colorado 80202]

		Attention:	[Austin Akers]
		E-mail:	[aakers@bisonog.com]

 

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

 

Bracewell LLP 

711 Louisiana Street, Suite 2300

Houston, Texas 77002

		Attention:	Austin Lee

Ben Martin
		E-mail:	austin.lee@bracewell.com

ben.martin@bracewell.com

 

[Carnelian Energy Capital Management, L.P.

2229 San Felipe Street, Suite 1450 

Houston, Texas 77019

		Attn:	Matthew Savage

Matt Kelly
		Email:	matts@carnelianec.com

matt@carnelianec.com]

 

 

2        Note
to Bison: Please update bracketed items.

 

Signature Page To Registration Rights Agreement

 

     

     

    

 

EXHIBIT A

 

ADOPTION AGREEMENT

 

This Adoption Agreement (“Adoption
Agreement”) is executed by the undersigned transferee (“Transferee”) pursuant to the terms of the Registration
Rights Agreement, dated as of [●], among Civitas Resources, Inc., a Delaware corporation (the “Company”),
and [Bison Holders] (together with any Permitted Transferee, each, a “Holder” and collectively, the “Holders”)
(as amended from time to time, the “Registration Rights Agreement”). Terms used and not otherwise defined in this Adoption
Agreement have the meanings set forth in the Registration Rights Agreement.

 

By the execution of this Adoption
Agreement, the Transferee agrees as follows:

 

1.            Acknowledgement.
Transferee acknowledges that Transferee is acquiring certain shares of Common Stock of the Company, subject to the terms and conditions
of the Registration Rights Agreement among the Company and the Holders.

 

2.            Agreement.
Transferee (i) agrees that the shares of Common Stock of the Company acquired by Transferee shall be bound by and subject to the
terms of the Registration Rights Agreement, pursuant to the terms thereof, and (ii) hereby adopts the Registration Rights Agreement
with the same force and effect as if he, she or it were originally a party thereto.

 

3.            Notice.
Any notice required as permitted by the Registration Rights Agreement shall be given to Transferee at the address listed beside Transferee’s
signature below.

 

4.            Joinder.
The spouse of the undersigned Transferee, if applicable, executes this Adoption Agreement to acknowledge its fairness and that it is in
such spouse’s best interest, and to bind such spouse’s community interest, if any, in the shares of Common Stock and other
securities referred to above and in the Registration Rights Agreement, to the terms of the Registration Rights Agreement.

 

	Signature:	 
	 	 
	 	 
	 	 
	 	 
	Address:	 
	 	 
	 	 
	 	 
	 	 
	Contact Person: 	 	 
	 	 
	Telephone No:	 	 
	 	 
	Email:Exhibit
10.2 

 

SEVERANCE, RELEASE AND CONSULTING AGREEMENT

 

This Severance, Release
and Consulting Agreement (“Agreement”) is made between (i) Eric T. Greager (“Employee”) and
(ii) Civitas Resources, Inc. (the “Company”). Employee and the Company are referred to individually as a
 “Party” and collectively as the “Parties.”

 

RECITALS

 

WHEREAS, Employee’s
employment with the Company ended effective January 31, 2022 (the “Separation Date”);

 

WHEREAS, the Parties wish
to resolve fully and finally potential disputes regarding Employee’s employment with the Company; and

 

WHEREAS, in order to accomplish
this end, the Parties are willing to enter into this Agreement.

 

NOW, THEREFORE, in consideration
of the mutual promises and undertakings contained herein, the Parties to this Agreement agree as follows:

 

TERMS

 

1.            Effective
Date. This Agreement shall become effective on the eighth day after Employee signs and delivers to the Company this Agreement (the
 “Effective Date”), so long as Employee does not revoke this Agreement as provided below. Regardless of whether Employee signs
this Agreement, to the extent Employee participated in the Company’s group health plans, coverage will cease on January 31,
2022. At that time, if Employee participated in the Company’s group health plans, Employee will be eligible to continue Employee’s
group health plan benefits for Employee and Employee’s eligible dependents, subject to the terms and conditions of the Company’s
benefit plans, federal law, including the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), and,
as applicable, state insurance laws.

 

2.            Consideration.

 

a.            Employee
shall receive from the Company his “Accrued Obligations,” which consist of (i) payment of all earned but unpaid
base salary through the Separation Date prorated for any partial period of employment; (ii) payment of Employee’s annual cash
bonus, determined in accordance with the Company’s Short Term Incentive Plan (“STIP”) for calendar year 2021; (iii) payment,
in accordance with the terms of the applicable benefit plan of the Company or its affiliates or to the extent required by law, of any
benefits to which such Eligible Individual has a vested entitlement as of the Separation Date; (iv) payment of any accrued unused
vacation; and (v) payment of any approved but not yet reimbursed business expenses incurred in accordance with applicable policies
of the Company and its affiliates. Employee hereby acknowledges that his annual cash bonus under the 2021 STIP shall be equal to his weighted
average base salary for the period beginning January 1, 2021 and ending October 31, 2021, prorated downward by applying the
fraction of 304/365, multiplied by the Company’s 2021 STIP performance percentage (stated as a percentage of target-level performance)
as determined by the Compensation Committee of the Board of Directors of the Company (the “Board”). Employee further acknowledges
that the Compensation Committee has not yet determined the Company’s 2021 STIP performance percentage and that he will not be paid
his annual cash bonus under the 2021 STIP until no later than five (5) business days following the date such determination is made;
the Company agrees that such determination shall be made no later than February 28, 2022.

 

b.            After
the Effective Date, and on the express condition that Employee has not revoked this Agreement, the Company will provide Employee with
the payments, benefits, and other consideration set forth in Appendix A to this Agreement.

 

c.            The
Company shall report and withhold on each payment and benefit set forth in Appendix A in conformance with applicable tax laws.

 

    

     

    

 

3.            General
Release.

 

a.            Employee,
on Employee’s own behalf and on behalf of Employee’s heirs, agents, representatives, attorneys, assigns, executors and/or
anyone acting on Employee’s behalf, and in consideration of the promises, assurances, and covenants set forth in the Eighth Amended
and Restated Executive Change In Control And Severance Plan, as in effect on of January 21, 2022 (the “Plan”), under
which Employee is an Eligible Individual, but to which Employee is not automatically entitled, including, but not limited to, the payment
of any severance thereunder, hereby fully releases the Company and its successors or affiliates, its parents, subsidiaries, officers,
shareholders, partners, members, individual employees, agents, representatives, directors, employees, attorneys, successors, and anyone
acting on its behalf, known or unknown, from all claims and causes of action by reason of any injuries and/or damages or losses, known
or unknown, foreseen or unforeseen, patent or latent which Employee has sustained or which may be sustained as a result of any facts and
circumstances arising out of or in any way related to Employee’s employment by the Company or the termination of that employment,
and to any other disputes, claims, disagreements, or controversies between Employee and the Company up to and including the date this
Agreement is signed by Employee. Employee’s release includes, but is not limited to, any contract benefits, claims for quantum meruit,
claims for wages, bonuses, employment benefits, moving expenses, stock options, profits units, or damages of any kind whatsoever, arising
out of any contracts, express or implied, any covenant of good faith and fair dealing, express or implied, any theory of unlawful discharge,
torts and related damages (including, but not limited to, emotional distress, loss of consortium, and defamation) any legal restriction
on the Company’s right to terminate Employee’s employment and/or services, or any federal, state or other governmental statute
or ordinance, including, without limitation, Title VII of the Civil Rights Act of 1964 (as amended), the federal Age Discrimination in
Employment Act of 1967 (29 U.S.C. § 21, et seq.) (as amended) (“ADEA”), the federal Americans with Disabilities Act of
1990, any state laws concerning discrimination or harassment including the Fair Employment and Housing Act, or any other legal limitation
on contractual or employment relationships, and any and all claims for any loss, cost, damage, or expense with respect to Employee’s
liability for taxes, penalties, interest or additions to tax on or with respect to any amount received from the Company or otherwise includible
in Employee’s gross income through the Separation Date, including, but not limited to, any liability for taxes, penalties, interest
or additions to tax arising from the failure of any other employment, severance, profit sharing, bonus, equity incentive or other compensatory
plan to which Employee and the Company are or were parties, to comply with, or to be operated in compliance with the Internal Revenue
Code of 1986, as amended, including, but not limited to, Section 409A thereof, or any provision of state or local income tax law;
provided, however, that notwithstanding the foregoing, the release set forth in this Section shall not extend to: (a) any
vested or portability rights under any pension, retirement, profit sharing or similar plan or employee welfare benefit plan under the
Employee Retirement Income Security Act of 1974, as amended; (b) Employee’s rights, if any, to indemnification or defense under
the Company’s certificate of incorporation, bylaws and/or policy or procedure, this Agreement or any indemnification agreement with
Employee or under any insurance contract, in connection with Employee’s acts or omissions within the course and scope of Employee’s
employment with the Company; (c) claims that are unwaivable as a matter of law; or (d) claims for breach of this Agreement.
This Agreement and its Appendix A set forth the benefits, payments and obligations to which Employee is entitled under the Plan if, and
only if, this Agreement is executed, delivered and become irrevocable by no later than April 1, 2022, which is 60 days after Employee’s
Separation Date. Employee acknowledges and agrees that he is not entitled to any other termination or severance benefits whether under
the Plan or otherwise.

 

    -2-

     

    

  

b.            Employee
acknowledges that Employee is knowingly and voluntarily waiving and releasing any rights Employee may have under the ADEA. Employee also
acknowledges that the consideration given for the waiver and release hereunder is in addition to anything of value to which Employee is
already entitled. Employee further acknowledges that Employee has been advised by this writing, as required by the ADEA, that: (a) Employee’s
waiver and release hereunder do not apply to any rights or claims that may arise after the execution date of this Agreement; (b) Employee
has been advised hereby that Employee has the right to consult with an attorney prior to executing this Agreement and its release; (c) Employee
has twenty-one (21) days to consider this release (although Employee may choose to voluntarily execute this Agreement earlier); (d) Employee
has seven (7) days following the execution of this Agreement to revoke this Agreement; and (e) this Agreement, including the
release contained herein, will not be effective until the Effective Date.

 

c.            Nothing
in this Agreement (including, without limitation, Sections 4, 5 and 7 hereof), the Plan or any other Company agreement, policy or procedure
(this Agreement, the Plan and such other agreements, policies and procedures, collectively, the “Company Arrangements”) limits
Employee’s ability to communicate directly with and provide information, including documents, not otherwise protected from disclosure
by any applicable law or privilege to the Securities and Exchange Commission (the “SEC”) or any other federal, state or local
governmental agency or commission (each, a “Government Agency”) regarding possible legal violations, without disclosure to
the Company.  The Company may not retaliate against Employee for any of these activities, and nothing in the Company Arrangements
requires Employee to waive any monetary award or other payment that Employee might become entitled to from the SEC or any other Government
Agency. Further, nothing in the Company Arrangements precludes Employee from filing a charge of discrimination with the Equal Employment
Opportunity Commission or a like charge or complaint with a state or local fair employment practice agency.  However, once this Agreement
becomes effective, Employee may not receive a monetary award or any other form of personal relief from the Company in connection with
any such charge or complaint that Employee filed or is filed on Employee’s behalf. Notwithstanding anything to the contrary in the
Company Arrangements, as provided for in the Defend Trade Secrets Act of 2016 (18 U.S.C. § 1833(b)), Employee will not be held criminally
or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (a) is made (i) in confidence
to a federal, state, or local government official, either directly or indirectly, or to an attorney, and (ii) solely for the purpose
of reporting or investigating a suspected violation of law; or (b) is made in a complaint or other document filed in a lawsuit or
other proceeding, if such filing is made under seal.  Without limiting the foregoing, if Employee files a lawsuit for retaliation
by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Employee’s attorney and use
the trade secret information in the court proceeding, if Employee (x) files any document containing the trade secret under seal,
and (y) does not disclose the trade secret, except pursuant to court order.

 

4.            Employee
acknowledges that Employee executed an Employee Restrictive Covenants, Proprietary Information and Inventions Agreement under which Employee
assumed certain obligations relating to the Company’s confidential and proprietary business information and trade secrets and containing
certain covenants relating to competition, solicitation and assignment of invention (“Employee Proprietary Information and Inventions
Agreement”). Employee agrees that, except to the extent it conflicts with Section 3(c), the Employee Proprietary Information
and Inventions Agreement shall by its terms survive the execution of this Agreement and expressly reaffirms Employee’s commitment
to abide by, and promises to abide by, the terms of the Employee Proprietary Information and Inventions Agreement; provided, that, on
the express condition that Employee has not revoked this Agreement, notwithstanding the terms of the Employee Proprietary Information
and Inventions Agreement, the “Post-Termination Non-Compete Term” (as defined therein) shall be 30 months following the Separation
Date. Employee also warrants and represents that Employee has returned any and all documents and other property of the Company constituting
a trade secret or other confidential research, development or commercial information (including all computer files, applicable passwords
and other electronically stored information) in Employee’s possession, custody or control, and represents and warrants that Employee
has not retained any copies or originals of any such property of the Company in any form. Employee further warrants and represents that,
except as provided by Section 3(c), Employee has never violated the Employee Proprietary Information and Inventions Agreement, and
will not do so in the future.

 

    -3-

     

    

 

5.            Employee
acknowledges that because of Employee’s position with the Company, Employee may possess information that may be relevant to or discoverable
in connection with claims, litigation or judicial, arbitral or investigative proceedings initiated by a private party or by a regulator,
governmental entity, or self-regulatory organization, that relates to or arises from matters with which Employee was involved during Employee’s
employment with the Company, or that concern matters of which Employee has information or knowledge (collectively, a “Proceeding”).
Employee agrees that Employee shall testify truthfully in connection with any such Proceeding. Except as provided in Section 3(c),
Employee agrees that Employee shall cooperate with the Company in connection with every such Proceeding, and that Employee’s duty
of cooperation shall include an obligation to meet with the Company representatives and/or counsel concerning all such Proceedings for
such purposes, and at such times and places, as the Company reasonably requests, and to appear for deposition and/or testimony upon the
Company’s request and without a subpoena. The Company shall reimburse Employee for reasonable out-of-pocket expenses that Employee
incurs in honoring Employee’s obligation of cooperation under this Section.

 

6.            Employee
and the Company understand and agree that it is in their mutual best interest to minimize the effect of Employee’s separation upon
the Company’s business and upon Employee’s professional reputation. Accordingly, Employee agrees to take all actions reasonably
requested of Employee by the Company in order to accomplish that objective. To this end, Employee shall respond to the Company concerning
business matters on an as-needed and as-requested basis, and the Company shall exercise reasonable efforts to avoid conflicts between
such requests and Employee’s personal and other business commitments, and Employee shall exercise reasonable efforts to fulfill
the Company’s requests in a timely manner.

 

7.            Employee
covenants never to disparage or speak ill of the Company or any of the Company’s products or services, or of any past or present
employee, officer or director of the Company, except as provided in Section 3(c). Employee further agrees not to harass, as that
term is defined by applicable law, any past, present or future Company employee, officer or director. The Company shall counsel its current
officers and directors covenant not to disparage or speak ill of Employee, including, but not limited to, his performance, leadership
or service with the Company.

 

8.            Release
of Unknown Claims. It is the intention of Employee that this Agreement contains a general release which shall be effective as a bar to
each and every claim, demand, or cause of action it releases. Employee recognizes that Employee may have some claim, demand, or cause
of action against the Company of which Employee is totally unaware and unsuspecting which Employee is giving up by execution of this Agreement.
It is the intention of Employee in executing this Agreement that it will deprive Employee of each such claim, demand or cause of action
and prevent Employee from asserting it against the released parties.

 

9.            No
Admission of Liability. The Parties agree that nothing contained herein, and no action taken by any Party hereto with regard to this
Agreement, shall be construed as an admission by any Party of liability or of any fact that might give rise to liability for any purpose
whatsoever.

 

    -4-

     

    

 

10.            Warranties.
Employee warrants and represents as follows:

 

a.            Employee
has read this Agreement, and Employee agrees to the conditions and obligations set forth in it.

 

b.            Employee
voluntarily executes this Agreement (i) after having been advised to consult with legal counsel, (ii) after having had opportunity
to consult with legal counsel, and (iii) without being pressured or influenced by any statement or representation or omission of
any person acting on behalf of the Company including, without limitation, the officers, directors, Board members, committee members, employees,
agents, and attorneys for the Company.

 

c.            Employee
has no knowledge of the existence of any lawsuit, charge, or proceeding against the Company or any of its officers, directors, Board members,
committee members, employees, successors, affiliates, or agents arising out of or otherwise connected with any of the matters herein released.
In the event that any such lawsuit, charge, or proceeding has been filed, Employee immediately will take all actions necessary to withdraw
or terminate that lawsuit, charge, or proceeding, unless the requirement for such withdrawal or termination is prohibited by applicable
law.

 

d.            Employee
has full and complete legal capacity to enter into this Agreement.

 

e.            Employee
has had at least twenty-one (21) days in which to consider the terms of this Agreement. In the event that Employee executes this Agreement
in less time, it is with the full understanding that Employee had the full twenty-one (21) days if Employee so desired and that Employee
was not pressured by the Company or any of its representatives or agents to take less time to consider the Agreement. In such event, Employee
expressly intends such execution to be a waiver of any right Employee had to review the Agreement for a full twenty-one (21) days.

 

f.            Employee
has been informed and understands that (i) to the extent that this Agreement waives or releases any claims Employee might have under
the Age Discrimination in Employment Act, Employee may rescind Employee’s waiver and release within seven (7) calendar days
of Employee’s execution of this Agreement and (ii) any such rescission must be in writing and hand delivered to Cyrus (Skip)
Marter, General Counsel and Secretary, at Civitas Resources, Inc., 555 17th Street, Suite 3700, Denver, CO 80202,
within the seven-day period.

 

g.            Employee
acknowledges, and agrees that (i) Employee is not otherwise entitled to payments, benefits, and other consideration set forth in
Appendix A and (ii) these payments, benefits, and other consideration are good and sufficient consideration for this Agreement.

 

h.            Employee
acknowledges, and agrees that Employee has been fully and finally paid or provided all wages, compensation, leave (paid and unpaid), vacation,
bonuses, equity awards, or other benefits from the Company which are or could be due to Employee, including, without limitation, under
the terms of the March 30, 2018 Terms and Conditions of Employee’s employment with the Company, but expressly excluding,
without limitation, amounts due to Employee under this Agreement.

 

11.            Resignation.
Employee acknowledges and agrees that, as of the Separation Date, Employee will be deemed to have automatically resigned as, to the extent
applicable: (a) as an officer of the Company and each affiliate of the Company for which Employee served as an officer; (b) from
the Board, the board of directors or board of managers (or similar governing body) of each affiliate of the Company for which Employee
served as a director or manager; and (c) from the board of directors or board of managers (or similar governing body) of any corporation,
limited liability entity, unlimited liability entity or other entity in which the Company or any other affiliate of the Company holds
an equity interest and with respect to which board of directors or board of managers (or similar governing body) Employee served as the
Company’s or such other affiliate’s member’s designee or other representative. Employee agrees to promptly execute such
additional documentation as requested by the Company to effectuate the foregoing.

 

    -5-

     

    

 

12.            Consulting
Services.

 

a.            During
the Consulting Period (as defined below), Employee agrees to provide technical consulting services to the Company in the capacity of an
independent contractor, which services will include Employee providing consultation and advice as may be requested by the Board from time
to time with regard to the business of the Company and the further transition of Employee’s duties and responsibilities (the “Services”);
provided, however, that the level of Services to be performed pursuant to this Section 12(a) shall not exceed a level equal
to 20% of the average level of services performed by Employee in his capacity as an employee of the Company during the 36-month period
ending on the Separation Date, except for any deviations that may be permitted in accordance with the regulations and other guidance promulgated
under Section 409A (as defined below) and, accordingly, Employee’s transition from an employee of the Company to a consultant
of the Company shall give rise to a “separation from service” within the meaning of Section 409A.  In providing
the Services, Employee agrees to attend such meetings as the Board may reasonably require for communication of his advice and consultation. 
Employee shall coordinate the furnishing of the Services with representatives of the Board in order that such services can be provided
in such a way as to generally conform to the business schedules and performance standards of the Company, but the method of performance,
time of performance, place of performance, and other details of the manner of performance of Employee’s provision of the Services
shall be within the sole control of Employee.  During the Consulting Period, (i) Employee shall have the right to devote his
business day and working efforts to other business and professional opportunities that do not interfere with his rendering of the Services
to the Company or his other obligations to the Company; and (ii) Employee shall not be deemed to be an agent of the Company or have
any power to bind or commit the Company or otherwise act on its behalf.

 

b.            During
the Consulting Period, Employee shall be an independent contractor and shall not participate in any benefit plans, programs or arrangements
of the Company or any of its affiliates unless such benefits are made available to Employee by operation of law and due to his former
employment status with the Company.  As an independent contractor, Employee shall be solely responsible for all taxes on the sums
received by him pursuant to this Section 12, and Employee expressly agrees to pay and be responsible for making all applicable tax
filings and remittances with respect to amounts paid to Employee pursuant to this Section 12 and to hold harmless the Company and
its affiliates for all claims, damages, costs and liabilities arising from Employee’s failure to do so.

 

c.            In
exchange for providing the Services set forth in Section 12(a) and for being available to do so, the Company shall pay Employee
a consulting fee equal to $100,000 for each completed three-month period during the Consulting Period (prorated for partial three-month
periods), payable within 30 days following the end of each such three-month period.

 

d.            Unless
earlier terminated as provided hereunder, the “Consulting Period” shall be that period between the Separation Date and the
date that is 12 months after the Separation Date; provided, however, that the Consulting Period, and Employee’s and the Company’s
respective obligations under this Section 12, shall be terminated prior to the date that is 12 months after the Separation Date upon
any of the following: (i) the death or disability of Employee; (ii) the termination of the Consulting Period by the Company
for Cause (as defined in the Plan); (iii) the termination of the Consulting Period by mutual agreement of the Company and Employee;
or (iv) Employee’s exercise of his right to revoke this Agreement as set forth in Section 3(b).

 

    -6-

     

    

 

13.            Section 409A.
The payments and benefits under this Agreement are intended to comply with Section 409A of the Code and Treasury Regulations promulgated
thereunder (“Section 409A”) or an exemption thereunder and shall be construed accordingly. It is the intention of the
Parties that payments or benefits payable under this Agreement not be subject to the additional tax or interest imposed pursuant to Section 409A.
Each payment to be made under this Agreement shall be a separate payment, and a separately identifiable and determinable payment, to the
fullest extent permitted under Section 409A. Payment of severance pay pursuant to this Agreement is intended to be exempt from Section 409A
of the Internal Revenue Code by reason of the exemptions for separation pay arrangements found in Treasury Regulation Section 1.409A-1(b)(9) and/or
for “short-term deferrals” found in Treasury Regulation Section 1.409A-1(b)(4) (or both) and the terms of this Agreement
shall be applied and interpreted to the extent possible in a manner that is consistent with the requirements of the aforementioned regulatory
exemptions. Notwithstanding the foregoing, the Company makes no representations that the payments and benefits provided under this Agreement
are exempt from, or compliant with, Section 409A and in no event shall the Company or any of its affiliates be liable for all or
any portion of any taxes, penalties, interest or other expenses that may be incurred by Employee on account of non-compliance with Section 409A.

  

14.            Severability.
If any provision of this Agreement (or portion thereof) is held illegal, invalid, or unenforceable, such holding shall not affect any
other provisions hereof. In the event any provision is held illegal, invalid, or unenforceable, such provision shall be limited so as
to give effect to the intent of the Parties to the fullest extent permitted by applicable law. Any claim by Employee against the Company
shall not constitute a defense to enforcement by the Company.

 

15.            Assignments.
The Company may assign its rights under this Agreement. No other assignment is permitted except by written permission of the Parties.

 

16.            Enforcement.
The releases contained herein do not release any claims for enforcement of the terms, conditions, or warranties contained in this Agreement.
The Parties shall be free to pursue any remedies available to them to enforce this Agreement.

 

17.            Entire
Agreement. This Agreement and any confidentiality, non-solicitation, or non-competition agreement signed by Employee, including, without
limitation, the Employee Proprietary Information and Inventions Agreement, are the entire agreement between the Parties relating to the
matters set forth herein. Except as provided herein, this Agreement supersedes any and all prior oral or written promises or agreements
between the Parties. Employee acknowledges that Employee has not relied on any promise, representation, or statement other than those
set forth in this Agreement. This Agreement cannot be modified except in writing signed by all Parties.

 

18.            Interpretation.
The determination of the terms of, and the drafting of, this Agreement has been by mutual agreement after negotiation, with consideration
by and participation of all Parties. Accordingly, the Parties agree that rules relating to the interpretation of contracts against
the drafter of any particular clause shall not apply in the case of this Agreement. The term “Paragraph” shall refer to the
enumerated paragraphs of this Agreement. The headings contained in this Agreement are for convenience of reference only and are not intended
to limit the scope or affect the interpretation of any provision of this Agreement.

 

19.            Choice
of Law and Venue. This Agreement shall be construed and interpreted in accordance with the laws of the State of Colorado, without
regard to its conflict of laws rules. Venue shall be exclusively in the Colorado state or federal courts located in Denver County, Colorado.

 

20.            Waiver
of Jury Trial. EACH OF THE PARTIES HERETO HEREBY VOLUNTARILY AND IRREVOCABLY WAIVES TRIAL BY JURY IN ANY ACTION OR OTHER PROCEEDING
BROUGHT IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE TRANSACTIONS CONTEMPLATED HEREBY.

  

21.            Waiver.
The failure of any Party to insist upon strict performance of any of the terms or conditions of this Agreement shall not constitute a
waiver of any of such Party’s rights hereunder.

 

22.            Counterparts.
This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Facsimile and electronic signatures shall be treated as originals.

 

[Remainder of page intentionally left blank]

  

    -7-

     

    

 

IN WITNESS WHEREOF, the Parties
have executed this Severance, Release and Consulting Agreement on the dates written below.

 

EMPLOYEE

  

	/s/ Eric T. Greager	 	1/31/2022
	Eric T. Greager	 	Date

 

THE COMPANY

  

	/s/ Cyrus D. Marter IV	 	1/31/2022
	Civitas Resources, Inc.	 	Date

By: Cyrus D. Marter IV

Title: General Counsel and Secretary

 

Signature Page to Severance, Release and Consulting Agreement

 

    

     

    

  

Appendix A

 

The Company shall provide Employee with the benefits
set forth below in accordance with the Eighth Amended and Restated Executive Change in Control and Severance Plan (the “Plan”),
the Agreement to which this Appendix A is attached, and this Appendix A. Capitalized terms not otherwise defined in the Agreement or this
Appendix A shall have the meanings set forth in the Plan.

 

Employee will receive the following elements as
consideration for Employee’s execution of the Agreement:

 

		1.	Within 60 days after Employee’s Separation Date, payment, in a lump sum, of Cash Severance equal
to 300% of the sum of Employee’s current annual Base Salary of $800,000. For the avoidance of doubt, the Cash Severance payment
shall be $2,400,000. State, local and federal tax withholdings on the Cash Severance Amount shall be deducted in accordance with the current
W-4 executed by the Employee and on file with the Company.

 

		2.	Effective on the Effective Date of the Agreement, all restricted stock units (“RSUs”) and
performance stock units (“PSUs”) granted to Employee under the Company’s LTIP or under the NYSE “inducement grant”
exemption that have not previously vested as of Employee’s Separation Date shall vest (and, for PSUs, at their “target”
performance level) as of the Separation Date (the “Vested RSUs” and the “Vested PSUs”). For the avoidance of doubt,
pursuant to this clause, Employee shall receive 99,225 shares of the Company’s common stock for his Vested RSUs and 49,569 shares
of the Company’s common stock for his Vested PSUs.

 

		3.	If and to the extent permitted under applicable law and without additional cost or penalty to the Company
or Employee, during the portion, if any, of the 24-month period, commencing as of the date Employee is eligible to elect and timely elects
to continue coverage for Employee and Employee’s eligible dependents under the Company’s group health plan pursuant to COBRA
or similar state law, the Company shall reimburse Employee for the difference between the amount Employee pays to effect and continue
such coverage and the employee contribution amount that active senior executive employees of the Company pay for the same or similar coverage,
with any such reimbursement payable for the 60 day period immediately following the Separation Date being payable on the first business
day 60 days following the Separation Date and any other such reimbursement payable being paid on a monthly basis thereafter; provided
that the Company may modify the continuation coverage contemplated by this provision to the extent reasonably necessary to avoid the imposition
of any excise taxes on the Company for failure to comply with the nondiscrimination requirements of the Patient Protection and Affordable
Care Act of 2010, as amended, and/or the Health Care and Education Reconciliation Act of 2010, as amended (to the extent applicable).

 

    Appendix A

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