Document:

exv10w3

Exhibit 10.3

AMENDMENT NO. 1

TO ADVISORY AGREEMENT

     This Amendment No. 1 to the Advisory Agreement (this “Amendment”) is made and entered
into as of February 1, 2010 (the “Effective Date”) by and among Steadfast Income REIT, Inc.
(f/k/a Steadfast Secure Income REIT, Inc.), a Maryland corporation (the “Company”),
Steadfast Income REIT Operating Partnership, L.P. (f/k/a Steadfast Secure Income REIT Operating
Partnership, L.P.), a Delaware limited partnership (the “Operating Partnership”), and
Steadfast Income Advisor, LLC (f/k/a Steadfast Secure Income Advisor, LLC), a Delaware limited
liability company (the “Advisor”). Capitalized terms used but not defined herein shall
have the meaning set forth in the Advisory Agreement (as defined below).

W I T N E S S E T H

     WHEREAS, the Company, the Operating Partnership and the Advisor entered into that certain
Advisory Agreement, dated as of September 28, 2009 (the “Advisory Agreement”), which
provided for, among other matters, the management of the Company’s and the Operating Partnership’s
day-to-day activities by the Advisor; and

     WHEREAS, pursuant to Section 28 of the Advisory Agreement, the Parties desire to amend the
Advisory Agreement to provide for the deferral of fees owed to the Advisor by the Company as
further provided herein.

     NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
contained herein, the Parties hereto, intending to be legally bound, hereby agree as follows:

ARTICLE I

AMENDMENTS

     The Advisory Agreement is hereby amended as follows:

     Section 1.1 Amendment to Section 24. Section 24 of the Agreement is hereby amended and
restated in its entirety as follows:

“24. DEFERRAL OF FEES BY ADVISOR. Notwithstanding anything contained in this Agreement to the
contrary, all fees due and payable to the Advisor pursuant to this Agreement may be deferred (the
“Deferred Fees”) as set forth below in this Section 24 during the period beginning on the Effective
Date and ending on the Offering Stage Termination Date (the “Deferral Period”). If, during any
calendar quarter during the Deferral Period, the Distributions paid exceed the Company’s Adjusted
Funds From Operations, the Company’s obligation to pay fees under this Agreement shall be deferred
in an amount equal to the amount by which the

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Distributions paid for such quarter exceed the Company’s Adjusted Funds From Operations for such
quarter, up to an amount equal to a 7.0% cumulative non-compounded annual return on Stockholders’
invested capital, prorated for such quarter. The Company is only obligated to pay the Deferred Fees
to the Advisor if and to the extent that the Company’s cumulative Adjusted Funds From Operations
for the period from the Effective Date through the date of such reimbursement exceed the lesser of
(1) the cumulative amount of any Distributions paid to the Stockholders as of the date of such
payment or (2) an amount that is equal to a 7.0% cumulative, non-compounded, annual return on
Stockholders’ invested capital for the period from the commencement of the Initial Public Offering
through the date of such payment. The obligation of the Company to pay the Deferred Fees shall
survive a termination of this Agreement, provided that the conditions set forth in the preceding
sentence are satisfied. The Advisor understands and agrees that the Company will not pay interest
on the Deferred Fees if and when such Deferred Fees are paid to the Advisor. The amount of fees
that shall be deferred pursuant to this Section 24 is limited to an aggregate amount of $5 million.”

ARTICLE II

MISCELLANEOUS

     Section 2.1 Continued Effect. Except as specifically set forth herein, all other terms and
conditions of the Advisory Agreement shall remain unmodified and in full force and effect, the same
being confirmed and republished hereby. In the event of any conflict between the terms of the
Advisory Agreement and the terms of this Amendment, the terms of this Amendment shall control.

     Section 2.2 Counterparts. The Parties may sign any number of copies of this Amendment. Each
signed copy shall be an original, but all of them together represent the same agreement. Delivery
of an executed counterpart of a signature page of this Amendment or any document or instrument
delivered in connection herewith by telecopy or other electronic method shall be effective as
delivery of a manually executed counterpart of this Amendment or such other document or instrument,
as applicable.

     Section 2.3 Governing Law. This Amendment shall be governed by, and construed in accordance
with, the internal laws of the State of Delaware.

[Signatures on following page]

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     IN WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date
first written above.

	 	 	 	 	 	 	 	 	 
	 	 	STEADFAST INCOME REIT, INC.	 	 
	 
	 	 	 	 	 	 	 	 
	                                                       
	 

	 	By:	 	/s/ Dinesh Davar	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Dinesh Davar	 	 
	 

	 	Title:	 	Chief Financial Officer	 	 
	                                                        
	 
	 	 	 	 	 	 	 	 
	 	 	STEADFAST INCOME REIT OPERATING PARTNERSHIP, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	STEADFAST INCOME REIT, INC., its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	                                                       
	 

	 	 	 	By:	 	/s/ Dinesh Davar	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Dinesh Davar
	 	 
	 

	 	 	 	Title:	 	Chief Financial Officer	 	 
	                                                        
	 
	 	 	 	 	 	 	 	 
	 	 	STEADFAST INCOME ADVISOR, LLC	 	 
	 
	 	 	 	 	 	 	 	 
	                                                       
	 

	 	By:	 	/s/ Dinesh Davar	 	 
	 	 	 	 	 	 	 
	 

	 	Name:	 	Dinesh Davar	 	 
	 

	 	Title:	 	Chief Financial Officerexv10w1

Exhibit 10.1

Execution Copy

ASSET PURCHASE AGREEMENT

dated as of

January 29, 2010

by and among

Gasco Energy, Inc.,

Riverbend Gas Gathering, LLC

and

Monarch Natural Gas, LLC

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION	 	 	1	 
	 
	 	 	 	 	 	 	 	 
	 
	 	1.1	 	Definitions	 	 	1	 
	 
	 	1.2	 	Rules of Construction	 	 	12	 
	 
	ARTICLE II PURCHASE AND SALE OF ASSETS, CLOSING	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 
	 	2.1	 	Sale and Purchase of Assets	 	 	12	 
	 
	 	2.2	 	Excluded Assets	 	 	14	 
	 
	 	2.3	 	Assumption of Liabilities	 	 	15	 
	 
	 	2.4	 	Retained Liabilities	 	 	15	 
	 
	 	2.5	 	Consideration	 	 	16	 
	 
	 	2.6	 	Salt Water Disposal Assets Closing	 	 	16	 
	 
	 	2.7	 	Title Defects	 	 	16	 
	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	 
	 	3.1	 	Organization of the Seller Parties	 	 	18	 
	 
	 	3.2	 	Authorization; Enforceability	 	 	18	 
	 
	 	3.3	 	No Conflict; Consents	 	 	19	 
	 
	 	3.4	 	Absence of Certain Changes or Events	 	 	20	 
	 
	 	3.5	 	Assumed Contracts	 	 	20	 
	 
	 	3.6	 	Material Contracts	 	 	20	 
	 
	 	3.7	 	Records	 	 	21	 
	 
	 	3.8	 	Intellectual Property	 	 	21	 
	 
	 	3.9	 	Litigation	 	 	21	 
	 
	 	3.10	 	Brokers’ Fees	 	 	22	 
	 
	 	3.11	 	Taxes	 	 	22	 
	 
	 	3.12	 	Environmental Matters	 	 	22	 
	 
	 	3.13	 	Compliance with Laws; Permits	 	 	25	 
	 
	 	3.14	 	Insurance	 	 	25	 
	 
	 	3.15	 	Condition of Assets, Sufficiency and Conveyance of Title	 	 	26	 
	 
	 	3.16	 	Solvency of the Seller Parties	 	 	26	 
	 
	 	3.17	 	Auction Process	 	 	27	 
	 
	 	3.18	 	Natural Gas and Natural Gas Liquids Imbalances	 	 	27	 
	 
	 	3.19	 	Preferential Rights	 	 	27	 
	 
	 	3.20	 	Employment and Labor Matters	 	 	27	 
	 
	 	3.21	 	Employee Benefits Matters	 	 	28	 
	 
	 	3.22	 	Guarantees	 	 	28	 
	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF BUYER	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	4.1	 	Organization of Buyer	 	 	28	 

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	 	 	 	 	 	 	Page	 
	 
	 	4.2	 	Authorization; Enforceability	 	 	28	 
	 
	 	4.3	 	No Conflict; Consents	 	 	29	 
	 
	 	4.4	 	Litigation	 	 	29	 
	 
	 	4.5	 	Brokers’ Fees	 	 	29	 
	 
	 	4.6	 	Solvency of the Buyer	 	 	29	 
	 
	 	4.7	 	Financial Ability	 	 	30	 
	 
	ARTICLE V COVENANTS	 	 	30	 
	 
	 	 	 	 	 	 	 	 
	 
	 	5.1	 	Satisfaction of Conditions Precedent	 	 	30	 
	 
	 	5.2	 	Conduct of Business, Operation of Assets	 	 	30	 
	 
	 	5.3	 	Access and Information	 	 	31	 
	 
	 	5.4	 	Confidentiality	 	 	32	 
	 
	 	5.5	 	Non-Consent Contracts	 	 	32	 
	 
	 	5.6	 	Preferential Rights and Third Party Consents	 	 	33	 
	 
	 	5.7	 	Casualty Loss	 	 	33	 
	 
	 	5.8	 	Seller Marks	 	 	34	 
	 
	 	5.9	 	Riverbend Marks	 	 	34	 
	 
	 	5.10	 	Records	 	 	34	 
	 
	 	5.11	 	Transferred Permits	 	 	34	 
	 
	 	5.12	 	Guarantees	 	 	35	 
	 
	 	5.13	 	Employees	 	 	35	 
	 
	 	5.14	 	Insurance	 	 	37	 
	 
	 	5.15	 	Liability for Transfer Taxes	 	 	37	 
	 
	 	5.16	 	Cooperation on Tax Matters	 	 	37	 
	 
	 	5.17	 	Use of Proceeds	 	 	37	 
	 
	 	5.18	 	Environmental Matters	 	 	38	 
	 
	 	5.19	 	Noncompetition	 	 	39	 
	 
	 	5.20	 	Further Assurances	 	 	40	 
	 
	ARTICLE VI CLOSING, CLOSING DELIVERIES, CONDITIONS TO CLOSING	 	 	40	 
	 
	 	 	 	 	 	 	 	 
	 
	 	6.1	 	The Closing	 	 	40	 
	 
	 	6.2	 	Conditions to Obligations of Buyer	 	 	40	 
	 
	 	6.3	 	Conditions to the Obligations of Seller Parties	 	 	43	 
	 
	ARTICLE VII INDEMNIFICATION	 	 	45	 
	 
	 	 	 	 	 	 	 	 
	 
	 	7.1	 	Survival	 	 	45	 
	 
	 	7.2	 	Indemnification Provisions for Benefit of Buyer	 	 	45	 
	 
	 	7.3	 	Indemnification Provisions for Benefit of the Seller Parties	 	 	46	 
	 
	 	7.4	 	Procedures	 	 	47	 
	 
	 	7.5	 	Exclusive Remedy and Release	 	 	49	 
	 
	ARTICLE VIII TERMINATION	 	 	50	 
	 
	 	 	 	 	 	 	 	 
	 
	 	8.1	 	Termination	 	 	50	 
	 
	 	8.2	 	Effect of Termination	 	 	50	 

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	 	 	 	 	 	 	Page	 
	ARTICLE IX MISCELLANEOUS	 	 	51	 
	 
	 	 	 	 	 	 	 	 
	 
	 	9.1	 	Notices	 	 	51	 
	 
	 	9.2	 	Succession and Assignment	 	 	52	 
	 
	 	9.3	 	Rights of Third Parties	 	 	52	 
	 
	 	9.4	 	Expenses	 	 	52	 
	 
	 	9.5	 	Counterparts	 	 	52	 
	 
	 	9.6	 	Entire Agreement	 	 	52	 
	 
	 	9.7	 	Disclosure Schedules	 	 	52	 
	 
	 	9.8	 	Waiver of Other Representations and Warranties	 	 	53	 
	 
	 	9.9	 	Acknowledgment by Buyer	 	 	53	 
	 
	 	9.10	 	Amendments	 	 	55	 
	 
	 	9.11	 	Publicity	 	 	55	 
	 
	 	9.12	 	Non-Waiver	 	 	55	 
	 
	 	9.13	 	Severability	 	 	56	 
	 
	 	9.14	 	Governing Law; Jurisdiction	 	 	56	 
	 
	 	9.15	 	Arbitration	 	 	56	 

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LIST OF EXHIBITS

	 	 	 
	Exhibit A

	 	Gathering Agreement
	Exhibit B

	 	Transition Services Agreement
	Exhibit C

	 	Salt Water Disposal Services Agreements
	Exhibit D

	 	Assignment and Assumption Agreement
	Exhibit E

	 	Assignment of Real Property Interests
	Exhibit F

	 	Form of FIRPTA Certificates
	Exhibit G-1

	 	EPA Consent Decree Draft
	Exhibit G-2

	 	Buyer Mark-up of the EPA Consent Decree Draft

LIST OF SELLER PARTIES’ DISCLOSURE SCHEDULES

	 	 	 
	Schedule 1.1(a)

	 	Seller Parties’ Persons with Knowledge
	Schedule 1.1(b)

	 	Permitted Liens
	Schedule 2.1(a)(i)

	 	Gathering System
	Schedule 2.1(a)(ii)

	 	Real Property Interests
	Schedule 2.1(a)(iii)

	 	Assumed Contracts
	Schedule 2.1(a)(iv)

	 	Transferred Permits
	Schedule 2.1(a)(v)

	 	Personal Property
	Schedule 2.1(b)(i)

	 	Evaporative Facilities
	Schedule 2.1(b)(ii)

	 	Evaporative Facilities Real Property Interests
	Schedule 2.2

	 	Excluded Assets
	Schedule 3.3(b)

	 	Governmental Authority Notices & Consents
	Schedule 3.3(e)

	 	Non-Governmental Authority Notices & Consents
	Schedule 3.4

	 	Certain Changes or Events
	Schedule 3.5

	 	Termination or Breach of Any Assumed Contracts
	Schedule 3.6

	 	Material Contracts
	Schedule 3.9

	 	Litigation
	Schedule 3.11

	 	Tax Matters
	Schedule 3.12

	 	Environmental Matters
	Schedule 3.13

	 	Compliance with Laws; Permits
	Schedule 3.14

	 	Insurance
	Schedule 3.15

	 	Condition of Assets, Sufficiency and Conveyance of Title
	Schedule 3.19

	 	Preferential Rights
	Schedule 3.20(a)

	 	Employee Matters
	Schedule 3.20(c)

	 	Employment and Labor Agreements
	Schedule 3.21(a)

	 	Employee Benefit Plans
	Schedule 3.22

	 	Guarantees
	Schedule 5.13(a)

	 	Employees
	Schedule 5.18(c)

	 	Pneumatic Controls Relating to the EPA Enforcement Action

LIST OF BUYER’S DISCLOSURE SCHEDULES

	 	 	 
	Schedule 1.1(a)

	 	Buyer’s Persons with Knowledge
	Schedule 4.3(b)

	 	Governmental Authority Notices/Consents

iv

 

	 	 	 
	Schedule 4.3(d)

	 	Non-Governmental Authority Notices/Consents
	Schedule 4.4

	 	Litigation
	Schedule 4.5

	 	Brokers’ Fees
	Schedule 6.2(e)

	 	Assignment of Agreements
	Schedule 6.2(i)

	 	Consents
	Schedule 6.2(k)(xi)

	 	Lien Releases

v

 

ASSET PURCHASE AGREEMENT

     This Asset Purchase Agreement (this “Agreement”), dated as of January 29, 2010 (the “Effective
Date”), is entered into by and among Gasco Energy, Inc., a Nevada corporation (“Gasco”),
Riverbend Gas Gathering, LLC, a Nevada limited liability company and a wholly owned subsidiary of
Gasco (“Seller,” and together with Gasco, the “Seller Parties”), and Monarch Natural Gas, LLC, a
Delaware limited liability company (“Buyer”). The Seller Parties and Buyer are sometimes referred
to collectively herein as the “Parties” and each individually a “Party.”

RECITALS

     WHEREAS, Seller is the owner of certain Assets (as defined below) located in the State of
Utah; and

     WHEREAS, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, the
Assets, subject to the terms and conditions described in this Agreement;

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

ARTICLE I

DEFINITIONS AND RULES OF CONSTRUCTION

     1.1 Definitions. As used herein, the following terms shall have the
following meanings:

     “AAA” has the meaning provided to such term in Section 9.15(a).

     “Affiliate” means, with respect to any Person, any other Person that, directly or indirectly,
controls, is controlled by or is under common control with, such specified Person through one or
more intermediaries or otherwise. For the purposes of this definition, “control” means, where used
with respect to any Person, the possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through the ownership of
voting securities, by contract or otherwise, and the terms “controlling” and “controlled” have
correlative meanings.

     “Agreed-Upon Title Defect” has the meaning provided to such term in Section 2.7(e).

     “Agreed-Upon Title Defect Amount” has the meaning provided to such term in Section
2.7(e).

     “Agreement” has the meaning provided such term in the preamble.

     “Assets” means the Purchased Assets and Salt Water Disposal Assets.

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     “Assignment and Assumption Agreement” means that certain assignment and assumption agreement,
to be dated as of the Closing Date, by and between Buyer and Seller, substantially in the form of
Exhibit D hereto.

     “Assignment of Real Property Interests” means that certain assignment agreement relating to
the Real Property Interests and, if the Salt Water Disposal Assets are transferred at the Closing,
the Evaporative Facilities Real Property Interests, to be dated as of the Closing Date, by and
between Buyer and Gasco Production, substantially in the form of Exhibit E hereto.

     “Assumed Contracts” has the meaning provided such term in Section 2.1(a)(iii).

     “Assumed Liabilities” has the meaning provided such term in Section 2.3.

     “Bankruptcy Code” means Title 11 of the United States Code, as amended.

     “Business Day” means any day that is not a Saturday, Sunday or other day on which banks
located in New York City are authorized or required to close.

     “Buyer” has the meaning provided such term in the preamble.

     “Buyer Indemnified Parties” has the meaning provided such term in Section 7.2.

     “Buyer Mark-up of the EPA Consent Decree Draft” has the meaning provided such term in
Section 5.18(a).

     “Buyer’s Disclosure Schedule” and “Buyer’s Schedule” means the disclosure schedule of Buyer
attached hereto.

     “Casualty Losses” has the meaning provided such term in Section 5.7.

     “Claim Notice” has the meaning provided such term in Section 7.4(a).

     “Claimant” has the meaning provided such term in Section 9.15(e).

     “Closing” has the meaning provided such term in Section 6.1.

     “Closing Date” has the meaning provided such term in Section 6.1.

     “COBRA” means the Consolidated Omnibus Budget Reconciliation Act of 1985.

     “Code” means the Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.

     “Confidentiality Agreement” means that certain confidentiality agreement, dated as of
October 14, 2009, by and among Monarch Investments Holdings, LLC, Gasco and Gasco Production
Company.

     “Conspicuous Disclaimers” has the meaning provided such term in Section 9.9(a).

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     “Constituents of Concern” means (i) any pollutant, contaminant, waste or chemical or any
toxic, radioactive, ignitable, corrosive, reactive or otherwise hazardous substance, waste or
material, or any substance, waste or material having any constituent elements displaying any of the
foregoing characteristics; (ii) any substance defined as a hazardous substance, hazardous waste,
hazardous material, pollutant or contaminant, or words of similar import, under any Environmental
Law; (iii) petroleum and any of its degradation products, by-products and derivatives, any other
hydrocarbons, to the extent that any of the foregoing is subject to regulation under any
Environmental Law; and (iv) asbestos, asbestos-containing materials and polychlorinated biphenyls.

     “Contingency Plans” has the meaning provided such term in Section 5.18(d).

     “Contract” means any legally binding agreement, commitment, lease, license or contract.

     “Damages” means all actions, suits, proceedings, hearings, investigations, charges,
complaints, claims, demands, Orders, awards, damages, dues, penalties, fines, capital expenditures,
costs, amounts paid in settlement, Liabilities, Taxes, liens, actual losses, expenses, and fees
(whether criminal, civil, commercial or related to claims for personal injury), including court
costs and attorneys’, consultants’, engineers’ and other experts’ fees and expenses, but excluding
punitive, exemplary and consequential Damages; provided that the foregoing limitation with respect
to exemplary and punitive Damages shall not apply to indemnification for such Damages arising from
Third Party Claims where a third party obtains such Damages against the Indemnified Party and for
which indemnification is required hereunder.

     “Deductible” has the meaning provided such term in Section 7.2.

     “Direct Claim” has the meaning provided such term in Section 7.4(d).

     “Disclosure Schedules” means the Buyer’s Disclosure Schedules and the Seller Parties’
Disclosure Schedules attached hereto.

     “Dispute” has the meaning provided to such term in Section 9.15(a).

     “Dollars” and “$” mean the lawful currency of the United States of America.

     “DOJ” has the meaning provided such term in Section 5.18(a).

     “Due Diligence Information” has the meaning provided such term in Section 9.9(c)(i).

     “Effective Date” has the meaning provided such term in the preamble.

     “Employee” or “Employees” has the meaning provided such term in Section 3.20(a).

     “Employee Benefit Plan” means any “employee benefit plan,” within the meaning of Section 3(3)
of ERISA, and any bonus, deferred compensation, incentive compensation, stock ownership, stock
purchase, stock option, phantom stock, vacation, severance, disability, death benefit,
hospitalization or insurance plan or employment or consulting agreement or arrangement

3

 

providing benefits to any present or former employee of Seller or with respect to which Seller has any
liability, contingent or otherwise.

     “Environmental Costs and Liabilities” means any and all Damages, including the cost of any
Remedial Action, which arise out of or relate to (i) the existence, release, manufacture,
processing, distribution, use, treatment, storage, disposal, transport or handling of any
Constituents of Concern or (ii) the violation of or liability under any Environmental Law or
Environmental Permit.

     “Environmental Law” means any and all Laws pertaining to or regulating pollution,
environmental protection, natural resource damages, conservation of resources, wildlife, waste
management, occupational health and safety or the use, handling, storage, generation, production,
treatment, emission, discharge, release, remediation, removal, disposal, or transport of
pollutants, contaminants, wastes or chemicals or any toxic, radioactive, ignitable, corrosive,
reactive or otherwise hazardous substances, wastes or materials, including, without limitation:
the Comprehensive Environmental Response, Compensation and Liability Act, the Resource Conservation
and Recovery Act, the Toxic Substances Control Act, the Federal Water Pollution Control Act (which
includes the Federal Clean Water Act), the Federal Clean Air Act, the Federal Solid Waste Disposal
Act (which includes the Resource Conservation and Recovery Act), the Federal Toxic Substances
Control Act, the Federal Insecticide, Fungicide and Rodenticide Act, the Safe Drinking Water Act
of 1974, the Emergency Planning and Community Right-to-Know Act of 1986, the Occupational Safety
and Health Act of 1970, the Hazardous Liquid Pipeline Safety Act, the Oil Pollution Act of 1990,
and the Pipeline Safety Improvement Act of 2002, and any regulations promulgated thereunder and any
similar state and local laws and regulations, each as amended.

     “Environmental Permits” means all Permits issued pursuant to or required by Environmental Laws
and necessary for or held in connection with the Assets or the ownership and/or operation thereof.

     “EPA” has the meaning provided such term in Section 5.18(a).

     “EPA Consent Decree” has the meaning provided such term in Section 5.18(a).

     “EPA Consent Decree Draft” has the meaning provided such term in Section 5.18(a).

     “EPA Enforcement Action” has the meaning provided such term in Section 3.12.

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

     “ERISA Affiliate” means any corporation, trade, business, or entity under “common control”
with the Seller, within the meaning of Section 414(b), (c) or (m) of the Code or Section 4001 of
ERISA.

     “Evaporative Facilities” has the meaning provided such term in Section 2.1(b)(i).

     “Evaporative Facilities Real Property Interests” has the meaning provided such term in
Section 2.1(b)(ii).

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     “Excluded Assets” has the meaning provided such term in Section 2.2.

     “Exhibits” means the exhibits attached hereto.

     “FICA” has the meaning provided such term in Section 5.13(i).

     “FIRPTA Certificates” has the meaning provided such term in Section 6.2(k)(xii).

     “FUTA” has the meaning provided such term in Section 5.13(i).

     “GAAP” means generally accepted accounting principles of the United States, consistently
applied.

     “Gas Purchase and Sale Agreement” has the meaning provided such term in Section
6.2(d).

     “Gasco” has the meaning provided such term in the preamble.

     “Gasco Production” has the meaning provided such term in Section 6.2(e).

     “Gathering Agreement” means that certain gathering agreement, to be dated as of the Closing
Date, by and among Buyer and Gasco Production, substantially in the form of Exhibit A
hereto.

     “Gathering System” has the meaning provided such term in Section 2.1(a)(i).

     “Governmental Authority” means any regulatory or administrative agency, department, division,
commission, court or arbitral body, or other similar recognized organization or body of any
domestic federal, state, municipal, or local governmental authority or of any foreign government or
other similar recognized organization or body exercising similar powers or authority.

     “Guarantees” means any contract or agreement under which any of the Seller Parties has agreed
to act as guarantor or surety with respect to any of the Assets and any letter of credit, surety
bond or performance bond provided by a third party and securing an obligation of any of the Seller
Parties with respect to any of the Assets.

     “Indebtedness” of any Person means, at any time, without duplication, (i) any indebtedness for
borrowed money of such Person, (ii) any indebtedness of such Person evidenced by any note, bond,
debenture, other debt security, letter of credit or banker’s acceptance, (iii) any indebtedness for
the deferred purchase price of property or services with respect to which such Person is liable,
contingently or otherwise, as obligor or otherwise (other than trade payables and other current
liabilities incurred in the ordinary course of business), (iv) any indebtedness guaranteed in any
manner by such Person, (v) any obligations under capitalized leases with respect to which such
Person is liable, contingently or otherwise, as obligor, guarantor or otherwise, (vi) any
indebtedness secured by a Lien on such Person’s assets, (vii) any obligations under any “park and
lend” arrangement relating to natural gas, natural gas liquids or other hydrocarbons and (viii) any
obligations under any swap agreement, cap

5

 

agreement, collar agreement, futures contract, forward contract or similar agreement or arrangement designed to protect against or mitigate the effect of
fluctuations in interest rates, foreign exchange rates or prices of natural gas, natural gas
liquids or other hydrocarbons or commodities.

     “Indemnified Party” has the meaning provided such term in Section 7.4(a).

     “Indemnifying Party” has the meaning provided such term in Section 7.4(a).

     “Intellectual Property” means all intellectual property rights, statutory and common law,
worldwide, including: (a) trademarks, service marks, trade dress, slogans, logos and all goodwill
associated therewith, and any applications or registrations for any of the foregoing; (b)
copyrights and any applications or registrations for any of the foregoing; and (c) patents,
know-how, trade secrets and similar proprietary rights in inventions, discoveries, improvements,
processes, techniques, devices, methods, patterns, formulae, specifications, designs and lists of
suppliers, vendors, customers, and distributors.

     “Knowledge” means (a) with respect to the Seller Parties, the actual knowledge of the persons
identified on Seller Parties’ Schedule 1.1(a) as “Seller Parties’ Persons With Knowledge”
after reasonable inquiry, and (b) with respect to Buyer, the actual knowledge of the persons
identified on Buyer’s Schedule 1.1(a) as “Buyer’s Persons With Knowledge,” after reasonable
inquiry.

     “Law” means any applicable statute, writ, law, common law, rule, regulation, ordinance, Order,
or determination of a Governmental Authority, or any requirement under the common law, in each case
as in effect on and as interpreted on the Effective Date or on and as of the Closing Date, as
applicable, unless the context otherwise clearly requires a different date, in which case on and as
of such date.

     “Liability” means any debt, liability or obligation (whether direct or indirect, absolute or
contingent, accrued or unaccrued, liquidated or unliquidated, or due or to become due), and
including all costs and expenses relating thereto.

     “Lien” means any liens, claims, easements, servitudes, transfer restrictions, charges,
pledges, options, mortgages, deeds of trust, hypothecations, encumbrances or security interests.

     “Marketable Securities” means equity securities which are registered under the Securities Act,
listed on a national securities exchange or on the NASDAQ Stock Market and which may be Transferred
without legal or contractual restrictions, including, without limitation, restrictions arising
under Rule 144 or Rule 145 under the Securities Act.

     “Material Adverse Effect” means (a) with respect to the Assets, a circumstance, change or
effect that is materially adverse to the business, ownership, use, condition, operations (including
results of operation), rights or Liabilities of or related to the Assets, taken as a whole, or (b)
with respect to any Person, a circumstance, change or effect that materially impedes the ability of
such Person to complete the transactions contemplated by this Agreement and the other Transaction
Documents, and to perform its obligations hereunder and thereunder; excluding, in each case, any
such circumstance, effect, event, development or change resulting from or related

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to (i) changes in general economic, political or business conditions which affect such Person, except any such
changes that affect such Person in a disproportionate manner compared to similarly situated
participants in the industries in which such Person operates; (ii) conditions affecting the oil and
gas industry or with oil and gas exploration, development and production generally except any such
changes that affect such Person in a disproportionate manner compared to similarly situated
participants in the industries in which such Person operates; (iii) any change in law or in
accounting rules after the Effective Date except any such change that affects such Person in a
disproportionate manner compared to similarly situated participants in the industries in which such
Person operates; or (iv) conditions or effects that have been demonstrated by such Person as
resulting primarily from the announcement of the existence of this Agreement.

     “Material Contracts” means (a) all material gas sales, purchase, exchange, treating,
compressor, gathering, transportation, marketing and processing Contracts to which a Seller Party
is a party and which relate to the ownership or operation of the Assets; provided that any such
Contract with a term of longer than three months and which may not be terminated by the Seller
Party which is a party thereto upon less than three months notice without penalty or payment shall
be deemed a Material Contract; (b) all other Contracts materially affecting the ownership or
operation of the Assets or which impose any material monetary Liability or other material Liability
with respect to Seller’s ownership in, or operation of, the Assets and (c) all Contracts that would
prohibit or restrict the transfer of the Assets to Buyer pursuant to this Agreement or under which
such transfer would constitute a material breach; but not including (i) any and all oil and/or gas
leases, unit agreements or rights acquired under farm-in agreements or (ii) any other leases,
licenses or Contracts not specifically assigned to Buyer pursuant to Section 2.1(a)(ii) and
Section 2.1(a)(iii).

     “Net Purchased Assets Sale Price” has the meaning provided such term in Section 2.5.

     “Non-Consent Contracts” has the meaning provided such term in Section 5.5.

     “Notice of Disagreement” has the meaning provided to such term in Section 2.7(b).

     “Order” means any order, writ, injunction, decree, award, judgment, ruling, compliance or
consent order or decree, settlement agreement, and similar binding legal agreement issued by or
entered into with a Governmental Authority.

     “Ordinary Course of Business” means the ordinary conduct of Seller’s normal day to day
business related to the Assets in accordance with the past practices and customs of Seller applied
on a consistent basis.

     “Organizational Documents” means any charter, certificate of incorporation, articles of
association, partnership agreements, limited liability company agreements, bylaws, operating
agreement or similar formation or governing documents, instruments or certificates executed,
adopted or filed in connection with the creation, formation or organization of a Person, including
any amendments thereto.

     “Panel” has the meaning provided such term in Section 9.15(e).

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     “Party” or “Parties” has the meaning provided such term in the preamble.

     “Permits” means any permit, license or sublicense (other than Intellectual Property licenses),
certificate, consent, approval, waiver, authorization, registration and any similar item issued by
any Governmental Authority or other entity of any kind.

     “Permitted Liens” means (a) Liens for Taxes not yet due; (b) statutory Liens (including
materialmen’s, warehousemen’s, mechanic’s, repairmen’s, landlord’s, and other similar Liens)
arising in the Ordinary Course of Business securing payments not yet due; (c) the rights of lessors
and lessees under leases, and the rights of third parties under any agreement, executed in the
Ordinary Course of Business listed on Seller Parties Schedule 1.1(b); (d) the rights of
licensors and licensees under licenses executed in the Ordinary Course of Business listed on
Seller Parties Schedule 1.1(b); (e) restrictive covenants, easements and defects,
imperfections or irregularities of title, if any, as would not reasonably be expected to adversely
affect the ownership, use or operation of the Assets in any material respect; (f) purchase money
Liens and Liens securing rental payments under capital lease arrangements listed on Seller
Parties Schedule 1.1(b); (g) preferential purchase rights and other similar arrangements
listed on Seller Parties Schedule 1.1(b) with respect to which consents or waivers are
obtained for this transaction prior to Closing or as to which the time for asserting such rights
has expired at the Closing Date without an exercise of such rights; (h) restrictions on transfer
listed on Seller Parties Schedule 1.1(b) with respect to which consents or waivers are
obtained for this transaction prior to Closing; (i) any Liens created pursuant to operating or
similar agreements listed on Seller Parties Schedule 1.1(b); (j) Liens entered into in the
Ordinary Course of Business that do not secure the payment of Indebtedness and that do not
adversely affect the ability of Buyer to own, use or operate the Assets; and (k) Liens created by
Buyer, or its successors and assigns.

     “Person” means any individual, firm, corporation, partnership, limited liability company,
incorporated or unincorporated association, joint venture, joint stock company, Governmental
Authority or other entity of any kind.

     “Personal Property” has the meaning provided such term in Section 2.1(a)(v).

     “Proceeding” means any action, arbitration, audit, cause, claim, complaint, hearing, inquiry,
investigation, litigation, proceeding, review or suit (whether civil, criminal, administrative,
investigative, or informal) commenced, brought, conducted, or heard by or before, or otherwise
involving, any Governmental Authority, arbitrator or any other third party.

     “Property Taxes” has the meaning provided such term in Section 5.16(b).

     “Purchased Assets” has the meaning provided such term in Section 2.1(a).

     “Purchased Assets Sale Price” means $18,500,000.

     “Real Property Interests” has the meaning provided such term in Section 2.1(a)(ii).

     “Reasonable Efforts” means efforts in accordance with reasonable commercial practice and
without the incurrence of material expense.

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     “Records” means files, documents, instruments, notes, papers, ledgers, journals, reports,
abstracts, surveys, maps, books, records, studies and similar data and information, whether in
written or electronic form.

     “Remedial Action” means the voluntary or involuntary investigation, feasibility or other
study, monitoring, imposition of institutional controls or deed restrictions, clean-up, removal or
remediation (or words of similar import) of contamination or otherwise relating to or arising from
the existence, release, discharge, disposal, dumping, injection, pumping, deposit, spill, leak,
emission, manufacture, processing, distribution, use, treatment, storage, disposal, transport or
handling of Constituents of Concern.

     “Representatives” means a Person’s directors, officers, employees, agents or advisors
(including attorneys, accountants, auditors, consultants, bankers, financial advisors and any
representatives of those advisors).

     “Respondent” has the meaning provided such term in Section 9.15(e).

     “Retained Liabilities” has the meaning provided such term in Section 2.4.

     “Riverbend Marks” means the “Riverbend” mark and all variations thereof and any and all
trademarks, service marks, slogans, logos and trade names containing or comprising of the same,
including all goodwill associated therewith, and any applications or registrations for any of the
foregoing.

     “Rules” has the meaning provided such term in Section 9.15(a).

     “Salt Water Disposal Assets” has the meaning provided such term in Section 2.1(b).

     “Salt Water Disposal Assets Closing” has the meaning provided such term in Section
2.6.

     “Salt Water Disposal Assets Sale Price” means $4,500,000.

     “Salt Water Disposal Services Agreements” means that certain agreement, dated as of either the
Closing Date (if the Salt Water Disposal Assets are transferred at the Closing) or the date of the
Salt Water Disposal Assets Closing (if the Salt Water Disposal Assets are not transferred at the
Closing), by and among Buyer and Seller Parties, substantially in the form of Exhibit C
hereto.

     “Seller” has the meaning provided such term in the preamble.

     “Seller Indemnified Parties” has the meaning provided such term in Section 7.3.

     “Seller Marks” has the meaning provided such term in Section 5.8.

     “Seller Parties” has the meaning provided such term in the preamble.

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     “Seller Parties’ Disclosure Schedules” and “Seller Parties’ Schedule” means the disclosure
schedules of Seller Parties attached hereto.

     “SPCC Plans” has the meaning provided such term in Section 5.18(d).

     “Start Date” has the meaning provided such term in Section 5.13(c).

     “Subsidiary” means, with respect to any Person, (a) any corporation, of which a majority of
the total voting power of shares of stock entitled (without regard to the occurrence of any
contingency) to vote generally in the election of directors thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that
Person or a combination thereof or (b) any limited liability company, partnership, association or
other business entity, of which a majority of the partnership or other similar ownership interests
thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more
Subsidiaries of that Person or a combination thereof. For purposes of this definition, a Person or
Persons will be deemed to have a majority ownership interest in a limited liability company,
partnership, association or other business entity if such Person or Persons will be allocated a
majority of limited liability company, partnership, association or other business entity gains or
losses, or is or controls the managing member or general partner of such limited liability company,
partnership, association or other business entity.

     “Target Release Date” has the meaning provided such term in Section 5.12.

     “Tax” and “Taxes” means all taxes, assessments, charges, duties, fees, levies, imposts or
other similar charges imposed by a Governmental Authority, including all income, franchise,
profits, capital gains, capital stock, transfer, gross receipts, sales, use, transfer, service,
occupation, ad valorem, property, excise, severance, windfall profits, premium, stamp, license,
payroll, employment, social security, unemployment, disability, environmental, alternative minimum,
add-on, value-added, withholding and other taxes, assessments, charges, duties, fees, levies,
imposts or other similar charges of any kind, and all estimated taxes, deficiency assessments,
additions to tax, penalties and interest. For purposes of Section 3.11, the term “Taxes”
includes only such Taxes that relate to the Assets or for which Buyer may have liability.

     “Tax Returns” means any report, return, election, document, estimated tax filing, declaration
or other filing provided to any Governmental Authority including any attachments thereto and
amendments thereof. For purposes of Section 3.11, the term “Tax Returns” includes only such
Tax Returns associated with the Taxes that relate to the Assets or for which Buyer may have
liability.

     “Termination Date” has the meaning provided such term in Section 5.13(c).

     “Third Party Claim” has the meaning provided such term in Section 7.4(a).

     “Title Defect” means (i) any title defect or Lien, other than a Permitted Lien, that causes
the Buyer to not have good title, free and clear of all Liens other than Permitted Liens, to any
portion of the Real Property Interests (including the fixtures, buildings and improvements thereon,
to the extent constituting Real Property Interests); (ii) the extent to which the Real Property
Interests do not grant or create for the benefit of the Buyer all rights reasonably

10

 

necessary for the operations (as currently operated), use, maintenance, repair, and replacement of the Assets;
and (iii) the extent to which the Real Property Interests are not contiguous or do not cover the
continuous length of all pipelines included in the Gathering System without any gaps.
Notwithstanding the foregoing, Title Defect shall not mean, be with respect to, or include those
portions of any existing rights-of-way lying on or within or that may pass across or though any
United States Department of the Interior Bureau of Land Management lease or State of Utah Lease
from any wellhead to an on lease connection point, or to a lease boundary, or rights-of-way granted
or used under a relevant Bureau of Land Management Unit Operating Agreement.

     “Title Defect Amount” has the meaning provided to such term in Section 2.7(a).

     “Title Defect Arbitrator” has the meaning provided to such term in Section 2.7(c).

     “Title Defect Determination Date” has the meaning provided to such term in Section
2.7(e).

     “Title Defect Notice” has the meaning provided to such term in Section 2.7(a).

     “Transferred Employee” has the meaning provided such term in Section 5.13(c).

     “Transferred Intellectual Property” has the meaning provided such term in Section
2.1(a)(vi).

     “Transferred Records” has the meaning provided such term in Section 2.1(a)(vii).

     “Transferred Permits” has the meaning provided such term in Section 2.1(a)(iv).

     “Transaction Documents” means this Agreement and the other documents executed and delivered by
the Parties at the Closing or thereafter in consummation of the transactions between them
contemplated by this Agreement, including those documents to be delivered by the Parties pursuant
to this Agreement, and any other Contract, agreement or document by and among the Parties that is
expressly agreed by the Parties to constitute a Transaction Document for purposes of this
Agreement.

     “Transition Period” has the meaning provided such term in Section 5.13(c).

     “Transition Services Agreement” means that certain transition services agreement, dated as of
the Closing Date, by and among Buyer and Gasco, substantially in the form of Exhibit B
hereto.

     “United States” means United States of America.

     “Welfare Benefit Claim” has the meaning provided such term in Section 5.13(e).

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     1.2 Rules of Construction.

          (a) All article, section, schedule and exhibit references used in this Agreement are to
articles and sections of, and schedules and exhibits to, this Agreement unless otherwise specified.
The schedules and exhibits attached to this Agreement constitute a part of this Agreement and are
incorporated herein for all purposes as if set forth in full herein. Any capitalized terms used in
any Disclosure Schedule or Exhibit hereto but not otherwise defined therein shall have the meaning
as set forth in this Agreement.

          (b) If a term is defined as one part of speech (such as a noun), it shall have a corresponding
meaning when used as another part of speech (such as a verb). Terms defined in the singular have
the corresponding meanings in the plural, and vice versa. Unless the context of this Agreement
clearly requires otherwise, words importing the masculine gender shall include the feminine and
neutral genders and vice versa. The terms “include,” “includes” or “including” shall mean
“including without limitation.” The words “hereof,” “hereto,” “hereby,” “herein,” “hereunder” and
words of similar import, when used in this Agreement, shall refer to this Agreement as a whole and
not to any particular section or article in which such words appear.

          (c) The Parties acknowledge that each Party has reviewed this Agreement and that any rule of
construction to the effect that any ambiguities are to be resolved against the drafting Party, or
any similar rule operating against the drafter of an agreement, shall not be applicable to the
construction or interpretation of this Agreement.

          (d) The captions in this Agreement are for convenience only and shall not be considered a part
of or affect the construction or interpretation of any provision of this Agreement.

          (e) All references to currency or to “$” herein shall be to, and all payments required
hereunder shall be paid in, Dollars.

          (f) All accounting terms used herein and not expressly defined herein shall have the meanings
given to them under GAAP.

ARTICLE II

PURCHASE AND SALE OF ASSETS, CLOSING

     2.1 Sale and Purchase of Assets. Upon the terms and subject to the conditions set
forth herein, at the Closing, Seller shall sell, assign, transfer, convey and deliver to Buyer, and
Buyer will purchase, acquire and accept from Seller, all right, title and interest of Seller in, to
and under the following assets, free and clear of Liens other than Permitted Liens:

          (a) the “Purchased Assets”:

               (i) that certain gathering system, together with all gathering lines, pipelines,
above-ground facilities or structures, compression equipment, the J-T plant, dehydrators,
drips, and the valves, pipes, scrubbers, machinery, gauges, meters, fittings, fixtures,
units, tanks, traps, interconnections, cathodic protection equipment, equipment towers,
field separators, liquids extractors, recorders, storage sheds, pump houses and

12

 

other equipment, fixtures, and improvements related thereto, used or held for use in
Seller’s ownership, operation or maintenance of all or any portion of the gas gathering
system, including those assets set forth on Seller Parties’ Schedule 2.1(a)(i)
(collectively, the “Gathering System”);

               (ii) the real property and easement rights owned or held in connection with the
Gathering System, together with the rights, tenements, easements, licenses, permits,
appendages, appurtenant rights, privileges, rights-of-way, leases, contracts, agreements and
other real property interests related to real property associated with the Gathering System
or by, through or under which the Gathering System is operated, or that is used or held for
use in Seller’s ownership, operation or maintenance of all or any portion of the Gathering
System, including those real property interests and rights set forth on Seller Parties’
Schedule 2.1(a)(ii) (the “Real Property Interests”);

               (iii) all of Seller’s rights and interest under and pursuant to those certain Material
Contracts (including natural gas transportation and gathering services contracts) and other
licenses (including licenses related to the Transferred Intellectual Property, if any) and
agreements, including those agreements set forth on Seller Parties’
Schedule 2.1(a)(iii) (the “Assumed Contracts”);

               (iv) to the extent assignable under applicable Law, those certain Permits, issued to or
held by or on behalf of Seller in connection with Seller’s ownership or operation of the
Assets, including those Permits set forth on Seller Parties’ Schedule 2.1(a)(iv)
(the “Transferred Permits”);

               (v) all items of tangible personal property and equipment owned or held for use by or
on behalf of Seller in connection with Seller’s operation or maintenance of the Assets,
including those items of personal property set forth on Seller Parties’
Schedule 2.1(a)(v) (collectively, the “Personal Property”);

               (vi) all Intellectual Property owned by, or licensed to, Seller and primarily related
to the Assets or necessary for the ownership, operation or maintenance of the Assets,
including the Riverbend Marks, except the Intellectual Property owned by, or licensed to,
Seller and primarily related to that certain Ferguson Beauregard Well Controller Flow Meters
Inventory and the Total Flow Meter Inventory used at the well heads, as more particularly
described on Seller Parties’ Schedule 2.2, and the repeater towers, repeater tower
rights-of-way and access permits (collectively, the “Transferred Intellectual Property”);

               (vii) all existing Records in the possession of or readily available to Seller to the
extent primarily related to the Assets and reasonably necessary for the ownership, operation
or maintenance thereof, including studies and other work product of Sellers or third-parties
related to future applications for rights of way (collectively, the “Transferred Records”)
(provided Seller may deliver copies if originals are not readily available and may retain
copies of any original Transferred Records); and

          (b) the “Salt Water Disposal Assets”:

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               (i) those certain evaporative facilities known as the Desert Spring State Evaporative
Facility and the Eight Mile Flat Evaporative Facility, together with all pipelines,
above-ground facilities or structures and other equipment, fixtures and improvements,
related thereto, used or held for use in Seller’s ownership, operation or maintenance of all
or any portion of the evaporative facilities, including the treatment, disposal and
recycling of wastewater, including those assets set forth on Seller Parties’ Schedule
2.1(b)(i) (collectively, the “Evaporative Facilities”); and

               (ii) the real property and easement rights owned or held in connection with the
Evaporative Facilities, together with the rights, tenements, easements, licenses, permits
(for the commercial use of the Evaporative Facilities), appendages, appurtenant rights,
privileges, rights-of-way, leases, contracts, agreements and other real property interests
related to real property associated with the Evaporative Facilities or by, through or under
which the Evaporative Facilities are operated, or that are used or held for use in Seller’s
ownership, operation or maintenance of all or any portion of the Evaporative Facilities,
including those real property interests and rights set forth on Seller Parties’ Schedule
2.1(b)(ii) (the “Evaporative Facilities Real Property Interests”).

     2.2 Excluded Assets. Any and all assets of Seller not described in
Section 2.1 will be retained by Seller and will not be included in the Assets or sold,
transferred, assigned, conveyed or delivered by Seller to Buyer (the “Excluded Assets”), including
the following assets:

          (a) any and all oil and/or gas leases, unit agreements, rights acquired under farm-in
agreements and other leases (including the Natural Gas Sale/Purchase Contract, dated December 1,
2007, by and between Anadarko Energy Services Company and Seller and the Federal Communications
Commission Wireless Telecommunication Bureau Radio Station Authorization) not specifically assigned
to Buyer pursuant to Section 2.1(a)(i), Section 2.1(a)(ii) or
Section 2.1(a)(iii), as set forth on Seller Parties’ Schedule 2.2, and all rights
associated therewith;

          (b) any and all trade credits, accounts receivable, notes receivable, cash and cash
equivalents with respect to the Assets arising out of Seller’s business and relating to the Assets
prior to the Closing;

          (c) any and all refunds or reimbursements of costs or expenses related to the Assets borne by
Seller prior to the Closing;

          (d) any claim, right or interest of Seller in or to any refund, rebate, abatement or other
recovery for Taxes, together with any interest due thereon or penalty rebate arising therefrom, for
any tax period (or portion thereof) ending on or before the Closing Date;

          (e) any and all personal property that is sold or consumed by Seller prior to the Closing in
the Ordinary Course of Business;

          (f) Seller’s Organizational Documents, duplicate copies of such records included in the Assets
as are necessary to enable Gasco to file its tax returns and reports, and any other records or
materials relating to Seller generally and not involving or relating to the Assets or the business
related to the Assets;

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          (g) any and all insurance policies and rights thereunder of Seller, including refunds of
premiums from any insurance policy of Seller resulting from the transactions contemplated by this
Agreement and rights to cancellation value as of the Closing;

          (h) any and all claims, counterclaims and defenses of Seller against third parties based on
facts or events occurring prior to the Closing with respect to the Assets to the extent reasonably
expected to be necessary to permit Seller to defend against any claim by such third party against
Seller after the Closing based on facts or events occurring prior to the Closing, excluding any
claims, counterclaims or defenses related to Assumed Liabilities and except to the extent Buyer
indemnifies Seller for such third party claim pursuant to Section 7.3;

          (i) any and all Seller Marks;

          (j) all Intellectual Property owned by, or licensed to, Seller other than the Transferred
Intellectual Property, including the Intellectual Property owned by, or licensed to, Seller and
primarily related to that certain Ferguson Beauregard Well Controller Flow Meters Inventory and the
Total Flow Meter Inventory used at the well heads, as more particularly described on Seller
Parties’ Schedule 2.2, and the repeater towers, repeater tower rights-of-way and access
permits;

          (k) that certain Ferguson Beauregard Well Controller Flow Meters Inventory and the Total Flow
Meter Inventory used at the well heads, as more particularly described on Seller Parties’
Schedule 2.2, and the repeater towers, repeater tower rights-of-way and access permits;

          (l) all Employee Benefit Plans and any Liabilities thereunder; and

          (m) those other assets listed on Seller Parties’ Schedule 2.2.

     2.3 Assumption of Liabilities. Upon Closing, Buyer shall assume and be responsible
for the payment, performance or discharge of all Liabilities of Seller resulting from, relating to
or arising out of the Assumed Contracts, the Transferred Permits, the Real Property Interests and
Taxes and charges with respect to the Assets, to the extent related to periods from and after the
Closing, except to the extent any such Liabilities are expressly included as part of the Retained
Liabilities (as defined below) (collectively, the “Assumed Liabilities”).

     2.4 Retained Liabilities. Notwithstanding anything to the contrary in this Agreement,
all Liabilities and obligations relating to, arising out of, or attributable to the ownership or
operation of the Assets prior to the Closing Date, whether presently in existence or arising
hereafter, shall be retained by and remain obligations of Seller (the “Retained Liabilities”). The
Retained Liabilities shall include, without limitation, the following:

          (a) any Damages for which the Seller Parties are obligated to indemnify Buyer pursuant to
Section 7.2;

          (b) any Liability of Seller or any Affiliate of Seller, including any such Liability arising
out of or relating to the EPA Enforcement Action or EPA Consent Decree, which arises out of or
relates to any Excluded Asset;

15

 

          (c) (i) any administrative or civil penalties (but not stipulated penalties) payable to any
Governmental Authority; and (ii) any capital expenditures (including, without limitation, any costs
relating to the purchase, installation and testing of any equipment); in the case of each of clause
(i) and (ii) arising out of or relating to the EPA Enforcement Action or EPA Consent Decree;

          (d) any Liability of Seller or any Affiliate of Seller resulting from the transactions
contemplated by this Agreement, including any expenses incurred by or on behalf of Seller or any
Affiliate of Seller in connection with this Agreement or the consummation of the transactions
contemplated hereby;

          (e) any Liability arising under any Employee Benefit Plan;

          (f) any Liability for Taxes imposed on Seller or imposed with respect to the Assets accruing
to or for any period (or portion thereof) ending on or prior to the Closing Date; and

          (g) any Liability with respect to Property Taxes that are the responsibility of Seller
pursuant to Section 5.16(b).

     2.5 Consideration. In consideration for the sale and purchase
of the Assets contemplated by Section 2.1, at the Closing, Buyer shall pay to Gasco (i) the
Purchased Assets Sale Price minus any amounts then due to Buyer pursuant to Section 2.7(f)
(the “Net Purchased Assets Sale Price”) and, if the Salt Water Disposal Assets are then
transferrable, (ii) the Salt Water Disposal Assets Sale Price in cash by wire transfer of
immediately available funds to an account designated by Gasco.

     2.6 Salt Water Disposal Assets Closing. If the Salt Water Disposal Assets are not
transferred at the Closing, upon the receipt by Buyer of all Permits necessary for the commercial
operation of the Salt Water Disposal Assets as they are currently operated by Seller, Seller shall
sell, assign, transfer, convey and deliver to Buyer, and Buyer will purchase, acquire and accept
from Seller, all right, title and interest of Seller in, to and under the Salt Water Disposal
Assets, free and clear of Liens other than Permitted Liens. In consideration of the sale and
purchase of the Salt Water Disposal Assets, Buyer shall pay to Gasco the Salt Water Disposal Assets
Sale Price in cash by wire transfer of immediately available funds to an account designated by
Gasco (the “Salt Water Disposal Assets Closing”). Seller shall transfer the Salt Water Disposal
Assets by such documents, deed, certificates, instruments or agreements as may be necessary or
appropriate to consummate the transfer contemplated in this Section 2.6, and as may be
reasonably requested by Buyer and agreed to by the Seller Parties prior to the Salt Water Disposal
Assets Closing.

     2.7 Title Defects.

          (a) As soon as reasonably practicable following the date of this Agreement, and in no event
later than sixty (60) days from the date hereof, Buyer shall deliver to Seller written notices
identifying each matter that it believes in good faith to be a Title Defect, together with a good
faith estimate of the associated cost of curing such defect (the “Title Defect Amount”) for each
such alleged Title Defect, and reasonable written documentation, to support

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Buyer’s claims of each such Title Defect (the “Title Defect Notice”); it being understood that
neither the delivery nor cure or resolution of such Title Defect Notice shall be a condition to the
occurrence of the Closing. In order for Seller to review the alleged Title Defects listed in the
Title Defect Notice, Buyer will provide to Seller and its representatives copies of any documents
used to determine the existence of a Title Defect and the estimated cost to cure any Title Defect.
Buyer shall include in the Title Defect Notice only Title Defects that are reasonably believed, in
good faith, to individually cost in excess of $25,000 to cure. For purposes of calculating the
cost of a Title Defect, the Parties shall value (i) rights-of-way at $25 per rod and (ii) surface
leases and fee properties at fair market value.

          (b) If Seller disagrees with the existence of a Title Defect or the associated Title Defect
Amount, then Seller shall notify Buyer of such disagreement in writing (a “Notice of Disagreement”)
within thirty (30) days after its receipt of the applicable Title Defect Notice, it being
understood that neither the delivery nor cure or resolution of such Notice of Disagreement shall be
a condition to the occurrence of the Closing. Such Notice of Disagreement shall specify in
reasonable detail Seller’s grounds for such disagreement, the Title Defect Amount estimated by
Seller therefor, or both, as the case may be. To the extent Seller does not contest a Title Defect
or a Title Defect Amount in a Notice of Disagreement within the time period specified in this
Section 2.7(b), Seller shall be deemed to have accepted the existence of such Title Defect
or Title Defect Amount, which shall be final, binding and conclusive for all purposes hereunder.

          (c) If a Notice of Disagreement is timely provided by Seller, Buyer and Seller shall use
commercially reasonable efforts for a period of thirty (30) days after delivery of such Notice of
Disagreement (or such longer period as they may mutually agree) to resolve any disagreements with
respect to the existence of any Title Defect or Title Defect Amount contested in the Notice of
Disagreement. If, at the end of such period, they are unable to resolve such disagreements, then,
upon the written request of either Party, Seller and Buyer agree that within a further fifteen (15)
day period, they will jointly select an arbitrator who is an attorney experienced in the natural
gas and gas gathering industry in the United States as well as in real estate and title insurance
matters, or as otherwise mutually agreed upon by Seller and Buyer (the “Title Defect Arbitrator”),
to resolve any remaining disagreements. If Seller and Buyer are unable to agree upon the
designation of a Person as a Title Defect Arbitrator, they shall request the American Arbitration
Association to appoint the Title Defect Arbitrator and such Title Defect Arbitrator shall hear all
matters submitted under this Section 2.7(c).

          (d) The Title Defect Arbitrator shall determine as promptly as practicable (but in any event
within thirty (30) days following the date on which such dispute is referred to the Title Defect
Arbitrator) the existence of any alleged Title Defect or the disputed Title Defect Amount, as the
case may require, identified in the Notice of Disagreement and not previously resolved by the
Parties. Each Party shall set forth in writing its position regarding the existence of each
alleged Title Defect and each Title Defect Amount referred to the Title Defect Arbitrator for
resolution, and the Title Defect Arbitrator shall be required to select the position of either one
Party or the other with respect to each such Title Defect or Title Defect Amount, as the case may
require. Each Party shall bear its own expenses and the fees and expenses of its own
representatives and experts in connection with the preparation, review, dispute (if any) and final
determination of any alleged Title Defects. Buyer, on the one hand, and Seller, on the other hand,
shall share equally the costs, expenses and fees of the Title Defect Arbitrator. The

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determination of the Title Defect Arbitrator shall be final, conclusive and binding on the
Parties and shall be enforceable in any court having jurisdiction.

          (e) As used in this Agreement, an “Agreed-Upon Title Defect” shall mean any of (i) a Title
Defect that is not contested under any Notice of Disagreement timely given, (ii) a Title Defect
that is mutually agreed upon by Buyer and Seller or (iii) a Title Defect resulting from a
determination of the Title Defect Arbitrator pursuant to Section 2.7(d) above. The date on
which any Title Defect becomes an Agreed-Upon Title Defect pursuant to the foregoing is referred to
as the “Title Defect Determination Date.” An “Agreed-Upon Title Defect Amount” shall mean any of
(i) a Title Defect Amount that is not contested under any Notice of Disagreement timely given, (ii)
a Title Defect Amount that is mutually agreed upon by Buyer and Seller or (iii) a Title Defect
Amount resulting from a determination of the Title Defect Arbitrator pursuant to
Section 2.7(d) above.

          (f) At Closing the Purchased Assets Sale Price shall be reduced by the aggregate amount of any
Agreed-Upon Title Defect Amount finalized by Closing. After Closing, the Seller shall promptly pay
to Buyer any Agreed-Upon Title Defect Amount finalized after Closing. Buyer understands and agrees
that the Purchased Assets Sale Price adjustment provided in this Section 2.7 is the sole
and exclusive remedy for a Title Defect, and no claim may be made by Buyer with respect to any
representation or warranty made by Seller or any of its affiliates or representatives.
Notwithstanding the provisions of this Section 2.7, the Purchased Assets Sale Price shall
not be decreased by any Agreed-Upon Title Defect Amount unless and until the aggregate Agreed-Upon
Title Defect Amount exceeds $100,000, then only to the extent of such excess, and the maximum
decrease of the Purchased Assets Sale Price pursuant to this Section 2.7 for all Title
Defects shall not exceed $1,000,000.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF THE SELLER PARTIES

     Each of the Seller Parties hereby represents and warrants, jointly and severally, to Buyer as
follows:

     3.1 Organization of the Seller Parties.

          (a) Seller is a limited liability company duly organized and validly existing under the laws
of the State of Nevada, is qualified to do business and is in good standing under the laws of the
States of Nevada and Utah, and has full limited liability company power and right to carry on its
business as such is now being conducted and to own, operate, lease and sell, as contemplated by
this Agreement, the Assets.

          (b) Gasco is a corporation duly incorporated and validly existing under the laws of the State
of Nevada and is qualified to do business and is in good standing under the laws of the State of
Nevada.

     3.2 Authorization; Enforceability. Each of the Seller Parties has all requisite
corporate or limited liability company power and authority, as the case may be, to execute and
deliver this Agreement and each other Transaction Document to which such Seller Party is a party,
to perform all obligations to be performed by such Seller Party hereunder and thereunder,

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and to consummate the transactions contemplated hereby and thereby. The execution and delivery
of this Agreement and each other Transaction Document to which such Seller Party is a party and the
consummation of the transactions contemplated hereby and thereby have been duly and validly
authorized and approved by all requisite corporate or limited liability company, as the case may
be, action on the part of such Seller Party, and no other proceeding on the part of such Seller
Party is necessary to authorize this Agreement or any of the other Transaction Documents to which
such Seller Party is a party. This Agreement and each other Transaction Document to which any
Seller Party is a party, when duly and validly executed and delivered by such Seller Party
(assuming due authorization, execution and delivery by Buyer and any other Persons party thereto)
will constitute legal, valid and binding obligations of such Seller Party, enforceable against such
Seller Party in accordance with their respective terms, subject to applicable bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws affecting creditors’
rights generally and subject, as to enforceability, to general principles of equity (regardless of
whether such enforceability is considered in a Proceeding in equity or at Law).

     3.3 No Conflict; Consents. The execution and delivery by each Seller Party of this
Agreement and each other Transaction Document to which such Seller Party is a party, the
consummation of the transactions contemplated hereby and thereby, and the compliance by such Seller
Party with any of the provisions hereof or thereof, do not and shall not:

          (a) violate any Law applicable to such Seller Party or the Assets in any material respect;

          (b) except as set forth on Seller Parties’ Schedule 3.3(b), require any notice to,
filing with, or need to obtain any material Permit or other material authorization, consent, or
approval of any Governmental Authority (excluding any Permits or other consents or approvals from
any Governmental Authority that are customarily obtained as a matter of routine after Closing);

          (c) violate any Organizational Document of such Seller Party;

          (d) violate or breach any Transferred Permit in any material respect or give rise or result in
the termination or cancellation of any material Transferred Permit;

          (e) except as set forth on Seller Parties’ Schedule 3.3(e), require any notice to,
filing with, or need to obtain any material Permit or other material authorization, consent, or
approval of any Person (other than a Governmental Authority); or

          (f) subject to obtaining the consents set forth on Seller Parties’ Schedule 3.3(b) and
Seller Parties’ Schedule 3.3(e), (i) conflict with, violate, result in a breach of or
constitute a default under any Assumed Contract in any material respect; (ii) result in the
termination or acceleration of, or create in any party the right to accelerate, terminate, modify,
or cancel any Assumed Contract in any material respect; (iii) require any other notice, approval,
or consent under any Assumed Contract in any material respect; (iv) result in the creation of any
Lien (other than a Permitted Lien) under any Assumed Contract in any material respect; or (v)
constitute an event that, after notice or lapse of time or both, would result in any breach,

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termination, or creation of a Lien (other than a Permitted Lien) in connection with any
Assumed Contract in any material respect.

     3.4 Absence of Certain Changes or Events. Except as disclosed on Seller Parties’
Schedule 3.4 or in Gasco’s periodic reports and other forms, together with all information
included or incorporated by reference therein, filed with the Securities and Exchange Commission,
since January 1, 2009 (a) there has not been any event, circumstances or facts that has had or
could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect
on the Assets and (b) the business of Seller related to the Assets has been conducted, in all
material respects, in the Ordinary Course of Business.

     3.5 Assumed Contracts. Except as set forth on Seller Parties’ Schedule 3.5,
each Assumed Contract (a) is in full force and effect and (b) represents the legally valid and
binding obligation of the Seller Party which is a party thereto and, to the Knowledge of the Seller
Parties, represents the legally valid and binding obligation of the other Person(s) party thereto,
in each case enforceable in accordance with its terms. Except as set forth on Seller Parties’
Schedule 3.5, neither Seller Party nor, to the Knowledge of Seller, any other Person(s) party
to any of the Assumed Contracts is in material breach of any Assumed Contract. Except as set forth
on Seller Parties’ Schedule 3.5, Seller Parties have not received any written or oral
notice of termination, breach or other disputes or claims under any Assumed Contract or any other
Material Contract between a Seller Party and a third party that relates to Buyer’s operation of the
Assets.

     3.6 Material Contracts. Except for the Assumed Contracts and those Contracts
disclosed in Seller Parties’ Schedule 3.6, with respect to the ownership or operation of
the Assets, each of the Seller Parties is not a party to or bound by:

          (a) any lease;

          (b) any agreement or contract for the gathering, treating, transportation, processing, or
storage of natural gas or other hydrocarbons;

          (c) any agreement for the purchase or sale of materials, supplies, goods, services, equipment
or other assets;

          (d) any partnership, joint venture, or other similar agreement or arrangement;

          (e) any agreement relating to the acquisition or disposition of any business (whether by
merger, sale of stock, sale of assets, or otherwise);

          (f) any agreement relating to Indebtedness for borrowed money or the deferred purchase price
of property (in either case, whether incurred, assumed, guaranteed or secured by any asset);

          (g) any option, license, franchise, or similar agreement (other than licenses for commercially
available off-the-shelf software involving annual payments of less than $5,000);

          (h) any agreement with respect to any hedging, swap, forward, future or derivative transaction
or option or similar agreement involving, or settled by reference to, one or

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more rates, currencies, commodities, equity or debt instruments or securities, or economic,
financial or pricing indices or measures of economic, financial or pricing risk or value or any
similar transaction or any combination of these transactions;

          (i) any agency, dealer, sales representative, marketing or other similar agreement;

          (j) any agreement that limits the freedom of Seller to compete in any line of business or with
any Person or in any area or to own, operate, sell, transfer, pledge or otherwise dispose of or
encumber any Assets or which would so limit the freedom of Buyer after the Closing Date;

          (k) any agreement with or for the benefit of any Affiliate of the Seller Parties; or

          (l) any other agreement, commitment, or arrangement not made in the Ordinary Course of
Business that is material to the operation of the Assets.

     3.7 Records. All Records of Seller Parties pertaining to the Assets have been
prepared, assembled and maintained in the Ordinary Course of Business. Seller maintains or causes
to be maintained a system of internal accounting controls relating to the Assets sufficient to
provide reasonable assurance that: (a) transactions are accurately recorded in all material
respects; (b) transactions are executed in accordance with management’s specific or general
authorization; and (c) access to its Records is permitted only in accordance with Seller’s standard
practices.

     3.8 Intellectual Property. Seller, together with its Affiliates owns all right, title
and interest in and to the Riverbend Marks and with respect to all other Intellectual Property used
in the operation or maintenance of the Assets as currently conducted, including the Transferred
Intellectual Property, owns or has the right to use pursuant to a license, sublicense or agreement
all such other Intellectual Property. The Transferred Intellectual Property, the Intellectual
Property owned by, or licensed to, Seller and primarily related to that certain Ferguson Beauregard
Well Controller Flow Meters Inventory and the Total Flow Meter Inventory used at the well heads, as
more particularly described on Seller Parties’ Schedule 2.2, and the repeater towers,
repeater tower rights-of-way and access permits, and know-how generally used in the oil and gas
industry, includes all Intellectual Property that is necessary for the ownership, operation or
maintenance of the Assets and there exists no material restrictions on the disclosure, use, license
or transfer of the Transferred Intellectual Property. To the Knowledge of the Seller Parties, (a)
in the last twelve (12) months, no third party has asserted in writing against any Seller Party a
claim that it is infringing on or misappropriating the Intellectual Property of such third party
and (b) no third party is infringing on or misappropriating the Transferred Intellectual Property.

     3.9 Litigation. Except as set forth on Seller Parties’ Schedule 3.9, as of
the Effective Date, there are no (a) Proceedings before any Governmental Authority or arbitration
body pending or, to the Knowledge of the Seller Parties, threatened in writing by any Person
against either of the Seller Parties with respect to the Assets or Seller’s ownership, use or
operation of

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the Assets or (b) Orders or unsatisfied judgments from any Governmental Authority binding upon
the Seller Parties relating to the Assets.

     3.10 Brokers’ Fees. Except for the amounts payable by the Seller Parties to J.P.
Morgan Securities Inc. pursuant to the engagement letter dated as of May 14, 2009, by and between
Gasco and J.P. Morgan Securities Inc., there is no broker, finder, investment banker or other
Person who might be entitled to any brokerage fee, finders’ fee or other commission in connection
with the transactions contemplated by this Agreement based upon arrangements made by the Seller
Parties or any their Affiliates.

     3.11 Taxes. Except as set forth on Seller Parties’ Schedule 3.11 (a) all
material Tax Returns required to be filed by the Seller Parties related to the Assets have been
filed; (b) all Taxes shown as due on such Tax Returns have been paid; (c) there are no material
Liens (other than Permitted Liens) on any of the Assets that arose in connection with any failure
to pay any Tax by the Seller Parties; (d) there is no claim pending by any Governmental Authority
in connection with any Tax directly related to the Assets; (e) no Tax Returns of the Seller Parties
directly related to the Assets are under audit or examination by any Governmental Authority; (f)
there are no agreements or waivers currently in effect that provide for an extension of time with
respect to the filing of any Tax Return by the Seller Parties related to the Assets or the
assessment or collection of any Tax related to the Assets and (g) to the Knowledge of the Seller
Parties, no written claim has been made by any Governmental Authority in a jurisdiction where a
Seller Party does not file a Tax Return directly related to the Assets that it is or may be subject
to taxation in that jurisdiction.

     3.12 Environmental Matters. Except as set forth on Seller Parties’ Schedule
3.12, including with respect to that certain EPA enforcement action more particularly described
thereon (the “EPA Enforcement Action”),

          (a) (i) The Assets and, in connection with the Assets, each Seller Party and Affiliate
thereof, are and have been in compliance with all Environmental Laws in all material respects,
which compliance includes the possession and maintenance of, and compliance with, all material
Environmental Permits required for the ownership or operation of the Assets and all such
Environmental Permits are in full force and effect; (ii) none of the Environmental Permits will be
terminated or impaired, in whole or in part, by its terms or by operation of Environmental Law as a
result of the transactions contemplated hereby or by the Transaction Documents; and (iii) the
Transferred Permits include all material Environmental Permits necessary for the ownership and
operation of the Assets;

          (b) Neither the Assets nor, in connection with the Assets, any Seller Party or Affiliate
thereof, is subject to any outstanding Order or unsatisfied judgment issued by, award from, or
settlement with any Governmental Authority or any other third party under or relating to any
Environmental Laws or Constituents of Concern, including any such Order, unsatisfied judgment,
award or settlement that would require any Remedial Action or the incurrence of any Environmental
Costs and Liabilities;

          (c) In connection with the Assets, no Seller Party, nor any Affiliate thereof, is subject to
any Proceeding or review that is pending or, to the Knowledge of the Seller Parties,

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threatened, has received any notice, notification, demand, request for information, citation,
summons or complaint, or has been assessed any fine or penalty, in each case alleging or relating
to any noncompliance with or potential liability under or relating to any Environmental Law,
Environmental Permit or Constituents of Concern;

          (d) All (i) environmental reports relating to the Assets, or the ownership or operation
thereof, prepared by or at the direction of or which is in the possession of a Seller Party or its
Affiliates, (ii) correspondence of any Seller Party or its Affiliates with any Governmental
Authority or any other third party addressing environmental matters relating to the Assets, or the
ownership or operation thereof, and (iii) other material environmental Records maintained in the
Ordinary Course of Business or otherwise required to be maintained by applicable Environmental
Laws, as set forth on Seller Parties’ Schedule 3.12, have been made available for Buyer’s
inspection; and all environmental Records of the Seller Parties pertaining to the Assets have been
prepared, assembled and maintained in the Ordinary Course of Business;

          (e) There is and has been no exposure of any Person or property to, or any release, discharge,
disposal, dumping, injection, pumping, deposit, spill or emission of, Constituents of Concern at,
on, under or in connection with the Assets, or the ownership or operation thereof, that would
reasonably be expected to result in any Environmental Costs and Liabilities;

          (f) There are no Liabilities arising in connection with or in any way relating to the Assets
or, in connection with the Assets, any Seller Party or Affiliate thereof, arising under or relating
to any Environmental Law or Constituents of Concern;

          (g) No polychlorinated biphenyls, radioactive material (other than naturally occurring
radioactive material), lead-based paint, asbestos, asbestos-containing material, incinerator (other
than air pollution control equipment), sump, surface impoundment, landfill, septic system, or
underground storage tank (active or inactive) is or has been present at, on or under any Asset;

          (h) No Asset and no property at which Constituents of Concern have been disposed or
transported, directly or indirectly, by any Seller Party or Affiliate thereof, in connection with
any Asset, is listed or, to the Knowledge of the Seller Parties, proposed for listing on any
federal, state, local or foreign list of sites requiring investigation or cleanup; and

          (i) The wetlands investigation by the United States Army Corps of Engineers and United States
Environmental Protection Agency into the Seller Parties’ activities on the Lamb Trust site in
Uintah County, Utah relates solely to the Excluded Assets and does not relate to or in any way
affect any Asset.

          (j) The execution and delivery by each Seller Party of this Agreement and each other
Transaction Document to which such Seller Party is a party, the consummation of the transactions
contemplated hereby and thereby, and the compliance by such Seller Party with any of the provisions
hereof or thereof, do not and shall not: (i) violate any Environmental Law applicable to such
Seller Party or the Assets in any material respect; (ii) require any notice to, filing with, or
need to obtain any material Environmental Permit or other material authorization,

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consent, or approval of any Governmental Authority (excluding any Environmental Permits or
other consents or approvals from any Governmental Authority that are customarily obtained as a
matter of routine after Closing); (iii) violate or breach any Environmental Permit in any material
respect or result in the termination or cancellation of any material Environmental Permit by the
terms of such permit or by operation of Environmental Law; or (iv) require any notice to, filing
with, or need to obtain any material Environmental Permit or other material authorization, consent,
or approval of any Person (other than a Governmental Authority);

          (k) Except as disclosed in Gasco’s periodic reports and other forms, together with all
information included or incorporated by reference therein, filed with the Securities and Exchange
Commission, since January 1, 2009 (i) there has not been any event, circumstance or fact relating
to compliance with or Liability under any Environmental Law that has had or could reasonably be
expected to have, individually or in the aggregate, a Material Adverse Effect on the Assets, and
(ii) the business of Seller relating to compliance with or Liability under any Environmental Law
with respect to the Assets has been conducted, in all material respects, in the Ordinary Course of
Business;

          (l) Neither Seller Party nor, to the Knowledge of Seller, any other Person(s) party to any of
the Assumed Contracts is in material breach of any provision of any Assumed Contract relating to
any Environmental Law, Constituents of Concern or any other environmental matter and (ii) Seller
Parties have not received any written or oral notice of termination, breach or other disputes or
claims under any Assumed Contract or any other Material Contract between a Seller Party and a third
party relating to a provision of such Assumed Contract or Material Contract relating to any
Environmental Law, Constituents of Concern or any other environmental matter;

          (m) With respect to ownership or operation of the Assets, each of the Seller Parties is not a
party to or bound by any agreement, commitment, or arrangement not made in the Ordinary Course of
Business that (x) is material to the operation of the Assets and (y) relates to any Environmental
Law, Constituents of Concern or any other environmental matter;

          (n) Seller Parties’ Schedule 3.14 contains a summary description of all material
insurance policies providing pollution legal liability, environmental impairment and any other
environmental insurance coverage held by or for the benefit of Seller Parties that relate to the
Assets as of the Effective Date. There is no material claim by either of the Seller Parties under
any such policies to which coverage has been questioned, disputed or denied by the underwriters or
issuers of such policies nor has any denial of coverage or reservation of rights notice been given
by any such underwriter or issuer with respect to a claim that is still pending. All premiums due
and payable thereon under such policies have been timely paid and the Seller Parties have otherwise
complied in all material respects with the terms and conditions thereof. Such policies have been
in effect since January 1, 2006, are in full force and effect as of the date hereof and will remain
in full force and effect as of the Closing Date. Such policies are, to the Knowledge of the Seller
Parties, of the type and in amounts customarily carried by Persons conducting operations similar to
the operation of the Assets. To the Knowledge of the Seller Parties, there is no threatened
termination of, or material alteration of coverage under, any such policies. After Closing, Seller
Parties shall have coverage under such policies with respect to events occurring prior to the
Closing;

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          (o) Seller Parties’ Schedule 3.22 identifies all Guarantees relating to any
Environmental Law, Constituents of Concern, or any other environmental matter and relating to the
Assets;

          (p) Notwithstanding any provision in this Agreement to the contrary, this Section 3.12
shall be the exclusive representations and warranties with respect to Environmental Laws,
Constituents of Concern, and any other environmental matter, and no other representations or
warranties are made with respect to such matters.

     3.13 Compliance with Laws; Permits.

          (a) Except as set forth on Seller Parties’ Schedule 3.13 or otherwise disclosed in
this Agreement, each of the Seller Parties is and has been since January 1, 2007 in material
compliance with all applicable Laws related to it. Seller owns and operates the Assets in material
compliance with all applicable Laws related to the Assets. Notwithstanding the foregoing or any
other provision of this Agreement to the contrary, this Section 3.13 does not address
compliance with Laws relating to Tax, Environmental, Employment and Labor or Employee Benefits
matters, which matters are addressed solely by Section 3.11, Section 3.12,
Section 3.3, Section 3.20 and Section 3.21, respectively, and no other
representations or warranties are made with respect to such matters, including pursuant to this
Section 3.13.

          (b) The Transferred Permits include all material Permits (other than Intellectual Property
licenses) necessary for the ownership and operation of the Assets as currently conducted. Except
as set forth on Seller Parties’ Schedule 3.13, (i) all such Transferred Permits are in full
force and effect; (ii) Seller is not in material violation or default of or material conflict with,
and no condition exists that with notice or lapse of time or both would constitute a violation,
default or conflict with or under, any material Transferred Permit; and (iii) there are no
Proceedings pending or threatened in writing before any Governmental Authority that seek the
revocation, cancellation, suspension or adverse modification of any material Transferred Permit;
and (iv) none of the Permits will be terminated or impaired or become terminable, in whole or in
part, as a result of the transactions contemplated hereby or by the Transaction Documents.

     3.14 Insurance. Seller Parties’ Schedule 3.14 contains a summary
description of all material policies of property, fire and casualty, product liability, workers’
compensation and other insurance held by or for the benefit of Seller Parties that relate to the
Assets as of the Effective Date. There is no material claim by either of the Seller Parties under
any such policies or bonds to which coverage has been questioned, disputed or denied by the
underwriters or issuers of such policies or bonds nor has any denial of coverage or reservation of
rights notice been given by any such underwriter or issuer with respect to a claim that is still
pending. All premiums due and payable thereon under such policies and bonds have been timely paid
and the Seller Parties have otherwise complied in all material respects with the terms and
conditions thereof. Such policies and bonds have been in effect since January 1, 2006, are in full
force and effect as of the date hereof and will remain in full force and effect as of the Closing
Date. Such policies and bonds are, to the Knowledge of the Seller Parties, of the type and in
amounts customarily carried by Persons conducting operations similar to the operation of the
Assets. To the Knowledge of the Seller Parties, there is no threatened termination of, or material
alteration

25

 

of coverage under, any such policies and bonds. After Closing, Seller Parties shall have
coverage under such policies and bonds with respect to events occurring prior to the Closing.

     3.15 Condition of Assets, Sufficiency and Conveyance of Title.

          (a) Except as set forth on Seller Parties’ Schedule 3.15, the Assets that are tangible
assets are in good repair, working order and operating condition, subject to normal wear and tear.

          (b) The Purchased Assets constitute all of the property and assets used or held for use by
Seller and its Affiliates in connection with the operation of the Gathering System and are adequate
to operate the Gathering System as currently operated.

          (c) All Real Property Interests are valid and enforceable, except as the enforceability
thereof may be affected by bankruptcy, insolvency or other Laws of general applicability affecting
the rights of creditors generally or principles of equity. The Real Property Interests grant the
rights purported to be granted thereby and all rights necessary thereunder for the operation of the
Assets as currently conducted. There are no gaps in the Real Property Interests, other than gaps
that would not reasonably be expected to impair the business or operation of the Assets as
currently conducted, and no part of the material tangible Assets are located on property that is
not subject to a Real Property Interest included in the Assets.

          (d) Seller has, as of the date hereof, and will, as of the Closing Date, sell, transfer,
assign and convey to Buyer, good and valid title to and rights and interests in the Assets, free
and clear of all Liens, other than Permitted Liens, Title Defects, if any, and Liens which will be
discharged on or before the Closing Date.

     3.16 Solvency of the Seller Parties. Immediately after giving effect to the
transactions contemplated by this Agreement, (i) no Seller Party nor any Subsidiary of a Seller
Party will have incurred debts beyond its ability to pay such debts as they mature or become due,
(ii) the then present fair salable value of the assets of each of the Seller Parties and their
respective Subsidiaries will exceed the amount that will be required to pay its probable
liabilities (including the probable amount of all contingent liabilities) and its debts as they
become absolute and matured, (iii) the assets of each of the Seller Parties and their respective
Subsidiaries, in each case at a fair valuation, will exceed its respective debts (including the
probable amount of all contingent liabilities) and (iv) none of each of the Seller Parties and
their respective Subsidiaries will have unreasonably small capital to carry on its business as
presently conducted or as proposed to be conducted. No transfer of property is being made and no
obligation is being incurred in connection with the transactions contemplated by this Agreement
with the intent to hinder, delay or defraud either present or future creditors of any Seller Party
or its Subsidiaries. No Seller Party nor any of its Subsidiaries currently intends to (a)
institute, consent to the institution of, or request institution of any voluntary case or
proceeding under any provision or chapter of the Bankruptcy Code or (b) institute, consent to, or
request the institution of any proceeding under any other similar foreign, federal or state law
relating to insolvency, bankruptcy, rehabilitation, liquidation, winding up or reorganization or
seek any arrangement, adjustment, protection, relief or composition of its debts, or make a general
assignment for the benefit of its creditors.

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     3.17 Auction Process. The auction process that the Seller Parties structured for the
sale of the Assets was reasonably customary for a transaction of this sort involving, among other
things, making confidential data and Seller Parties’ management teams available to those bidders to
inform them about the Assets. Based on the conduct and outcome of that auction, Seller Parties
believe that this auction process was reasonably designed to realize the highest possible value
attainable for the Assets based on current market conditions.

     3.18 Natural Gas and Natural Gas Liquids Imbalances. To the Knowledge of the Seller
Parties, there do not exist any natural gas or natural gas liquid imbalances (production,
gathering, processing, transportation or otherwise) which are associated with the Assets.

     3.19 Preferential Rights. Except as set forth on Seller Parties’ Schedule
3.19, no third party holds a preferential right to purchase any Asset.

     3.20 Employment and Labor Matters.

          (a) Seller Parties’ Schedule 3.20(a) contains a true and complete list of (i) all
employees that perform services primarily related to the Gathering System who are available for
hire by Buyer (the “Employees”), and their positions, (ii) the amount of current monthly salary or
hourly rate, as applicable, of each such Employee, (iii) the date of hire of each such Employee and
(iv) any benefits or other compensation to which each such Employee is entitled.

          (b) No Seller Party has agreed to recognize any labor union or other collective bargaining
representative as the representatives of any Employee and, to the Knowledge of Seller Parties, no
labor union or other collective bargaining representative claims to or is seeking to represent any
Employee. To the Knowledge of Seller Parties, no union organizational campaign or representation
petition is currently pending with respect to any Employee.

          (c) Except as set forth on Seller Parties’ Schedule 3.20(c), neither of the Seller
Parties nor any of their respective Affiliates or Subsidiaries is a party to or bound by any
collective bargaining agreement, other labor contract or individual agreement applicable to any of
the Employees. No collective bargaining agreements, other labor contract or individual agreements
relating to any of the Employees are being negotiated.

          (d) There is no labor strike or labor dispute, slow down, lockout or stoppage actually pending
or, to the Knowledge of Seller Parties, threatened against or affecting the Employees or the
Assets, and the Seller Parties have not experienced any labor strikes or material labor disputes,
slowdowns, lockouts or stoppages with relating to the Assets. Seller Parties are not engaged, nor
have engaged, in any unfair labor practices, and have not had any unfair labor practice charges or
complaints before any Governmental Authority pending or, to the Knowledge of Seller, threatened
against the Seller Parties relating to the Employees.

          (e) Except as set forth on Seller Parties’ Schedule 3.20(c), no Employee is a party to
any employment agreement or other Contract or subject to any requirement that is, in any way,
inconsistent with such Employee’s possible future status with Buyer as an employee-at-will who may
be terminated at any time without cause or notice, except as otherwise provided by applicable Law.

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          (f) As of the Effective Date, neither Buyer nor any of the Seller Parties had any
communication with the Employees regarding any offers of employment with Buyer.

Notwithstanding any provision in this Agreement to the contrary, this Section 3.20 shall be
the exclusive representations and warranties with respect to Employment and Labor matters, and no
other representations or warranties are made with respect to such matters, including pursuant to
Section 3.13.

     3.21 Employee Benefits Matters. Set forth on Seller Parties’ Schedule
3.21(a), as of the Effective Date, is a list of all Employee Benefit Plans.

          (b) Neither the Seller nor, to the Knowledge of the Seller, any ERISA Affiliate, maintains,
contributes to, or has any liability or obligation to contribute to, or has, within the last six
(6) years preceding the Closing Date, ever maintained, contributed to, or had any liability or
obligation to contribute to: (i) any Employee Benefit Plan that is subject to the minimum funding
requirements of Section 412 of the Code or Title IV of ERISA or (ii) any “multi-employer plan,”
within the meaning of Section 3(37) or Section 4001(a)(3) of ERISA.

          (c) True, correct and complete copies of each of the Employee Benefit Plans have been
furnished or made available to Buyer and/or its representatives.

Notwithstanding any provision in this Agreement to the contrary, this Section 3.21 shall be
the exclusive representations and warranties with respect to Employee Benefits matters, and no
other representations or warranties are made with respect to such matters, including pursuant to
Section 3.13.

     3.22 Guarantees. Except as set forth on Seller Parties’ Schedule 3.22, there
are no Guarantees.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF BUYER

     Buyer hereby represents and warrants to the Seller Parties as follows:

     4.1 Organization of Buyer. Buyer is a limited liability company, duly formed and
validly existing under the laws of the State of Delaware and is qualified to do business and is in
good standing under the laws of the State of Delaware.

     4.2 Authorization; Enforceability. Buyer has all requisite power and authority to
execute and deliver this Agreement and each other Transaction Document to which Buyer is a Party,
to purchase the Assets on the terms described herein and to perform all obligations to be performed
by Buyer hereunder and thereunder, and to consummate the transactions contemplated hereby and
thereby. The execution and delivery of this Agreement and each other Transaction Document to which
Buyer is a Party and the consummation of the transactions contemplated hereby and thereby have been
duly and validly authorized and approved by all action required on the part of Buyer, and no other
proceeding on the part of Buyer is necessary to authorize this
Agreement or any of the other Transaction Documents to which Buyer is a party. This Agreement
and each other Transaction Document to which Buyer is a party, when duly and

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validly executed and
delivered by Buyer (assuming due authorization, execution and delivery by the Seller Parties and
any other Persons party thereto) will constitute legal, valid and binding obligations of Buyer,
enforceable against Buyer in accordance with their respective terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar Laws
affecting creditors’ rights generally and subject, as to enforceability, to general principles of
equity (regardless of whether such enforceability is considered in a Proceeding in equity or at
Law).

     4.3 No Conflict; Consents. The execution and delivery by Buyer of this Agreement and
each other Transaction Document to which Buyer is a party, the consummation of the transactions
contemplated hereby and thereby, and the compliance by Buyer with any of the provisions hereof or
thereof, do not and shall not:

          (a) violate any Law applicable to Buyer in any material respect;

          (b) except as set forth on Buyer’s Schedule 4.3(b), require any notice to or filing
with, or need to obtain any material Permit or other material authorization, consent, or approval
of any Governmental Authority (excluding any Permits or other consents or approvals from any
Governmental Authority that is customarily obtained as a matter of routine after Closing);

          (c) violate any Organizational Document of Buyer;

          (d) except as set forth on Buyer’s Schedule 4.3(d), require any notice to or filing
with, or need to obtain any material Permit or other material authorization, consent, or approval
of any Person (other than a Governmental Authority); or

          (e) subject to obtaining the consents set forth on Buyer’s Schedule 4.3(b) or
Buyer’s Schedule 4.3(d), (i) conflict with, violate, result in a breach of or constitute a
default under, (ii) result in the termination or acceleration of, or create in any party the right
to accelerate, terminate, modify or cancel any, or (iii) require any notice, approval or consent
under, any Contract, Permit or other arrangement to which Buyer is a party or by which Buyer or its
properties or assets are bound, in each case, in any material respect.

     4.4 Litigation. Except as set forth on Buyer’s Schedule 4.4, as of the
Effective Date, there are no (a) Proceedings before any Governmental Authority or arbitration body
pending or, to the Knowledge of Buyer, threatened in writing by any Person against Buyer or (b)
Orders or unsatisfied judgments from any Governmental Authority binding upon Buyer.

     4.5 Brokers’ Fees. Except as disclosed on Buyer’s Schedule 4.5, there is no
broker, finder, investment banker or other Person who might be entitled to any brokerage fee,
finders’ fee or other commission in connection with the transactions contemplated by this Agreement
based upon arrangements made by Buyer or any of its Affiliates. No Person other than Buyer has any
liability or obligations for any costs or expenses related to Buyer’s engagement of the parties, if
any, set forth on Buyer’s Schedule 4.5.

     4.6 Solvency of the Buyer. Immediately after giving effect to the transactions
contemplated by this Agreement, (i) neither Buyer nor any Subsidiary of Buyer will have

29

 

incurred
debts beyond its ability to pay such debts as they mature or become due and (ii) none of Buyer nor
its respective Subsidiaries will have unreasonably small capital to carry on its business as
presently conducted or as proposed to be conducted. No transfer of property is being made and no
obligation is being incurred in connection with the transactions contemplated by this Agreement
with the intent to hinder, delay or defraud either present or future creditors of Buyer or its
Subsidiaries. Neither Buyer nor any of its Subsidiaries currently intends to (a) institute,
consent to the institution of, or request institution of any voluntary case or proceeding under any
provision or chapter of the Bankruptcy Code or (b) institute, consent to, or request the
institution of any proceeding under any other similar foreign, federal or state law relating to
insolvency, bankruptcy, rehabilitation, liquidation, winding up or reorganization or seek any
arrangement, adjustment, protection, relief or composition of its debts, or make a general
assignment for the benefit of its creditors.

     4.7 Financial Ability. At the Closing, Buyer will have funds sufficient to (i) pay
the Purchased Assets Sale Price and, if the Salt Water Disposal Assets are then transferrable, the
Salt Water Disposal Assets Sale Price, and any other expenses incurred by Buyer in connection with
this Agreement and (ii) fund the consummation of the transactions contemplated by this Agreement.

ARTICLE V

COVENANTS

     5.1 Satisfaction of Conditions Precedent. From the Effective Date until the earlier
of the Closing or the termination of this Agreement in accordance with ARTICLE VIII hereto,
each Party will use all Reasonable Efforts to take all action and to do all things necessary,
proper or advisable in order to consummate and make effective the transactions contemplated by this
Agreement, including the satisfaction of the applicable conditions to Closing set forth in
ARTICLE VI hereto.

     5.2 Conduct of Business, Operation of Assets.

          (a) From the Effective Date until the earlier of the Closing or the termination of this
Agreement in accordance with ARTICLE VIII hereto, Seller shall, and Gasco shall cause
Seller to, operate its business solely as it relates to the Assets in the Ordinary Course of
Business and, without limiting the generality or effect of the foregoing, Seller will and Gasco
will cause Seller to use its Reasonable Efforts to preserve intact, in all material respects, its
business solely as it relates to the Assets.

          (b) Without limiting the generality or effect of Section 5.2(a), prior to the Closing,
Seller shall not, and Gasco shall cause Seller not to, take any action to:

          (i) liquidate, dissolve, recapitalize or otherwise wind up its business solely as it
relates to the Assets;

          (ii) change its accounting methods, policies or practices, in each case solely as they
relate to the Assets, except as required by applicable Law;

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          (iii) sell, assign, transfer, lease, grant or otherwise dispose of any material right
to any Person regarding the Assets;

          (iv) create, incur or assume any Lien on any Asset, other than Permitted Liens or any
Liens that are satisfied and released by Seller prior to the Closing;

          (v) enter into any agreement or arrangement with respect to the Assets that would,
after the Closing Date, limit or otherwise restrict (1) the operation of the Assets by Buyer
or any of its Affiliates or any successor thereto or (2) Buyer or any of its Affiliates from
engaging or competing in any line of business, in any location, with any Person;

          (vi) enter into, amend, modify, waive, release or assign any rights or obligations
under any Assumed Contract, other than in the Ordinary Course of Business, or terminate any
Assumed Contract before the expiration of the terms thereof, other than to the extent any
such Assumed Contract terminates pursuant to its terms in the Ordinary Course of Business;

          (vii) settle, or propose to settle, (i) any litigation, investigation, arbitration,
proceeding or other claim involving or against the Assets or (ii) any litigation,
arbitration proceeding or dispute that relates to the transactions contemplated hereby;

          (viii) engage in any practice or take any action that would cause or result in, or
permit by inaction, any of the representations and warranties contained in ARTICLE
III to become untrue; or

          (ix) agree, whether in writing or otherwise, to do any of the foregoing.

     5.3 Access and Information.

          (a) From the date hereof through the Closing, Seller shall, and Gasco shall cause Seller to,
afford to Buyer and its authorized Representatives reasonable access, during normal business hours
and in such manner as not to unreasonably interfere with normal operation of the business, to the
properties, books, contracts, records and appropriate management and employees of Seller related to
the Assets, and shall furnish such authorized Representatives with all financial and operating data
and other information concerning the Assets as Buyer and such Representatives may reasonably
request, provided that Buyer and its authorized Representatives will not request information, or
otherwise contact, any officer director or employee of Seller without arranging such contact with
King Grant, Gasco’s Executive Vice President and Chief Financial Officer, or David Smith, Gasco’s
Manager of Land and Regulatory Affairs. Seller shall have the right to have a Representative
present at all times during any such inspections, interviews and examinations. Additionally, to
the extent required by Section 5.4, Buyer shall hold in confidence all such information
obtained from the Seller Parties. Notwithstanding the foregoing, Buyer shall have no right of
access to, and Seller shall have no obligation to provide to Buyer, information relating to (a)
bids received from others in connection with the transactions contemplated by this Agreement (or
similar transactions) and information and analyses (including financial analyses) relating to such
bids; (b) any information (other than information relating to the EPA Enforcement Action) the
disclosure of which would jeopardize

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any privilege available to Seller relating to such information or that would cause Seller to
breach a confidentiality obligation; or (c) any information that the Seller Parties are legally
prohibited from supplying or the disclosure of which would result in a violation of Law.

          (b) On and after the Closing Date, Seller will, and Gasco will cause Seller to, afford
promptly to Buyer and its agents reasonable access to its books of account, financial and other
Records (including accountant’s work papers), information, employees and auditors to the extent
necessary or useful for Buyer in connection with any audit, investigation, dispute or litigation or
any other reasonable business purpose relating to the Assets; provided that any such access by
Buyer shall not unreasonably interfere with the conduct of the business of Seller.

     5.4 Confidentiality. All terms and provisions of this Agreement, any information
obtained in due diligence or in the review of title, or any other information obtained from the
Seller Parties shall be maintained as confidential by Buyer, its Affiliates, and their respective
Representatives, and shall not be disclosed to any Person without the prior written consent the
Seller Parties, which consent may be withheld in its sole discretion; provided, however, that no
consent shall be required for any disclosure to the extent such is required to comply with
applicable Laws; provided further, that the foregoing shall not apply to information that can be
shown to have been (i) previously known on a nonconfidential basis by Buyer, (ii) in the public
domain through no action of Buyer and through disclosure by sources not known by Buyer to be
subject to disclosure restrictions, or (iii) later lawfully acquired by Buyer from sources not
known by Buyer to be subject to obligations of confidentiality to a Seller Party. The Seller
Parties agree that after the Closing Date, all confidential documents and information concerning
the Assets shall be maintained in confidence and shall not be divulged by the Seller Parties, their
respective Representatives, their respective Affiliates or the Representatives of their respective
Affiliates to any Person unless and until (x) they shall become public knowledge (other than by
disclosure in breach of this Section 5.4), (y) required by applicable Laws, including
applicable securities laws and regulations, or (z) later lawfully acquired by a Seller Party from
sources not known by such Seller Party to be subject to obligations of confidentiality to Buyer. In
the event that any such confidential information must be disclosed by Buyer or the Seller Parties
to comply with applicable Laws, Buyer or the Seller Parties shall provide the other Party with
prompt prior notice so that the other Party may seek a protective order or other appropriate
remedy. If such protective order or other remedy is not obtained, Buyer or the Seller Parties will
furnish only that portion of the information which is legally required, and Buyer or the Seller
Parties will cooperate with the other Party’s counsel to enable the other Party to obtain a
protective order or other reliable assurance that confidential treatment will be accorded the same.
The obligation of each Party to hold any information in confidence shall be satisfied if such
Party exercises the same care with respect to such information as such Party would take to preserve
the confidentiality of such Party’s own similar information.

     5.5 Non-Consent Contracts. If the Parties fail to obtain any authorization, consent,
approval or waiver (including those listed on Seller Parties’ Schedule 3.3(b), Seller
Parties’ Schedule 3.3(e), Buyer’s Schedule 4.3(b) and Buyer’s Schedule 4.3(d))
needed for the consummation of the transactions contemplated by this Agreement and the other
Transaction Documents, or if any such consent, approval or waiver is otherwise not in full force
and effect as of the Closing, then, in the case of each Assumed Contract as to which such consent,
approval or waiver was not obtained (or otherwise is not in full force and effect) (the
“Non-Consent

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Contracts”), notwithstanding anything to the contrary in this Agreement, neither this
Agreement, nor any of the other Transaction Documents, nor any other document related to the
consummation of the transactions contemplated hereby shall constitute a sale, assignment,
assumption, transfer, conveyance or delivery or an attempted sale, assignment, assumption,
transfer, conveyance or delivery of the Non-Consent Contracts, and, following the Closing, the
Parties shall cooperate with each other to obtain the consent, approval or waiver relating to each
Non-Consent Contract. Pending the obtaining of such consent, approval or waiver relating to any
Non-Consent Contract, the Parties shall cooperate with each other in any reasonable and lawful
arrangements designed to provide to Buyer the benefits and burdens of use of each Non-Consent
Contract for its term (or any right, benefit, obligation or duty arising thereunder, including the
enforcement for the benefit of Buyer of any and all rights of the Seller Parties or their
Affiliates against any Person thereunder). After the consent, approval or waiver for the sale,
assignment, assumption, transfer, conveyance and delivery of a Non-Consent Contract is obtained,
the Seller Parties shall promptly assign, transfer, convey and deliver such Non-Consent Contract to
Buyer, and Buyer shall assume the obligations under such Non-Consent Contract assigned to Buyer
from and after the date of assignment to Buyer pursuant to a separate assignment and assumption
agreement substantially similar in terms to those of the Assignment and Assumption Agreement (which
separate agreement the parties shall prepare, execute and deliver in good faith at the time of such
transfer, all at no additional cost to Buyer).

     5.6 Preferential Rights and Third Party Consents. Seller will, and Gasco will cause
Seller to, request, from the appropriate parties (and in accordance with the documents creating
such rights and/or requirements), waivers of any preferential rights to purchase or other
requirements of consent to assignment. Seller shall have no obligation hereunder other than to so
request waivers, and if any such waiver is not obtained, Buyer may treat any waiver with respect to
Real Property Interests which is not obtained as a Title Defect; provided that if the unobtained
waiver is a waiver of a preferential right to purchase and such necessary waiver of the
preferential right is obtained or the period to exercise such right expires before the Closing
Date, such waiver shall not be considered a Title Defect.

     5.7 Casualty Loss. If, after the date hereof and prior to the Closing Date, all or
any part of the Assets shall be damaged or destroyed by explosion, fire or other casualty
(“Casualty Losses”), and if the Closing occurs, each of the Seller Parties shall pay to Buyer all
sums paid to such Seller Party by third parties (including under any insurance policies) by reason
of such Casualty Loss, and such Seller Party shall assign, transfer and set over unto Buyer all of
the right, title and interest of such Seller Party in and to any unpaid awards or other payments
from third parties (including under any insurance policies) arising out of such Casualty Loss, in
all cases less (i) any amounts received by such Seller Party under business interruption insurance
policies with respect to all periods on or prior to the Closing Date and (ii) any amount incurred
by Seller to restore the affected property or protect it against further damage or loss. Seller
shall, and Gasco shall cause Seller to, also pay to Buyer upon receipt all sums paid to Seller by
third parties (including under any insurance policies) with respect to business interruption for
all periods after the Closing Date. Seller shall, and Gasco shall cause Seller to, indemnify and
hold harmless Buyer to the extent provided in Section 7.2(a) against any Casualty Losses
not paid or otherwise reimbursed to Buyer pursuant to this Section 5.7. Seller shall not,
and Gasco shall cause Seller not to, voluntarily compromise, settle or adjust any amounts payable
with respect to

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insurance relating to such Casualty Loss without the prior written consent of Buyer, which
shall not be unreasonably withheld, delayed or conditioned.

     5.8 Seller Marks. Buyer shall obtain no right, title, interest, license or any other
right whatsoever to use the term “Gasco” or any trademarks, service marks, slogans or logos
containing or comprising the foregoing, or any trademark, service mark, slogan or logo confusingly
similar thereto or dilutive thereof (collectively, the “Seller Marks”). From and after the
Closing, Buyer agrees that it shall (a) cease using the Seller Marks in any manner, directly or
indirectly, except for such limited uses as cannot be terminated within a reasonable time period
(e.g., signage, e-mail addresses, and as a referral or pointer to the acquired website), and to
cease such limited usage of the Seller Marks and (b) remove, strike over or otherwise obliterate
all Seller Marks from all Assets, in each case within a reasonable time period after the Closing
and in any event within one hundred-twenty (120) days following the Closing Date. The Parties
agree, because damages would be an inadequate remedy, that a Party seeking to enforce this
Section 5.8 shall be entitled to seek specific performance and injunctive relief as
remedies for any breach thereof in addition to other remedies available at law or in equity. This
covenant shall survive indefinitely without limitation as to time.

     5.9 Riverbend Marks. Promptly after the Closing, each of the Seller Parties shall (a)
cease using the Riverbend Marks in any manner, directly or indirectly except for such limited uses
as cannot be terminated within a reasonable time period, and to cease such limited usage of the
Riverbend Marks within a reasonable time period after the Closing and in any event within one
hundred-twenty (120) days following the Closing Date and (b) take all necessary actions to change
the corporate name of such Seller Party so that it does not contain the Riverbend Marks or any term
confusingly similar thereto. The Parties agree, because damages would be an inadequate remedy,
that the Buyer shall be entitled to seek specific performance and injunctive relief as remedies for
any breach of this Section 5.9 in addition to other remedies available at law or in equity.
This covenant shall survive indefinitely without limitation as to time.

     5.10 Records. Each of the Parties shall preserve and keep a copy of all records
relating to the Gathering System or the Assets (including the Transferred Records) in its
possession for a period of at least seven (7) years after the Closing Date. After such seven-year
period, before any Party shall dispose of any such records, such Party shall give the other Parties
at least ninety (90) days’ prior notice to such effect, and each of the other Parties shall be
given an opportunity, at its cost and expense, to remove and retain all or any part of such records
as it may select. Each of the Parties shall provide to the other, at no cost or expense to the
other, full access to such records as remain in such Party’s possession and full access to its
properties and employees in connection with matters relating to the Assets on or before the Closing
and any disputes relating to this Agreement.

     5.11 Transferred Permits. Buyer shall use Reasonable Efforts to provide all notices
and otherwise take all actions required to transfer or reissue any Transferred Permits as a result
of or in furtherance of the transactions contemplated by this Agreement and the other Transaction
Documents. Buyer shall reasonably promptly provide Seller with copies of all such filings when
made. Seller shall, and Gasco shall cause Seller to, use Reasonable Efforts to cooperate with
Buyer to provide information necessary to achieve the transfer or reissue of such Transferred
Permits.

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     5.12 Guarantees. Buyer acknowledges the list of Guarantees set forth on Seller
Parties’ Schedule 3.22 and agrees in the case of any such Guarantee that it shall use
Reasonable Efforts to cooperate with the Seller Parties in order to (i) to terminate any such
Guarantee (including offering to substitute a guarantee of Buyer or one of its Affiliates or
Subsidiaries for such Guarantee) and (ii) procure from the existing obligee the release of the
Seller Party that is a party to such Guarantee from any and all Liability from and under such
Guarantee accruing after the Closing Date (if the Salt Water Disposal Assets are transferred at the
Closing) or the date of the Salt Water Disposal Assets Closing (if the Salt Water Disposal Assets
are not transferred at the Closing) (as applicable, the “Target Release Date”), which release shall
be acceptable to the existing obligee and shall take effect at and as of the Target Release Date.
To the extent that the Seller Party is not able to terminate any such Guarantee and obtain any such
release prior to the Target Release Date in accordance with clause (ii) of the preceding sentence,
Buyer agrees that it shall (a) continue to use Reasonable Efforts thereafter to effect such a
termination and release and (b) defend, indemnify and hold harmless the Seller Parties of, from and
against any Damages that such Seller Party may incur or suffer as a result of being required to
perform any obligations under, or against any claim made or threatened to be made in connection
with, any such Guarantees to the extent relating to actions first occurring or conditions first
existing from and after the Target Release Date. This indemnification shall be in addition to the
indemnification provided pursuant to ARTICLE VII and shall not be subject to the
thresholds, Deductible or other limitations on amount set forth therein; provided that in no event
shall Buyer be required to defend, indemnify and hold harmless the Seller Parties for any such
Damages to the extent the Seller Parties are required to indemnify the Buyer Parties for such
Damages pursuant to Section 7.2.

     5.13 Employees. Seller Parties’ Schedule 5.13(a) lists all employees of
Seller Parties that have worked on the operations of the Gathering System as their principal job
duty in the preceding 12 months.

          (b) Only those Employees listed on Seller Parties’ Schedule 3.20(a) are available for
hire by Buyer. Any employment offers to any of the Employees shall be under the terms that Buyer,
in its sole discretion, determines. Nothing herein shall require Buyer to offer employment to any
particular Employee or to offer any specific terms of employment to any Employee.

          (c) No earlier than the Effective Date and no later than five (5) days before the termination
date of the Transition Services Agreement (the “Transition Period”), Buyer shall make an offer of
employment to those Employees that it wishes to hire; provided that, not later than two (2) days
before the termination date of the Transition Services Agreement, Buyer shall inform Seller in
writing of the names of those Employees to whom it has made offers and the terms of such offers. On
the date that Buyer selects for such employee to be hired (the “Start Date”), which date shall not
be earlier than the Closing Date, Gasco shall terminate or cause to be terminated the employment of
each Employee who accepts Buyer’s offer of employment (each, a “Transferred Employee”), such
termination to be effective as of the Start Date. From and after the Effective Date until the
earlier to occur of his or her respective Start Date or the expiration of the Transition Period,
each Transferred Employee shall continue to be an employee
of Seller or its Affiliates and participate in the Employee Benefit Plans. As of the
termination date of the Transition Services Agreement, all Transferred Employees shall be entitled
to

35

 

participate in the benefit plans and arrangements sponsored by Buyer, subject to the terms and
conditions of such benefit plans and arrangements. The Seller Parties shall waive enforcement of
any and all non-compete, confidential information and restrictive covenants or agreements
applicable to each such Transferred Employee, so that any such Transferred Employee will not be in
violation of any such obligations to the Seller Parties when such Transferred Employee is employed
by Buyer or by any Affiliate or Subsidiary of Buyer.

          (d) Prior to the Closing, the Seller Parties shall comply (and shall cause all of their
Affiliates and Subsidiaries to comply) with all applicable Laws in connection with the termination
of employment of any Transferred Employee, and Gasco shall retain all liability relating to the
employment of each Transferred Employee to the extent arising prior to his or her Start Date, it
being understood that Buyer or its Affiliates, as applicable, shall assume all liability relating
to the employment of each Transferred Employee arising on or after their respective Start Dates.

          (e) Gasco or the insurer of the Seller Parties’ welfare plans shall be responsible for all
claims for welfare benefits (“Welfare Benefit Claim”) with respect to all Transferred Employees
(and their covered dependents and beneficiaries) that arose prior to their respective date of
hiring. Any Welfare Benefit Claims incurred by any Transferred Employee on or after the date of
hiring shall be Buyer’s responsibility in accordance with the terms of any applicable welfare
benefit plan maintained by Buyer for the Transferred Employees. A Welfare Benefit Claim shall be
deemed to have arisen when the services relating to the condition that is the subject of the claim
are performed.

          (f) Gasco waives (and shall cause all Affiliates and Subsidiaries of Gasco to waive) any and
all claims against Buyer and the Transferred Employees arising from any Transferred Employee’s
employment by Buyer, to the extent such claims arise under any employment agreement,
confidentiality or non-disclosure agreement or policy, or non-competition agreement between any
such Transferred Employee and Gasco (or any Affiliate or Subsidiary of Gasco).

          (g) As of the termination date of the Transition Services Agreement, to the extent any of the
Available Employees become Transferred Employees, Buyer shall assume liability for the Seller
Parties’ obligations under COBRA, including the obligation, if any, to provide notice and
continuation of coverage to any Transferred Employee who is a covered employee or qualified
beneficiary (as such terms are defined in section 4980(f) of the Code) or has a qualifying event
(as defined in Section 4980(f) of the Code) incident to the transactions contemplated by this
Agreement.

          (h) Buyer will not assume any Employee Benefit Plan or any Liabilities thereunder, and none
shall be considered an acquired “Asset,” an “Assumed Contract,” or an “Assumed Liability” for
purposes of this Agreement.

          (i) FUTA; FICA. Subject to Buyer determining in good faith that it is legally permitted to do
so, Gasco and Buyer shall treat Buyer as a “successor employer” and each Seller
as a “predecessor” within the meaning of Sections 3121(a)(1) and 3306(b)(1) of the Code with
respect to Transferred Employees for purposes of Taxes imposed under the United States Federal

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Unemployment Tax Act (“FUTA”) or the United States Federal Insurance Contributions Act (“FICA”).

     5.14 Insurance. Buyer hereby acknowledges that on and as of the Closing Date, Buyer
shall be responsible for obtaining and maintaining insurance covering the Assets and that, subject
to Section 3.14, on and as of the Closing Date, the Seller Parties shall not be responsible
for the maintenance of any insurance policy relating to the Assets.

     5.15 Liability for Transfer Taxes. Any state or local transfer, sales, use, stamp,
registration or other similar Taxes resulting from or that are imposed as a result of the
transactions contemplated by this Agreement shall be borne equally by Seller and Buyer. Buyer and
Seller Parties, as appropriate, shall file, to the extent required by applicable Laws, all
necessary Tax Returns and other documentation with respect to such Taxes, and, if required by
applicable Laws, Buyer and/or Seller Parties, as appropriate, will join in the execution of any
such Tax Return or other documentation of the other.

     5.16 Cooperation on Tax Matters.

          (a) In connection with the preparation of Tax Returns directly related to the Assets, audit
examinations directly related to the Assets, and any administrative or judicial proceedings
regarding Tax Liabilities that are imposed on the Seller Parties or Buyer and directly relate to
the Assets, Buyer and the Seller Parties shall cooperate fully with each other, including with
respect to the furnishing or making available during normal business hours of records, personnel
(as reasonably required), books of account, powers of attorney or other materials necessary or
helpful for the preparation of such Tax Returns, the conduct of such audit examinations or the
defense of claims by Governmental Authorities as to the imposition of such Taxes.

          (b) For purposes of determining Retained Liabilities and Assumed Liabilities, (i) all ad
valorem taxes, real property taxes, personal property taxes and similar obligations (“Property
Taxes”) attributable to the Assets with respect to a tax period in which the Closing Date occurs
shall be apportioned between the period ending on the Closing Date and the period from and after
the Closing Date by prorating such Property Taxes on a daily basis over the entire tax period, and
(ii) all taxes that are based upon or related to income or receipts attributable to the Assets with
respect to a tax period in which the Closing Date occurs shall be apportioned based on an interim
closing of the books as of the Closing Date with the Seller Parties being allocated the amount that
would be payable if the taxable year of the Seller Parties ended with (and included) the Closing
Date; provided that exemptions, allowance or deduction that are calculated on an annual basis
(including depreciation and amortization deductions) shall be allocated between the period ending
on the Closing Date and the period from and after the Closing Date in proportion to the number of
days in each period.

     5.17 Use of Proceeds. Promptly after the Closing, Gasco shall (x) use $15 million of the
proceeds from the sale of the Assets to repay outstanding Indebtedness for money borrowed
of Gasco and its Subsidiaries and (y) obtain the consent to such payment of those lenders holding a
first lien on the Assets.

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     5.18 Environmental Matters.

          (a) Buyer acknowledges that Gasco and the Gathering System are the subject of the EPA
Enforcement Action brought by the United States Department of Justice (“DOJ”) on behalf of the
United States Environmental Protection Agency (“EPA”) that is more particularly described on
Seller Parties’ Schedule 3.12. Gasco has been negotiating and continues to negotiate a
consent decree to resolve the EPA Enforcement Action (“EPA Consent Decree”), but Gasco believes
that the EPA Consent Decree will not have been finalized or entered before the Closing Date. The
most recent draft of the EPA Consent Decree provided by Seller to Buyer (“EPA Consent Decree
Draft”) is attached hereto as Exhibit G-1. The Parties shall cooperate to attempt to
negotiate with DOJ and EPA a final EPA Consent Decree that (i) does not impose upon Buyer or the
Assets any costs or obligations that are in addition to or more stringent than those included in
the EPA Consent Decree Draft as amended in accordance with Buyer’s comments attached hereto as
Exhibit G-2 (the “Buyer Mark-up of the EPA Consent Decree Draft”); and (ii) is otherwise
satisfactory in form and substance to Buyer.

          (b) Following the date hereof, Buyer and its representatives shall have the right to
participate fully in all discussions and negotiations with the DOJ and EPA with regard to the
resolution of the EPA Enforcement Action, including in connection with the drafting and negotiation
of the EPA Consent Decree. In conjunction therewith, the Seller Parties shall at all times (i)
keep Buyer reasonably informed relating to discussions or negotiations with DOJ and EPA and notify
Buyer of, and give Buyer an opportunity to attend, scheduled voice or in-person conferences with
DOJ, EPA and any other third party (other than consultants or counsel retained by the Seller
Parties) relating to the EPA Enforcement Action or EPA Consent Decree; (ii) provide Buyer with a
reasonable period of time, given the specific circumstances, to permit it to comment on any drafts
of the EPA Consent Decree; and (iii) timely provide copies of any reports, correspondence and other
documentation received from DOJ, EPA or any other third party or consultants retained by the Seller
Parties relating to the EPA Enforcement Action or EPA Consent Decree.

          (c) The Seller Parties will, concurrently with negotiating the EPA Consent Decree, work
diligently and promptly from the date hereof until the Closing Date to complete and pay for all
actions or projects required by the EPA Consent Decree Draft or otherwise necessary to resolve
completely all issues raised by the EPA Enforcement Action other than installation of pneumatic
controls as set forth on Schedule 5.18(c).  The Seller Parties will provide to
Buyer written documentation and other evidence reasonably requested by Buyer as soon as reasonably
practicable, but no later than the Closing Date, demonstrating to the reasonable satisfaction of
Buyer that the actions and projects required by this clause (c) have been completed.

          (d) The Seller Parties will work diligently and promptly to complete and pay for all actions
or projects, including all Remedial Actions, (i) necessary to ensure that (x) Spill Prevention,
Control and Countermeasure Plans (“SPCC Plans”) and Spill Contingency Plans (“Contingency Plans”)
have been prepared for all Assets required to have such SPCC Plans and
Contingency Plans under any Environmental Law and (y) all SPCC Plans and Contingency Plans
maintained or required to be maintained by the Seller Parties in connection with the Assets are
accurate and complete and meet all requirements under Environmental Laws; and (ii) necessary

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to
identify the source, content and scope of the staining and standing fluids at the Questar Tap and
Gate Canyon Compressor Station and to fully address such matters, including undertaking and
completing all Remedial Action to address any affected soil, surface water and groundwater, in each
case to the reasonable satisfaction of Buyer and in compliance with the terms of all Environmental
Laws and the requirements of any Governmental Authorities, and to promptly and properly repair,
upgrade or replace any processes, equipment or facilities at the Questar Tap or Gate Canyon
Compressor Station that are causing or contributing to such staining or standing fluids. The Seller
Parties will provide to Buyer written documentation and other evidence reasonably requested by
Buyer as soon as reasonably practicable and, with respect to clause (i) above, no later than the
Closing Date, demonstrating to the reasonable satisfaction of Buyer that the actions and projects
required by this clause (d) have been completed.

     5.19 Noncompetition. (a) Each of the Seller Parties agrees that until December 31,
2014, neither it nor any of its Affiliates, excluding (i) the executive officers of Gasco and its
subsidiaries that cease to be employed by Gasco or any of its subsidiaries and (ii) the directors
of Gasco, shall:

          (i) engage, either directly or indirectly, as a principal or for its own account or
solely or jointly with others, or as stockholders in any corporation or joint stock
association, in any business that competes with the Gathering System or the Salt Water
Disposal Assets as they exist on the Closing Date within the counties of Carbon, Dagget,
Duchesne, Grand, Summit, Uintah and Wasatch in the State of Utah and the counties of
Garfield, Moffat and Rio Blanco in the State of Colorado; provided that nothing in this
Section 5.19 shall prohibit the directors of Gasco from having beneficial ownership
of the issued and outstanding Marketable Securities of any entity engaged in the energy
industry generally; or

          (ii) solicit the performance of services by, any Transferred Employee;

          (iii) provided however, that for purposes of this Section, production-related
activities carried out by any of the Seller Parties, including drilling and closing wells,
entering and exiting easements and leaseholds, engaging in preliminary field gathering to
enable delivery of gas to the Gathering System pursuant to the terms of the Gathering
Agreement, and otherwise engaging in the actions and responsibilities authorized or required
pursuant to the Gathering Agreement, the Salt Water Disposal Services Agreement or any of
the Seller Parties’ joint operating agreements, Unit Operating Agreements and Gas Balancing
Agreements (solely to the extent that such actions and responsibilities pursuant to Seller
Parties’ joint operating agreements, Unit Operating Agreements and Gas Balancing Agreements
do not involve natural gas gathering or processing or the collection, disposal or recycling
of salt water) are deemed by the Parties to be business that does not compete with the
Gathering System.

          (b) If any provision contained in this Section shall for any reason be held invalid, illegal
or unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provisions of this Section, but this Section shall be construed as
if such invalid, illegal or unenforceable provision had never been contained herein. It is the
intention of the Parties that if any of the restrictions or covenants contained herein is held to
cover a

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geographic area or to be for a length of time which is not permitted by applicable Law, or
in any way construed to be too broad or to any extent invalid, such provision shall not be
construed to be null, void and of no effect, but to the extent such provision would be valid or
enforceable under applicable Law, a court of competent jurisdiction shall construe and interpret or
reform this Section to provide for a covenant having the maximum enforceable geographic area, time
period and other provisions (not greater than those contained herein) as shall be valid and
enforceable under such applicable Law. Each of the Seller Parties acknowledges that Buyer would be
irreparably harmed by any breach of this Section and that there would be no adequate remedy at law
or in damages to compensate Buyer for any such breach. Each of the Seller Parties agrees that
Buyer shall be entitled to injunctive relief requiring specific performance by each of the Seller
Parties of this Section, and each of the Seller Parties consents to the entry thereof.

     5.20 Further Assurances. Each Party hereto will, notwithstanding the existence of a
Title Defect Notice or Notice of Disagreement, make Reasonable Efforts as are necessary or
desirable and execute any additional documents, instruments or conveyances of any kind which may
be reasonably necessary to further effect the transactions contemplated by this Agreement and the
other Transaction Documents; provided, however, that no such action, document, instrument or
conveyance shall increase a Party’s liability beyond that contemplated by this Agreement.

ARTICLE VI

CLOSING, CLOSING DELIVERIES, CONDITIONS TO CLOSING

     6.1 The Closing. Subject to the terms and conditions of this Agreement, the closing
of the transactions contemplated by this Agreement (the “Closing”) shall take place at the offices
of Vinson & Elkins L.L.P., 1001 Fannin St, Suite 2500, Houston, Texas 77002 or at such other place
as the Parties may designate, commencing at 9:00 a.m. local time on the third Business Day
following the satisfaction or waiver of all conditions to the obligations of the Parties set forth
in ARTICLE VI herein, or such other date as Buyer and Seller may mutually determine. The
date on which the Closing occurs is referred to herein as the “Closing Date.”

     6.2 Conditions to Obligations of Buyer. The obligation of Buyer to consummate the
transactions contemplated by this Agreement is subject to the satisfaction of the following
conditions, any one or more of which may be waived in writing by Buyer:

          (a) Representations, Warranties and Covenants of Seller. (i) Each of the
representations and warranties of Seller Parties made in this Agreement will be true and correct in
all respects (provided, however, that for purposes of determining whether such representations and
warranties are true and correct, all qualifications in such representations and warranties as to
materiality, in all material respects and similar materiality qualifications contained in such
representations and warranties shall be disregarded, except with respect to any contained in
Section 3.4) as of the Effective Date and as of the Closing (as if made anew at and as of
the Closing), except (x) where the breach of a representation or warranty (individually or when
aggregated with any other breaches of representations and warranties) would not reasonably be
expected to have a Material Adverse Effect on the Assets or on the Seller Parties and (y) any
representation or warranty made as of a specified date, shall be required to be so true and correct

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only on and as of such specified date; (ii) each of the Seller Parties shall have performed or
complied in all material respects with all of the covenants and agreements required by this
Agreement to be performed or complied with by the Seller Parties on or before the Closing; and
(iii) each of the Seller Parties shall have delivered to Buyer a certificate executed by two of
their respective officers, dated the Closing Date, representing that the conditions specified in
this Section 6.2(a) have been fulfilled.

          (b) No Injunction, Etc. No Order or provision of any applicable Law will be in effect
that prohibits or restricts the consummation of the Closing.

          (c) Gas Gathering Agreement. The Parties will execute the Gathering Agreement.

          (d) Gas Purchase and Sale Agreement. Gasco and Buyer will enter into a gas purchase
and sale agreement (the “Gas Purchase and Sale Agreement”) whereby Buyer will agree to sell and
deliver and Gasco will agree to purchase and receive, Buyer’s gas produced from certain wells,
according to the terms of such Gas Purchase and Sale Agreement.

          (e) Assignment of Agreements. Seller will assign its rights and obligations in, to
and under the agreements listed on Buyer’s Schedule 6.2(e) to Gasco Production Company, a
Delaware corporation (“Gasco Production”).

          (f) Termination of Gas Purchase Agreement. The Seller Parties will terminate or cause
to be terminated (i) that certain gas purchase agreement, dated January 1, 2006, by and between
Riverbend Gas Gathering Company, LLC and Gasco Production and (ii) that certain letter of intent,
dated July 23, 2007, by and between Westport Field Services, LLC, a subsidiary of Anadarko
Petroleum Corporation, and Gasco Energy Inc. for gathering and processing services from Westport
Field Services, LLC.

          (g) Salt Water Disposal Services Agreements. The Parties will execute the Salt Water
Disposal Services Agreements.

          (h) Easement and Right-of-Way Agreements. Buyer shall have received all easements and
right-of-way agreements (which will include the right to transport third party gas and natural gas
liquids) reasonably necessary for the operation, maintenance, repair and replacement of the Assets,
in each case in form and substance reasonably satisfactory to Buyer.

          (i) Consents. Seller shall have obtained all approvals, consents and releases listed
on Buyer’s Schedule 6.2(i), in each case in form and substance reasonably satisfactory to
Buyer, and no such approval, consent or release shall have been revoked;

          (j) EPA and DOJ Discussions. Buyer shall have participated in a discussion with the
appropriate representatives of the EPA and DOJ regarding the EPA Enforcement Action and EPA Consent
Decree, which shall have been arranged by the Seller Parties at a time and
under conditions reasonably satisfactory to Buyer, and the content of such discussion shall
have been reasonably satisfactory to Buyer.

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          (k) The Seller Parties Deliveries. At the Closing, the Seller Parties shall deliver
or cause to be delivered to Buyer each of the following documents, as applicable:

          (i) copies of certificates of existence and good standing for each of the Seller
Parties issued by the appropriate public officials of the State of Nevada, each dated as of
a recent date;

          (ii) a certificate, dated the Closing Date, of an officer of Seller (i) attaching
certified copies of Seller’s Organizational Documents, (ii) certifying on behalf of Seller
that all actions required to authorize and approve the execution and delivery of this
Agreement and the other Transaction Documents to which Seller is a party and the
transactions contemplated hereby and thereby, have been taken by Seller and setting forth
copies of such actions and (iii) certifying the accuracy of the specimen signature of the
officers or such authorized representatives of Seller executing this Agreement, the other
Transaction Documents to which Seller is a party and such other documents and agreements on
behalf of Seller;

          (iii) a certificate, dated the Closing Date, of an officer of Gasco (i) attaching
certified copies of Gasco’s Organizational Documents, (ii) certifying on behalf of Gasco
that all actions by Gasco required to authorize and approve the execution and delivery of
this Agreement and the other Transaction Documents to which Gasco is a party and the
transactions contemplated hereby and thereby, have been taken by Gasco and setting forth
copies of such actions and (iii) certifying the accuracy of the specimen signature of the
officers or such other authorized representatives of Gasco executing this Agreement, the
other Transaction Documents to which Gasco is a party and such other documents and
agreements on behalf of Gasco;

          (iv) an executed counterpart of the Gathering Agreement;

          (v) an executed counterpart of the Gas Purchase and Sale Agreement;

          (vi) an executed counterpart of the Transition Services Agreement;

          (vii) an executed counterpart of the Salt Water Disposal Services Agreement;

          (viii) an executed counterpart of Assignment and Assumption Agreement;

          (ix) one or more originals (as necessary) of an executed and recordable Assignment of
Real Property Interests;

          (x) releases of all Liens against the Assets created under or pursuant to any
Indebtedness of Gasco or any of its Subsidiaries.

          (xi) releases of those Liens set forth on Buyer’s Schedule 6.2(k)(xi).

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          (xii) (A) a statement, reasonably satisfactory to Buyer, issued by Gasco and signed by
an officer of Gasco under penalties of perjury, certifying (i) that Seller is a disregarded
entity as defined in Treas. Reg. Sec. 1.1445-2(b)(2)(iii), (ii) that Gasco is not a foreign
corporation, foreign partnership, foreign trust or foreign estate (as those terms are
defined in the Code and regulations thereunder), (iii) that Gasco is not a disregarded
entity as defined in Treas. Reg. Sec. 1.1445-2(b)(2)(iii) and (iv) Gasco’s U.S. employer
identification number and office address and (B) a statement, reasonably satisfactory to
Buyer, issued by Gasco Production Company and signed by an officer of Gasco Production
Company under penalties of perjury, certifying (i) that Gasco Production Company is not a
foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms
are defined in the Code and regulations thereunder), (ii) that Gasco Production Company is
not a disregarded entity as defined in Treas. Reg. Sec. 1.1445-2(b)(2)(iii) and (iii) Gasco
Production Company’s U.S. employer identification number and office address (each, a “FIRPTA
Certificate”).

          (xiii) all Permits and any other authorizations, consents, approvals and waivers of any
third party or Governmental Authority, the granting of which are necessary for the
consummation of the transactions contemplated herein, including for effecting the transfer
of any Assumed Contract, Guarantee and Transferred Permit and preventing the termination of
any Assumed Contract upon the consummation of the transactions contemplated herein, as set
forth on Seller Parties’ Schedule 3.3(b) and Seller Parties’ Schedule
3.3(e).

          (xiv) a letter from each of the Seller Parties waiving enforcement of any and all
non-compete and restrictive covenants or agreements applicable to each Transferred Employee,
if any, as contemplated by Section 5.13(c).

          (xv) copies or originals, of all documents relating to the Real Property Interests,
Assumed Contracts and Transferred Records; and

          (xvi) such other documents, deeds, certificates, instruments or agreements contemplated
hereby or as may be necessary or appropriate to consummate the transactions contemplated
hereby, or as may be reasonably requested by Buyer and agreed to by the Seller Parties prior
to the Closing Date to carry out the intent and purposes of this Agreement.

     6.3 Conditions to the Obligations of Seller Parties. The obligation of Seller Parties
to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the
following conditions, any one or more of which may be waived in writing by either Seller Party:

          (a) Representations, Warranties and Covenants of Buyer. (i) Each of the
representations and warranties of Buyer made in this Agreement will be true and correct in all
respects (provided, however, that for purposes of determining whether such representations and
warranties are true and correct, all qualifications in such representations and warranties as to
materiality, Material Adverse Effect, in all material respects and similar materiality
qualifications contained in such representations and warranties shall be disregarded) as of
the Effective Date and as of the Closing (as if made anew at and as of the Closing), except (x)
where

43

 

the breach of a representation or warranty (individually or when aggregated with other
breaches of representations or warranties) would not reasonably be expected to have a Material
Adverse Effect on Buyer and (y) any representation or warranty made as of a specified date, shall
be required to be so true and correct only on and as of such specified date; (ii) Buyer shall have
performed or complied in all material respects with all of the covenants and agreements required by
this Agreement to be performed or complied with by Buyer on or before the Closing; and (iii) Buyer
shall have delivered to Seller a certificate executed by two of its officers, dated the Closing
Date, representing that the conditions specified in this Section 6.3(a) have been
fulfilled.

          (b) No Injunction, Etc. No Order or provision of any applicable Law will be in effect
that prohibits or restricts the consummation of the Closing.

          (c) Buyer Deliveries. At the Closing, Buyer shall deliver or cause to be delivered to
Seller:

          (i) the Net Purchased Assets Sale Price;

          (ii) the Salt Water Disposal Assets Sale Price, but only if the Salt Water Disposal
Assets are transferred at the Closing.

          (iii) copies of a certificate of existence and good standing for Buyer issued by the
appropriate public officials of the State of Delaware, and dated as of a recent date;

          (iv) a certificate, dated the Closing Date, of an officer of Buyer (i) attaching
certified copies of Buyer’s Organizational Documents, (ii) certifying on behalf of Buyer
that all actions required to authorize and approve the execution and delivery of this
Agreement and the other Transaction Documents and the transactions contemplated hereby and
thereby, have been taken by Buyer and setting forth copies of such actions and (iii)
certifying the accuracy of the specimen signatures of the officer or other authorized
representatives of Buyer executing this Agreement, the other Transaction Documents and such
other documents and agreements on behalf of Buyer;

          (v) an executed counterpart of the Gathering Agreement;

          (vi) an executed counterpart of the Gas Purchase and Sale Agreement;

          (vii) an executed counterpart of the Transition Services Agreement;

          (viii) an executed counterpart of the Assignment and Assumption Agreement;

          (ix) one or more originals (as necessary) of an executed and recordable Assignment of
Real Property Interests;

          (x) copies of all Permits and any other authorizations, consents, approvals and waivers
of any third party or Governmental Authority, the granting of which are necessary for the
consummation of the transactions contemplated herein,

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including for the assumption of any
Assumed Contract, Transferred Permit and, if the Salt Water Disposal Assets are transferred
at the Closing, Guarantee upon the consummation of the transactions contemplated herein as
set forth on Buyer’s Schedule 4.3(b) and Buyer’s Schedule 4.3(d); and

          (xi) such other documents, deeds, certificates, instruments or agreements contemplated
hereby or as may be necessary to consummate the transactions contemplated hereby, or as may
be reasonably requested by the Seller Parties and agreed to by Buyer prior to the Closing
Date to carry out the intent and purposes of this Agreement.

ARTICLE VII

INDEMNIFICATION

          7.1 Survival. The representations and warranties contained in this Agreement and any
certificate delivered pursuant to Section 6.2(a) and Section 6.3(a) shall survive
the Closing and shall continue in force and effect until twelve (12) months after the Closing Date,
except that (a) the representations and warranties in Section 3.1 (Organization of Seller),
Section 3.2 (Authorization; Enforceability), Section 3.10 (Brokers’ Fees),
Section 4.1 (Organization of Buyer), Section 4.2 (Authorization; Enforceability)
and Section 4.5 (Brokers’ Fees) shall survive the Closing indefinitely; (b) the
representations and warranties in Section 3.12 (Environmental Matters) shall survive until
the second anniversary of the Closing; and (c) the representations and warranties in
Section 3.11 (Taxes) shall survive until sixty (60) days following the expiration of the
applicable statute of limitations. The covenants and agreements of the Parties contained in this
Agreement or in any certificate or other writing delivered pursuant hereto or in connection
herewith shall survive the Closing indefinitely or for the shorter period explicitly specified
therein, except that for such covenants and agreements that survive for such shorter period,
breaches thereof shall survive indefinitely or until the latest date permitted by law.
Notwithstanding the preceding sentence, any covenant, representation or warranty in respect of
which indemnity may be sought under this Agreement will survive the time at which it would
otherwise terminate pursuant to the preceding sentence if written notice of the inaccuracy or
breach thereof giving rise to such right of indemnity has been given to the Party against whom such
indemnification may be sought prior to such time; provided that such right of indemnity shall
continue to survive and shall remain a basis for indemnification hereunder only until the related
claim for indemnification is resolved or disposed of in accordance with the terms of this
ARTICLE VII, provided that such Party is pursuing such claim in good faith.

     7.2 Indemnification Provisions for Benefit of Buyer. From and after the Closing and
subject to the terms and conditions hereof, the Seller Parties, jointly and severally, will
indemnify, defend and hold harmless Buyer and its Affiliates and each of their respective officers,
members, directors, managers, partners, shareholders and employees (the “Buyer Indemnified
Parties”) for and against:

     (a) any and all Damages incurred or suffered as a result of, relating to or arising out
of:

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          (i) any failure of any representation or warranty made by the Seller Parties in
ARTICLE III of this Agreement or in any certificate delivered pursuant to
Section 6.2(a), to be true and correct as of the Effective Date or as of the
Closing, except to the extent any such representation or warranty speaks to an earlier date,
in which case, to be true and correct as of that earlier date;

          (ii) the breach or non-performance by the Seller Parties of any covenant or agreement
made or to be performed by the Seller Parties pursuant to this Agreement; and

     (b) Retained Liabilities;

     (c) all Damages and the costs of all actions and projects, including all Remedial
Actions and the payment of any fines or penalties, relating to (i) the existence of staining
and standing fluids at the Questar Tap and Gate Canyon Compressor Station and (ii) a failure
of any Assets to have, at any time prior to the Closing Date, final, accurate and complete
SPCC Plans and Contingency Plans that meet all requirements of Environmental Laws; and

     (d) all court costs and attorneys’, consultants’, engineers’ and other experts’ fees
and expenses incurred after the Closing Date that relate to negotiating, drafting, reviewing
and executing the EPA Consent Decree and all actions related thereto, including without
limitation the costs, fees, and expenses to prepare, review and submit an amendment to the
Title V permit application for the Riverbend Compressor Station as required by the terms of
the EPA Consent Decree and to take any other actions required in connection with obtaining
such amendment to the Title V permit application;

in the case of each of clause (a), (b), (c) and (d) above, regardless of whether the foregoing
arise as a result of the negligence, strict liability or any other liability under any theory of
law or equity of Buyer, or any of its Affiliates or any of their respective successors or
assignees.

Notwithstanding anything herein to the contrary, (x) the Seller Parties will not be liable under
Section 7.2(a)(i) until Buyer Indemnified Parties have suffered aggregate Damages under
Section 7.2(a)(i) in excess of $250,000.00 (the “Deductible”), in which case only Damages
under Section 7.2(a)(i) in excess of the Deductible are recoverable, (y) the Seller
Parties will not be liable under Section 7.2(a)(i) for Damages in excess of $5,750,000,
provided however, that the limitations in clauses (x) and (y) shall not apply to any breach of
representation or warranty set forth in Section 3.1 (Organization of the Seller Parties),
Section 3.2 (Authorization, Enforceability), Section 3.10 (Brokers’ Fees) or
Section 3.18 (Natural Gas and Natural Gas Liquids Imbalances), and (z) the Seller Parties
shall not be liable under Section 7.2(d) (A) until Buyer Indemnified Parties have incurred
aggregate costs, fees and expenses in excess of $25,000.00 after the Closing Date, in which case
only costs, fees and expenses in excess of $25,000.00 are recoverable and (B) the Seller Parties
shall not be liable under Section 7.2(d) for Damages in excess of $75,000.00.

     7.3 Indemnification Provisions for Benefit of the Seller Parties. From and after the
Closing, Buyer will indemnify, defend and hold harmless the Seller Parties and their respective

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Affiliates and each of their officers, members, directors, managers, partners, shareholders and
employees (the “Seller Indemnified Parties”) for and against:

          (a) any and all Damages incurred or suffered as a result of, relating to or arising out of:

          (i) any failure of any representation or warranty made by Buyer in ARTICLE IV
of this Agreement or in any certificate delivered pursuant to Section 6.3(a) to be
true and correct as of the Effective Date or as of the Closing, except to the extent any
such representation or warranty speaks to an earlier date, in which case, to be true and
correct as of that earlier date; and

          (ii) the breach or non-performance by Buyer of any covenant or agreement made or to be
performed by Buyer pursuant to this Agreement;

          (b) any Assumed Liabilities or Assumed Contracts; and

          (c) any and all Damages incurred or suffered as a result of the ownership, operation, repair,
replacement or maintenance of the Assets, in each case solely to the extent resulting from actions
first occurring or conditions first existing after the Closing, and excluding (i) the Retained
Liabilities and (ii) any Damages arising out of a breach by any Seller Party of any representations
or warranties of such Seller Party in ARTICLE III or any covenant of such Seller Party in
this Agreement for which a Claim Notice has been timely delivered.

in the case of each of clause (a), (b), or (c), regardless of whether such Damages arise as a
result of the negligence, strict liability or any other liability under any theory of law or equity
of the Seller Parties, or any of their Affiliates or any of their respective successors or
assignees.

Notwithstanding anything herein to the contrary, Buyer will not be liable under this
Section 7.3 for the Retained Liabilities.

Notwithstanding anything herein to the contrary, (x) the Buyer will not be liable under
Section 7.3(a)(i) until Seller Indemnified Parties have suffered aggregate Damages under
Section 7.3(a)(i) in excess the Deductible, in which case only Damages under
Section 7.3(a)(i) in excess of the Deductible are recoverable, and (y) the Buyer will not
be liable under Section 7.3(a)(i) for Damages in excess of $5,750,000, provided however,
that the limitation in clause (x) and (y) shall not apply to any breach of representation or
warranty set forth in Section 4.1 (Organization of the Seller Parties), Section 4.2
(Authorization, Enforceability) or Section 4.5 (Brokers Fees).

     7.4 Procedures. Claims for indemnification under this Agreement shall be asserted and
resolved as follows:

          (a) If any Person entitled to seek indemnification under Section 7.2 and
Section 7.3 (an “Indemnified Party”) receives notice of the assertion or commencement of
any claim asserted against an Indemnified Party by a third party (“Third Party Claim”) in respect
of any matter that is subject to indemnification under Section 7.2 or Section 7.3
the Indemnified Party shall promptly (i) notify the party against whom indemnification is sought
(the

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“Indemnifying Party”) of the Third Party Claim and (ii) transmit to the Indemnifying Party a
written notice (“Claim Notice”) describing in reasonable detail the nature of the Third Party
Claim, a copy of all papers served with respect to such claim (if any), the Indemnified Party’s
good faith estimate of the amount of Damages attributable to the Third Party Claim and the basis of
the Indemnified Party’s request for indemnification under this Agreement. Failure to timely provide
such Claim Notice shall not affect the right of the Indemnified Party’s indemnification hereunder,
except to the extent the Indemnifying Party is materially prejudiced by such failure.

          (b) The Indemnifying Party shall have the right to defend the Indemnified Party against such
Third Party Claim. If the Indemnifying Party notifies the Indemnified Party that the Indemnifying
Party elects to assume the defense of the Third Party Claim, then the Indemnifying Party shall have
the right to defend such Third Party Claim with counsel selected by the Indemnifying Party (who
shall be reasonably satisfactory to the Indemnified Party), by all appropriate proceedings, to a
final conclusion or settlement at the discretion of the Indemnifying Party in accordance with this
Section 7.4(b). The Indemnifying Party shall have full control of such defense and
proceedings, including any compromise or settlement thereof; provided that the Indemnifying Party
shall not enter into any settlement agreement without the written consent of the Indemnified Party
(which consent shall not be unreasonably withheld, conditioned or delayed); provided further, that
such consent shall not be required if (i) the settlement agreement contains a complete and
unconditional general release by the third party asserting the claim to all Indemnified Parties
affected by the claim and (ii) the settlement agreement contemplates only the payment of monetary
damages by the Indemnifying Party or its Affiliates. Subject to the foregoing, if requested by the
Indemnifying Party, the Indemnified Party agrees, at the sole cost and expense of the Indemnifying
Party, to use Reasonable Efforts to cooperate with the Indemnifying Party and its counsel in
contesting any Third Party Claim which the Indemnifying Party elects to contest, including the
making of any related counterclaim against the Person asserting the Third Party Claim or any cross
complaint against any Person. The Indemnified Party may participate in, but not control, any
defense or settlement of any Third Party Claim controlled by the Indemnifying Party pursuant to
this Section 7.4(b), and the Indemnified Party shall bear its own costs and expenses with
respect to such participation.

          (c) If the Indemnifying Party does not notify the Indemnified Party that the Indemnifying
Party elects to defend the Indemnified Party pursuant to Section 7.4(b), then the
Indemnified Party shall have the right to defend, and be reimbursed for its reasonable cost and
expense (but only if the Indemnified Party is actually entitled to indemnification hereunder) in
regard to the Third Party Claim with counsel selected by the Indemnified Party (who shall be
reasonably satisfactory to the Indemnifying Party), by all appropriate proceedings, which
proceedings shall be prosecuted diligently by the Indemnified Party. In such circumstances, the
Indemnified Party shall defend any such Third Party Claim in good faith and have full control of
such defense and proceedings; provided, however, that the Indemnified Party may not enter into any
compromise or settlement of such Third Party Claim if indemnification is to be sought hereunder,
without the Indemnifying Party’s consent (which consent shall not be unreasonably withheld,
conditioned or delayed). If requested by the Indemnified Party, the Indemnifying Party agrees, at
the sole cost and expense of the Indemnifying Party, to use Reasonable Efforts to cooperate with
the Indemnified Party and its counsel in contesting any Third Party Claim which
the Indemnified Party elects to contest, including the making of any related counterclaim
against the Person asserting the Third Party Claim or any cross complaint against any Person. The

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Indemnifying Party may participate in, but not control, any defense or settlement controlled by the
Indemnified Party pursuant to this Section 7.4(c), and the Indemnifying Party shall bear
its own costs and expenses with respect to such participation.

          (d) Any claim by an Indemnified Party on account of Damages that does not result from a Third
Party Claim (a “Direct Claim”) must be asserted by giving the Indemnifying Party reasonably prompt
written notice thereof, but in any event not later than forty-five (45) days after an officer of
the Indemnified Party becomes aware of such Direct Claim. Such notice by the Indemnified Party
shall describe the Direct Claim in reasonable detail, include copies of all available material
written evidence thereof and indicate the estimated amount, if reasonably practicable, of Damages
that have been or may be sustained by the Indemnified Party. The Indemnifying Party will have a
period of twenty (20) Business Days within which to respond in writing to such Direct Claim. If
the Indemnifying Party does not so respond within such twenty (20) Business Day period, the
Indemnifying Party will be deemed to have rejected such claim, in which event the Indemnified Party
will be free to pursue such remedies as may be available to the Indemnified Party on the terms and
subject to the provisions of this Agreement.

          (e) Any indemnification payment made pursuant to this Agreement shall be net of (i) any
insurance proceeds actually realized by and paid to the Indemnified Party in respect of such claim
and (ii) any indemnification or reimbursement payments actually received or recovered, if
recoverable, by the Indemnified Party from third parties with respect to such Damages. The amount
of any Damages shall take into account any net Tax benefits attributable to the circumstance or
event giving rise to such Damages and any Tax costs attributable to the receipt of indemnity
payments hereunder. The Indemnified Party shall use Reasonable Efforts to collect any amounts to
which they may be entitled under insurance policies or from third parties (pursuant to
indemnification arrangements or otherwise) with respect to such Damages.

          (f) Except with respect to the EPA Enforcement Action, no Indemnified Party shall be entitled
to bring a claim for indemnification for any breach or inaccuracy of any representation, warranty
or covenant if such Indemnified Party had Knowledge of such breach or inaccuracy as of the
Effective Date or if the facts or circumstances underlying such breach or inaccuracy are disclosed
in the Disclosure Schedules.

          (g) Any Indemnified Party that becomes aware of Damages for which it seeks indemnification
under this ARTICLE VII shall be required to use Reasonable Efforts to mitigate the Damages,
including taking any actions reasonably requested by, and at the expense of, the Indemnifying
Party, and the Indemnified Party shall not have any right to indemnification for any Damages to the
extent that it is attributable to any Indemnified Party’s failure to use Reasonable Efforts to
mitigate. The Indemnified Party shall not have any right to indemnification under this ARTICLE
VII with respect to Damages to the extent that the Damages were materially and directly
exacerbated by any action taken by any Indemnified Party for the first time on or after the
Closing.

     7.5 Exclusive Remedy and Release. The Parties hereby acknowledge and agree that,
other than with respect to (i) Title Defects, the sole and exclusive remedy for which is set forth
in Section 2.7 hereof, and (ii) claims for actual fraud (as distinguished from
constructive fraud) by the other Party or Parties, the indemnification provisions and remedies set
forth in this ARTICLE

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VII shall, from and after the Closing, constitute the sole and
exclusive remedies of the Parties with respect to this Agreement and the transactions contemplated
hereby and the Parties acknowledge and agree that the remedies available in this ARTICLE VII supersede any other remedies available at law or in equity.

ARTICLE VIII

TERMINATION

     8.1 Termination. At any time prior to the Closing, this Agreement may be terminated
and the transactions contemplated hereby abandoned:

          (a) by the mutual consent of Buyer and Seller as evidenced in a writing signed by each of
Buyer and the Seller Parties;

          (b) by Buyer, if there has been a material breach of any representation, warranty or covenant
of the Seller Parties contained in this Agreement that has prevented the satisfaction of any
condition to the obligations of Buyer at the Closing and, if such breach is of a character that it
is capable of being cured, such breach has not been cured by the Seller Parties within thirty (30)
days after written notice thereof from Buyer;

          (c) by Seller, if there has been a material breach of any representation, warranty or covenant
of Buyer contained in this Agreement that has prevented the satisfaction of any condition to the
obligations of the Seller Parties at the Closing and, if such breach is of a character that it is
capable of being cured, such breach has not been cured by Buyer within thirty (30) days after
written notice thereof from Seller;

          (d) by either Buyer or Seller if any Governmental Authority having competent jurisdiction has
issued a final, non-appealable Order (other than a temporary restraining order) or taken any other
action permanently restraining, enjoining or otherwise prohibiting the transactions contemplated by
this Agreement; or

          (e) by either Buyer or Seller if the Closing shall not have been consummated on or before
March 1, 2010; provided that the right to terminate this Agreement under this
Section 8.1(e) shall not be available to a Party if its willful act or willful failure to
act or whose Affiliate’s willful act or willful failure to act has been the principal cause of or
resulted in the failure of the Closing to occur on or before such date.

     8.2 Effect of Termination. If this Agreement is terminated under Section 8.1,
all further obligations of the Parties under this Agreement will terminate without further
liability or obligation of any Party to the other Parties hereunder; provided, however, that no
Party will be released from liability for any willful and intentional breach of this Agreement.
Nothing in this Section 8.2 will relieve any Party to this Agreement of liability for
breach of this Agreement occurring prior to any termination, or for breach of any provision of this
Agreement that specifically survives termination hereunder. The provisions of ARTICLE IX shall
survive any termination hereof pursuant to Section 8.1. The Confidentiality Agreement
shall not be affected by a termination of this Agreement.

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ARTICLE IX

MISCELLANEOUS

     9.1 Notices. All notices and other communications between the Parties shall be in
writing and shall be deemed to have been duly given when (i) delivered in person, (ii) five days
after posting in the United States mail having been sent registered or certified mail return
receipt requested or (iii) delivered by telecopy and promptly confirmed by delivery in person or
post as aforesaid in each case, with postage prepaid, addressed as follows:

If to Buyer, to:

Monarch Investments Holdings, LLC

5445 DTC Parkway, Suite P-4

Greenwood Village, Colorado 80111

Telephone No.: 303-486-6904

Facsimile No.: 303-486-6994

Attention: Keith R. Finger

With a copy to:

Metalmark Capital Holdings LLC

1177 Avenue of the Americas, 40th Floor

New York, NY 10036

Telephone No.: (212) 823-1948

Facsimile No.: (212) 823-1949

Attention: Gregory D. Myers

With a second copy to:

Davis Polk & Wardwell LLP

450 Lexington Avenue

New York, NY 10017

Telephone No.: (212) 450-4350

Facsimile No.: (212) 701-5350

Attention: John A. Bick

If to a Seller Party, to:

Gasco Energy, Inc.

8 Inverness Drive East, Suite 100

Englewood, Colorado 80112

Telephone No.: (303) 483-0044

Facsimile No.: (303) 483-0011

Attn: King Grant

With a copy to:

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Vinson & Elkins L.L.P.

666 Fifth Avenue, 26th Floor

New York, New York 10103-0040

Telephone No.: (212) 237-0000

Facsimile No.: (212) 237-0100

Attn: Caroline Blitzer

or to such other address or addresses as the Parties may from time to time designate in writing.

     9.2 Succession and Assignment. This Agreement shall be binding upon and inure to the
benefit of the Parties named herein and their respective successors and permitted assigns. No
Party may assign this Agreement or any rights, interest, obligations or other parts hereof without
the prior written consent of the other Parties, which consent and approval may be denied in such
other Party’s sole discretion.

     9.3 Rights of Third Parties. Nothing expressed or implied in this Agreement is
intended or shall be construed to confer upon or give any Person, other than the Parties and their
respective successors and permitted assigns, any right or remedies under or by reason of this
Agreement.

     9.4 Expenses. Except as otherwise expressly provided herein, each Party shall bear
its own costs expenses incurred in connection with this Agreement and the transactions contemplated
hereby whether or not such transactions shall be consummated, including all fees of its legal
counsel, financial advisers and accountants.

     9.5 Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Any facsimile copies hereof or signature hereon shall, for all purposes, be deemed
originals.

     9.6 Entire Agreement. This Agreement (together with the Exhibits and Disclosure
Schedules to this Agreement) and the documents referred to in this Agreement, including the other
Transaction Documents and other certificates, documents and instruments to be executed and
delivered pursuant hereto, constitute the entire agreement among the Parties and supersede any
other agreements or representations, whether written or oral, that may have been made or entered
into by or among any of the Parties or any of their respective Affiliates relating in any way to
the transactions contemplated hereby or the subject matter of this Agreement.

     9.7 Disclosure Schedules. No reference to or disclosure of any item or other matter
on the Disclosure Schedules shall be construed as an admission or indication that such item or
other matter is material or that such item or other matter is required to be referred to or
disclosed on the Disclosure Schedules. No disclosure on the Disclosure Schedules relating to any
possible breach or violation of any agreement or Law shall be construed as an admission or
indication that any such breach or violation exists or has actually occurred. The inclusion of any
information on the Disclosure Schedules shall not be deemed to be an admission or acknowledgment by
the Seller Parties, in and of itself, that such information is material to or outside the ordinary
course of the business of the Seller Parties or required to be disclosed on the Disclosure
Schedules.

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Each disclosure on the Disclosure Schedules shall be deemed to qualify all representations and
warranties of the Seller Parties notwithstanding the lack of a specific cross-reference if the
relevance of that disclosure as an exception to (or a disclosure for purposes of) such
representations and warranties would be reasonably apparent to a reasonable person who has read
that reference and such representations and warranties, without any independent knowledge on the
part of the reader regarding the matter(s) so disclosed.

     9.8 Waiver of Other Representations and Warranties. EXCEPT FOR THE REPRESENTATIONS
AND WARRANTIES CONTAINED IN ARTICLE III OF THIS AGREEMENT (AS MODIFIED BY THE DISCLOSURE
SCHEDULES HERETO), NEITHER OF THE SELLER PARTIES NOR ANY OTHER PERSON MAKES ANY OTHER
REPRESENTATION OR WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, AT LAW OR IN EQUITY, WITH RESPECT TO
SELLER PARTIES, THEIR RESPECTIVE AFFILIATES OR SUBSIDIARIES, THE ASSETS, THE ASSUMED LIABILITIES OR
THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AND THE SELLER PARTIES HEREBY EXPRESSLY DISCLAIM
ANY OTHER REPRESENTATIONS OR WARRANTIES, WHETHER MADE BY SELLER PARTIES, ANY OF THEIR RESPECTIVE
AFFILIATES OR SUBSIDIARIES, OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, MANAGERS, MEMBERS,
SHAREHOLDERS, EMPLOYEES, AGENTS OR REPRESENTATIVES. EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES
CONTAINED IN ARTICLE III HEREOF (AS MODIFIED BY THE DISCLOSURE SCHEDULES HERETO), THE
SELLER PARTIES (I) EXPRESSLY DISCLAIM AND NEGATE ANY REPRESENTATION OR WARRANTY, EXPRESSED OR
IMPLIED, AT COMMON LAW, BY STATUTE, OR OTHERWISE, RELATING TO THE CONDITION OF THE ASSETS
(INCLUDING ANY IMPLIED OR EXPRESSED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR
PURPOSE, OR OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS) AND THE SELLER PARTIES’ INTEREST IN
THE ASSETS ARE BEING TRANSFERRED THROUGH THE SALE TO BUYER “AS IS, WHERE IS , WITH ALL FAULTS,”;
PROVIDED THAT THE PARTIES AGREE THAT THE FOREGOING SHALL NOT LIMIT BUYER’S RIGHT TO INDEMNIFICATION
FOR RETAINED LIABILITIES PURSUANT TO SECTION 7.2(b) AND (II) HEREBY DISCLAIM ALL LIABILITY
AND RESPONSIBILITY FOR ANY REPRESENTATION, WARRANTY, PROJECTION, FORECAST, STATEMENT, OR
INFORMATION MADE, COMMUNICATED, OR FURNISHED (ORALLY OR IN WRITING) TO BUYER OR ITS AFFILIATES OR
REPRESENTATIVES (INCLUDING ANY OPINION, INFORMATION, PROJECTION, OR ADVICE THAT MAY HAVE BEEN OR
MAY BE PROVIDED TO BUYER BY ANY DIRECTOR, OFFICER, EMPLOYEE, AGENT, CONSULTANT, OR REPRESENTATIVE
OF SELLER OR ANY OF ITS AFFILIATES OR SUBSIDIARIES). THE SELLER PARTIES MAKE NO REPRESENTATIONS OR
WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, TO BUYER REGARDING THE CONDITION, VALUE OR
QUALITY THE ASSETS OR THE PROBABLE SUCCESS OR PROFITABILITY OF THE ASSETS.

     9.9 Acknowledgment by Buyer.

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          (a) BUYER HEREBY ACKNOWLEDGES THAT IT HAS NOT RELIED ON ANY REPRESENTATION OR WARRANTY FROM
THE SELLER PARTIES OR ANY OF THEIR RESPECTIVE AFFILIATES OR SUBSIDIARIES, EXCEPT AS EXPRESSLY SET
FORTH IN THIS AGREEMENT. THE DISCLAIMERS OF CERTAIN WARRANTIES CONTAINED IN SECTION 9.8 AND
THIS SECTION 9.9 AND ELSEWHERE IN THIS AGREEMENT ARE “CONSPICUOUS DISCLAIMERS” FOR PURPOSES
OF ANY APPLICABLE LAW, RULE OR ORDER.

          (b) BUYER HEREBY ACKNOWLEDGES THAT (I) IT HAS MADE ITS OWN INDEPENDENT EXAMINATION,
INVESTIGATION, ANALYSIS AND EVALUATION OF THE BUSINESS, OPERATIONS, LIABILITIES, RESULTS OF
OPERATIONS, FINANCIAL CONDITION, TECHNOLOGY AND PROSPECTS OF THE ASSETS, (II) IT HAS BEEN PROVIDED
ACCESS TO PERSONNEL, PROPERTIES, PREMISES AND RECORDS OF THE ASSETS, FOR SUCH PURPOSE AND HAS
RECEIVED AND REVIEWED SUCH INFORMATION AND HAS HAD A REASONABLE OPPORTUNITY TO ASK QUESTIONS OF AND
RECEIVE ANSWERS RELATING TO SUCH MATTERS AS IT DEEMED NECESSARY OR APPROPRIATE TO CONSUMMATE THE
TRANSACTIONS CONTEMPLATED HEREIN, (III) IT HAS SUCH KNOWLEDGE AND EXPERIENCE IN FINANCIAL AND
BUSINESS MATTERS THAT IT IS CAPABLE OF EVALUATING THE MERITS AND RISKS OF THE ASSETS AND AN
INVESTMENT IN THE ASSETS AND (IV) THE SELLER PARTIES HAVE DELIVERED OR MADE AVAILABLE TO BUYER OR
ITS ADVISORS ALL INFORMATION WHICH BUYER OR SUCH ADVISORS HAVE REQUESTED FOR THE PURPOSE OF
DECIDING WHETHER OR NOT TO ENTER INTO THIS AGREEMENT.

          (c) IN ENTERING INTO THIS AGREEMENT, BUYER HAS RELIED UPON, AMONG OTHER THINGS, ITS DUE
DILIGENCE INVESTIGATION AND ANALYSIS OF THE ASSETS, AND BUYER:

          (i) ACKNOWLEDGES AND AGREES THAT NONE OF THE SELLER PARTIES OR ANY OF THEIR RESPECTIVE
DIRECTORS, MANAGERS, OFFICERS, EQUITY HOLDERS, EMPLOYEES, AFFILIATES, CONTROLLING PERSONS,
AGENTS, ADVISORS OR REPRESENTATIVES MAKES OR HAS MADE ANY REPRESENTATION OR WARRANTY, EITHER
EXPRESS OR IMPLIED, AS TO THE ACCURACY OR COMPLETENESS OF ANY OF THE INFORMATION PROVIDED OR
MADE AVAILABLE TO BUYER OR ITS DIRECTORS, MANAGERS, OFFICERS, EQUITY HOLDERS, EMPLOYEES,
AFFILIATES, CONTROLLING PERSONS, AGENTS, ADVISORS OR REPRESENTATIVES, INCLUDING ANY
INFORMATION, DOCUMENT, OR MATERIAL PROVIDED OR MADE AVAILABLE, OR STATEMENTS MADE, TO BUYER
OR ITS DIRECTORS, MANAGERS, OFFICERS, EQUITY HOLDERS, EMPLOYEES, AFFILIATES, CONTROLLING
PERSONS, AGENTS, ADVISORS OR REPRESENTATIVES DURING SITE OR OFFICE VISITS, IN ANY “DATA
ROOMS” (INCLUDING INTERNET-BASED DATA ROOMS), MANAGEMENT PRESENTATIONS OR SUPPLEMENTAL DUE
DILIGENCE INFORMATION PROVIDED TO BUYER

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OR ITS DIRECTORS, MANAGERS, OFFICERS, EQUITY HOLDERS, EMPLOYEES, AFFILIATES,
CONTROLLING PERSONS, AGENTS, ADVISORS OR REPRESENTATIVES IN CONNECTION WITH DISCUSSIONS OR
ACCESS TO MANAGEMENT OF THE SELLER PARTIES OR IN ANY OTHER FORM IN EXPECTATION OF THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, IN EACH CASE EXCEPT, WITH RESPECT TO SELLER
PARTIES, AS APPLICABLE, TO THE EXTENT EXPRESSLY SET FORTH IN THE REPRESENTATIONS AND
WARRANTIES SET FORTH IN ARTICLE III (COLLECTIVELY, THE “DUE DILIGENCE INFORMATION”);
AND

          (ii) ACKNOWLEDGES AND AGREES THAT (X) THE DUE DILIGENCE INFORMATION INCLUDES CERTAIN
PROJECTIONS, ESTIMATES AND OTHER FORECASTS, AND CERTAIN BUSINESS PLAN INFORMATION, (Y) THERE
ARE UNCERTAINTIES INHERENT IN ATTEMPTING TO MAKE SUCH PROJECTIONS, ESTIMATES AND OTHER
FORECASTS AND PLANS AND IT IS FAMILIAR WITH SUCH UNCERTAINTIES, AND (Z) IT IS TAKING FULL
RESPONSIBILITY FOR MAKING ITS OWN EVALUATIONS OF THE ADEQUACY AND ACCURACY OF ALL
PROJECTIONS, ESTIMATES AND OTHER FORECASTS AND PLANS SO FURNISHED TO IT AND ANY USE OF OR
RELIANCE BY IT ON SUCH PROJECTIONS, ESTIMATES AND OTHER FORECASTS AND PLANS SHALL BE AT ITS
SOLE RISK.

     9.10 Amendments. This Agreement may be amended or modified in whole or in part, and
terms and conditions may be waived, only by a duly authorized agreement in writing which makes
reference to this Agreement executed by all of the Parties.

     9.11 Publicity. All press releases or other public communications of any nature
whatsoever relating to the transactions contemplated by this Agreement, and the method of the
release for publication thereof, shall be subject to the prior written consent of Buyer and Gasco,
which consent shall not be unreasonably withheld, conditioned or delayed by such Party; provided,
however, that nothing herein shall prevent a Party from publishing such press releases or other
public communications as is necessary to satisfy such Party’s obligations at Law or under the
applicable rules of any stock or commodities exchange after consultation with the other Party.

     9.12 Non-Waiver. No waiver by either Party of any default by the other Party in the
performance of any provision, condition or requirement herein shall be deemed to be a waiver of, or
in any manner release the other Party from, performance of any other provision, condition or
requirement herein, nor shall such waiver be deemed to be a waiver of, or in any manner a release
of, the other Party from future performance of the same provision, condition or requirement. Any
delay or omission of either Party to exercise any right hereunder shall not impair the exercise of
any such right, or any like right, accruing to it thereafter. The failure of either Party to
perform its obligations hereunder shall not release the other Party from the performance of such
obligations.

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     9.13 Severability. If any provision of this Agreement is held invalid or
unenforceable by any court of competent jurisdiction, the other provisions of this Agreement shall
remain in full force and effect. The Parties further agree that if any provision contained herein
is, to any extent, held invalid or unenforceable in any respect under the Laws governing this
Agreement, they shall take any actions necessary to render the remaining provisions of this
Agreement valid and enforceable to the fullest extent permitted by Law and, to the extent
necessary, shall amend or otherwise modify this Agreement to replace any provision contained herein
that is held invalid or unenforceable with a valid and enforceable provision giving effect to the
intent of the Parties to the greatest extent legally permissible in order that the transactions
contemplated herein are consummated as originally contemplated to the fullest extent possible.

     9.14 Governing Law; Jurisdiction.

          (a) This Agreement, the other Transaction Documents, and any claim, controversy or dispute
arising under or related to this Agreement or the other Transaction Documents, the transactions
contemplated hereby or thereby or the rights, duties and relationship of the parties hereto and
thereto, shall be governed by and construed and enforced in accordance with the laws of the State
of Delaware, except to the extent that the laws of the State of Utah are mandatorily applicable to
the nature of any property interests and any conveyances of property interests involving real
property located in the State of Utah.

     9.15 Arbitration.

          (a) Agreement to Arbitrate. Any and all claims, counterclaims, demands, causes of
action, disputes, controversies and other matters in question arising out of or relating to this
Agreement, or the alleged breach hereof, or in any way relating to the subject matter of this
Agreement, or the relationship between the Parties created by this Agreement, except for any action
by Buyer to seek specific performance pursuant to Section 5.19(b), which action shall be
brought in the United States District Court for the District of Delaware or any Delaware State
court sitting in Wilmington, Delaware, (each a “Dispute”), shall be finally resolved by binding
arbitration administered by the American Arbitration Association (“AAA”) under the AAA Commercial
Rules (the “Rules”) then in force, to the extent such Rules are not inconsistent with the
provisions of this Agreement, regardless of whether some or all of such Disputes allegedly are (a)
extra-contractual in nature; (b) sound in contract, tort, or otherwise; are provided by federal or
state statute, common law or otherwise; or (d) seek damages or any other relief whether in law, in
equity, or otherwise.

          (b) Venue, Procedural Issues. The seat of this arbitration shall be in Wilmington,
Delaware. The hearings in this Arbitration shall be held at the seat or at such other place as the
Parties may agree. The Parties agree that the United States Arbitration Act, Title 9, United
States Code, as modified by this Agreement, shall govern procedural aspects of the arbitration.

          (c) Powers of the Arbitrators, Limitations on Remedies. The making, validity,
construction, and interpretation of this agreement to arbitrate, and all procedural aspects of the
Arbitration conducted pursuant to this agreement to arbitrate, including but not limited to, the
determination of the issues that are subject to arbitration (i.e., arbitrability), the scope of the

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arbitrable issues, the application of this agreement to arbitrate to signatories and
non-signatories, shall be decided by the Panel. The Panel shall have the power to award all
remedies available under this Agreement and, to the extent not excluded by this Agreement, the
applicable law. The Panel shall also have the power to enter such interim orders as it deems
necessary, including, without limitation, orders to preserve the subject matter of the Dispute or
to preserve or adjust the status of the Parties pending resolution of the Dispute in Arbitration.
The Parties agree to accept and honor any interim orders and agree that any such interim orders may
be enforced as necessary in any court having relevant jurisdiction. The Panel shall have the power
to assess the attorneys’ fees, costs and expenses of the Arbitration (including the arbitrators’
fees and expenses) against one or more of the Parties in whatever manner or allocation it deems
appropriate. The Panel shall not decide the Dispute ex aequo et bono or as amiable compositeur or
by reliance on any other doctrine or principle that would permit the Panel to avoid the application
of this Agreement and/or the governing law. The Panel shall not have the authority to modify or
amend any term or provision of this Agreement.

          (d) Parties. This Section 9.15 shall apply to any Dispute between the
Parties, and it shall also apply to any (a) Dispute between a Party and any Affiliate of the other
Party, (b) Dispute between a Party and any officer, director, employee, representative, agent,
successor or assign of the other Party or of an Affiliate of such other Party, (c) Dispute between
an Affiliate of one Party and an Affiliate of the other Party, and (d) Dispute between an Affiliate
of a Party and an officer, director, employee, representative, agent, successor or assign of the
other Party or of an Affiliate of the other Party. With regard to any Dispute, the Affiliates of
the Parties and the officers, directors, employees, representatives, agents, successors and assigns
of the Parties, and their Affiliates, are intended third party beneficiaries of the agreement to
arbitrate set out in this Section 9.15.

          (e) Selection of the Arbitral Panel. The arbitral panel shall be composed of three
neutral arbitrators (the “Panel”). The Party requesting arbitration (the “Claimant”) shall appoint
one (1) arbitrator at the time it files its request for arbitration with the AAA. The Party named
as respondent by the Claimant (“Respondent”) shall appoint one (1) arbitrator within the time
specified in the Rules. If a Party fails to appoint an arbitrator, then that arbitrator shall be
appointed in accordance with the Rules. The two arbitrators nominated by Claimant and Respondent
shall together nominate the third arbitrator, who shall be the Chairman of the Panel, by mutual
agreement within fifteen (15) days of the appointment of the second arbitrator. If the
party-appointed arbitrators fail to timely appoint a third arbitrator, the AAA shall make the
appointment.

          (f) The Award. The award shall be in writing, shall give reasons for the decisions
reached by the Tribunal and shall be signed and dated by the arbitrators, and a copy of the award
shall be delivered to each of the Parties. The Party against which an award assesses a monetary
obligation or enters an injunctive or mandatory order shall pay that obligation or comply with that
order on or before the 30th calendar day following the receipt of the award or by such other date
as the award may provide. The award shall be final and binding on the parties and may be confirmed
in, and judgment upon the award entered by, any court having jurisdiction over the Parties. The
Tribunal’s award shall be entitled to all of the protections and benefits of a final judgment as to
any Dispute, including compulsory counterclaims, that were or could have

57

 

been presented to the Tribunal, and shall be final and binding on the Parties and
non-appealable to the maximum extent permitted by law.

          (g) Exclusive Method of Resolving Claims; Assistance of Courts. It is the intent of
the Parties that the Arbitration shall be conducted expeditiously, without initial recourse to the
courts and without interlocutory appeals of the Panel’s decisions to the courts. However, if a
Party refuses to honor its obligations under this agreement to arbitrate, the other Party may
obtain appropriate relief staying such litigation and/or compelling arbitration in any court having
jurisdiction over the refusing Party; each Party hereby consenting to personal jurisdiction and
venue in the federal and State courts in Wilmington, Delaware; in any event, the order compelling
arbitration shall require that the arbitration proceedings take place in Wilmington, Delaware and
in the manner specified herein. The Parties may apply to any court having relevant jurisdiction
for orders requiring witnesses to obey subpoenas issued by the arbitrators. Prior to the
appointment of the chairman, a Party may apply to any court having relevant jurisdiction for an
order preserving the status quo ante and/or evidence in anticipation of arbitration (for avoidance
of doubt, such an application is not intended to constitute waiver of the right to arbitrate
Disputes nor does it refer any Dispute to court for decision). Any and all of the Tribunal’s
orders and decisions, including, without limitation, interim orders, may be enforced by any court
having relevant jurisdiction. Each Party agrees that arbitration pursuant to this
Section 9.15 shall be the exclusive method for resolving all Disputes and that it will not
commence an action or proceeding, except as provided in this Section 9.15. The Panel’s
award may be confirmed in, and judgment upon the award entered by, any federal or State court
having jurisdiction over the Parties. Each party hereby consents to personal jurisdiction over
itself and its property and venue in the federal and State courts in Wilmington, Delaware.

          (h) Confidentiality. Except to the extent necessary for proceedings relating to
enforcement of the arbitration agreement, the award, or other, related rights of the Parties, the
fact of the arbitration, the arbitration proceeding itself, all evidence, memorials or other
documents exchanged or used in the arbitration and the arbitrators’ award shall be maintained in
confidence by the Parties to the fullest extent permitted by applicable law. However, a violation
of this covenant shall not affect the enforceability of this agreement to arbitrate or of the
arbitrators’ award.

          (i) Severability. The provisions of this agreement to arbitrate are independent of
the remaining provisions of the Agreement and the Parties intend that they shall continue in effect
even though one or more provisions of the Agreement shall be determined null or void. This
agreement to arbitrate shall also survive the termination or expiration of this Agreement.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

58

 

     IN WITNESS WHEREOF this Agreement has been duly executed and delivered by each Party as of the
date first above written.

	 	 	 	 	 
	 	SELLER PARTIES:

RIVERBEND GAS GATHERING, LLC
 	 
	 
	 	By:  	GASCO ENERGY, INC.
 	 
	 	 	ITS MANAGING MEMBER 	 
	 	 	 	 
	 	By:  	                                              /s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 
	 	GASCO ENERGY, INC.
 	 
	 
	 	By:  	/s/ W. King Grant
 	 
	 	 	Name:  	W. King Grant 	 
	 	 	Title:  	President and Chief Financial Officer 	 
	 

Signature Page

Asset Purchase Agreement

 

 

	 	 	 	 	 
	 	BUYER:

MONARCH NATURAL GAS, LLC
 	 
	 
	 	By:  	/s/ Greg W. Sales
 	 
	 	 	Name:  	Greg W. Sales 	 
	 	 	Title:  	Chairman & CEO 	 
	 

Signature Page

Asset Purchase Agreement

 

 

Exhibit A

Form of Gathering Agreement

Exhibit A — 1

 

 

Exhibit B

Form of Transition Services Agreement

Exhibit B — 1

 

 

Exhibit C

Form of Salt Water Disposal Service Agreement

Exhibit C — 1

 

 

Exhibit D

Form of Assignment and Assumption Agreement

Exhibit D — 1

 

 

Exhibit E

Form of Assignment of Real Property Interests

Exhibit E — 1

 

 

Exhibit F

Form of FIRPTA Certificates

Exhibit F

 

 

Exhibit G-1

EPA Consent Decree Draft

Exhibit G

 

 

Exhibit G-2

Buyer Mark-up of the EPA Consent Decree Draft

Exhibit G

 

 

Disclosure Schedules

Seller Parties’ Disclosure Schedules (attached)

Buyer’s Disclosure Schedules (attached)

Disclosure Schedules

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