Document:

Second Supplemental Indenture

 EXHIBIT 4.2 
 SECOND SUPPLEMENTAL INDENTURE 
 Dated as of December 8, 2011

 To 
 INDENTURE 
 Dated as of April 6, 2011 

4.875% SENIOR NOTES DUE 2019 
 VERISK ANALYTICS, INC. 
 As the Company 

INSURANCE SERVICES OFFICE, INC. 
 ISO STAFF SERVICES, INC. 
 ISO CLAIMS SERVICES, INC. 

AIR WORLDWIDE CORPORATION 
 ISO SERVICES, INC. 
 XACTWARE SOLUTIONS, INC. 

VERISK HEALTH, INC. 
 INTERTHINX, INC. 
 VERISK HEALTH SOLUTIONS, INC. 

Together with Such Other Guarantors as may be Added from Time to Time 

As Guarantors 
 WELLS FARGO BANK, NATIONAL ASSOCIATION 
 As Trustee 

 TABLE OF CONTENTS 

 

							
	ARTICLE I	  
	
	 Definitions and Incorporation

by Reference
	   

  

			
	 Section 1.01
	  	Relationship with Base Indenture	  	 	1	  
	 Section 1.02
	  	Definitions	  	 	2	  
	
	ARTICLE II	  
	
	The Notes	  
			
	 Section 2.01
	  	Form and Dating	  	 	9	  
	 Section 2.02
	  	Issuance of Additional Notes	  	 	10	  
	
	ARTICLE III	  
	
	Redemption and Prepayment	  
			
	 Section 3.01
	  	Notice of Redemption; Selection of Securities	  	 	11	  
	 Section 3.02
	  	Notes Redeemed in Part	  	 	11	  
	 Section 3.03
	  	Optional Redemption	  	 	11	  
	 Section 3.04
	  	Mandatory Redemption	  	 	11	  
	
	ARTICLE IV	  
	
	Particular Covenants	  
			
	 Section 4.01
	  	Limitation on Liens	  	 	12	  
	 Section 4.02
	  	Limitation on Sale/Leaseback Transactions	  	 	13	  
	 Section 4.03
	  	Offer to Purchase Upon Change of Control Repurchase Event	  	 	14	  
	
	ARTICLE V	  
	
	Defaults	  
			
	 Section 5.01
	  	Defaults	  	 	16	  
	
	ARTICLE VI	  
	
	Guarantees	  
			
	 Section 6.01
	  	Guarantees of the Notes	  	 	17	  
	 Section 6.02
	  	Effect of Guarantees; Guarantors to be bound by Indenture	  	 	17	  

  
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	 Section 6.03
	  	Execution and Delivery of the Guarantees	  	 	17	  
	 Section 6.04
	  	Termination of Guarantees	  	 	17	  
	
	ARTICLE VII	  
	
	Miscellaneous	  
			
	 Section 7.01
	  	Trust Indenture Act Controls	  	 	17	  
	 Section 7.02
	  	Governing Law	  	 	17	  
	 Section 7.03
	  	Successors	  	 	17	  
	 Section 7.04
	  	Severability	  	 	17	  
	 Section 7.05
	  	Counterpart Originals	  	 	18	  
	 Section 7.06
	  	Table of Contents, Headings, Etc	  	 	18	  
	 Section 7.07
	  	Validity or Sufficiency of Supplemental Indenture	  	 	18	  
	 Section 7.08
	  	Waiver of Jury Trial	  	 	18	  

  
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 SECOND SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
December 8, 2011, among Verisk Analytics, Inc., a Delaware corporation, as the Company (the “Company”), Insurance Services Office, Inc., a Delaware corporation (“ISO”), ISO Staff Services, Inc., a Delaware
corporation, Xactware Solutions, Inc., a Delaware corporation, ISO Services, Inc., a Delaware corporation, ISO Claims Services, Inc., a Delaware corporation, AIR Worldwide Corporation, a Delaware corporation, Interthinx, Inc., a California
corporation, Verisk Health, Inc., a Massachusetts corporation, and Verisk Health Solutions, Inc., a Delaware corporation (formerly D2Hawkeye, Inc.), together with such other guarantors as may be added from time to time (each a
“Guarantor” and collectively, the “Guarantors”) and Wells Fargo Bank, National Association, a national banking association, as Trustee (the “Trustee”). 

WHEREAS, the Company and each of the Guarantors have heretofore executed and delivered to the Trustee an indenture dated as of
April 6, 2011 (the “Base Indenture”), providing for the issuance from time to time of one or more series of the Company’s senior notes and guarantees thereof by the Guarantors. 

WHEREAS, the Company and the Guarantors desire and have requested the Trustee pursuant to Section 9.01 of the Base Indenture to join
with it in the execution and delivery of this Supplemental Indenture in order to supplement the Base Indenture as and to the extent set forth herein to provide for the issuance and the terms of the Notes (as defined below). 

WHEREAS, the execution and delivery of this Supplemental Indenture has been duly authorized by a resolution of the Board of Directors of
the Company and each Guarantor. 
 WHEREAS, all conditions and requirements necessary to make this Supplemental Indenture a
valid, binding and legal instrument in accordance with its terms have been performed and fulfilled by the parties hereto and the execution and delivery thereof have been in all respects duly authorized by the parties hereto. 

NOW, THEREFORE, the Company, the Guarantors and the Trustee agree as follows for the benefit of each other and for the equal and ratable
benefit of the Holders (as defined herein) of the 4.875% Senior Notes due 2019 (the “Notes”): 
 ARTICLE I

 DEFINITIONS AND INCORPORATION 
 BY REFERENCE 
 Section 1.01 Relationship with Base
Indenture. The terms and provisions contained in the Base Indenture will constitute, and are hereby expressly made, a part of this Supplemental 

  
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Indenture and the Company, the Guarantors and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.
However, to the extent any provision of the Base Indenture conflicts with the express provisions of this Supplemental Indenture, the provisions of this Supplemental Indenture will govern and be controlling in respect of the Notes. 

The Trustee accepts the amendment of the Base Indenture effected by this Supplemental Indenture and agrees to execute the trust created
by the Base Indenture as hereby amended, but only upon the terms and conditions set forth in this Supplemental Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee in the performance
of the trust created by the Base Indenture. 
 Section 1.02 Definitions. Capitalized terms used herein without
definition shall have the respective meanings set forth in the Base Indenture. The following terms have the meanings given to them in this Section 1.02: 
 “Additional Notes” has the meaning assigned to such term in Section 2.02 hereof. 
 “Attributable Debt” means, when used in connection with a Sale/Leaseback Transaction, at the time of determination, the lesser of: 

(1) the fair value of such property (as determined in good faith by the Board of Directors of the Company), and 

(2) the present value of the total net amount of rent required to be paid under the lease related to such property during the remaining
term thereof (including any renewal term or period for which such lease has been extended), discounted at the rate of interest set forth or implicit in the terms of such lease, compounded semi-annually as determined by the Company’s principal
accounting or financial officer. 
 “Base Indenture” has the meaning set forth in the preamble to this
Supplemental Indenture, as amended, supplemented or otherwise modified from time to time in accordance with the terms thereof. 

“Business Day” means any day that is not a Saturday, a Sunday or a day on which banking institutions are not required to
be open in the State of New York. 
 “Change of Control” means the occurrence of any one or more of the
following events: 

  
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 (1) the consummation of any transaction (including, without limitation, any merger or
consolidation) the result of which is that any “Person” or “group” of related Persons (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) becomes the “beneficial owner”
(as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that such Person or group shall be deemed to have “beneficial ownership” of all shares that any such Person or group has the right to acquire,
whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of more than 50% of the total voting power of the Company’s Voting Stock (for the purposes of this clause, such Person or group shall be
deemed to beneficially own any of the Company’s Voting Stock held by a parent entity if such Person or group is the “beneficial owner,” directly or indirectly, of a majority of the voting power of the Voting Stock of such parent
entity); 
 (2) the Company consolidates with, or merges with or into, any Person, or any Person consolidates with, or merge
with or into the Company, in any such event pursuant to a transaction in which any the Company’s outstanding Voting Stock or the outstanding Voting Stock of such other Person is converted into or exchanged for cash, securities or other
property, other than any such transaction where the shares of the Company’s Voting Stock outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the Voting Stock of the surviving
Person immediately after giving effect to such transaction; 
 (3) the first day on which a majority of the members of the
Company’s Board of Directors, as applicable, cease to be Continuing Directors; 
 (4) the direct or indirect sale, lease,
transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the Company’s assets and the assets of the Company’s subsidiaries taken as
a whole to any “Person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934) other than to the Company or one of its subsidiaries; or 

(5) the adoption by the Company’s stockholders of a plan or proposal for the Company’s liquidation or dissolution. 

Notwithstanding the foregoing, a transaction will not be considered to be a Change of Control if (a) the Company becomes a direct or indirect
wholly-owned subsidiary of a holding company and (b) immediately following that transaction, (1) the direct or indirect holders of the Voting Stock of the holding company are substantially the same as the holders of the Company’s
Voting Stock immediately prior to that transaction or (2) no Person or group is the beneficial owner, directly or indirectly, of more than a majority of the Voting Stock of the holding company. 

“Change of Control Offer” has the meaning assigned to such term in Section 4.03 hereof. 

  
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 “Change of Control Payment” has the meaning assigned to such term in
Section 4.03 hereof. 
 “Change of Control Payment Date” has the meaning assigned to such term in
Section 4.03 hereof. 
 “Change of Control Repurchase Event” means the occurrence of both a Change of
Control and a Rating Decline. 
 “Common Stock” of any Person means any and all shares, interests or other
participations in, and other equivalents (however designated and whether voting or non-voting) of, such Person’s common stock, and includes, without limitation, all series and classes of such Common Stock. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as
having a maturity comparable to the remaining term of the Notes to be redeemed that would be used, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of comparable
maturity to the remaining term of the Notes. 
 “Comparable Treasury Price” means, with respect to any date of
redemption, the Reference Treasury Dealer Quotations for that date of redemption. 
 “Consolidated Total
Assets” means the total assets of the Company and its consolidated subsidiaries, as set forth on the Company’s most recent consolidated balance sheet, as determined by GAAP. 

“Continuing Director” means, as of any date of determination, any member of the Company’s Board of Directors who
(a) was a member of the Company’s Board of Directors on the date of this Supplemental Indenture or (b) was nominated for election or elected to the Company’s board of directors with the approval of a majority of the Continuing
Directors who were members of the Company’s Board of Directors at the time of such nomination or election (either by a specific vote or by approval of the Company’s proxy statement in which such member was named as a nominee for election
as a director, without objection to such nomination). 
 “default” means any event that is, or after notice or
passage of time or both would be, an Event of Default under the Indenture. 

  
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 “Depositary” means, with respect to the Notes issuable or issued in whole
or in part in global form, the Person specified in Section 2.01 hereof as the Depositary with respect to the Notes, and any and all successors thereto appointed as depositary hereunder and having become such pursuant to the applicable provision
of this Supplemental Indenture. 
 “DTC” has the meaning assigned to such term in Section 2.01 hereof.

 “Fitch” means Fitch, Inc., a subsidiary of Fimalac, S.A., and its successors. 

“GAAP” means with respect to any computations required or permitted under the Indenture, generally accepted accounting
principles in effect in the United States as in effect from time to time; provided, however if the Company is required by the SEC to adopt (or is permitted to adopt and so adopts) a different accounting framework, including but not
limited to the International Financial Reporting Standards, “GAAP” shall mean such new accounting framework as in effect from time to time, including, without limitation, in each case, those accounting principles set forth in the opinions
and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other statements by such other entity as
approved by a significant segment of the accounting profession. 
 “Global Note Legend” means the legend set
forth in Section 2.01(e) hereof, which is required to be placed on all Global Notes issued under this Supplemental Indenture. 
 “Global Notes” means, individually and collectively, each of the Global Notes, in the form of Exhibit A hereto issued in accordance with Section 2.01 hereof. 

“Guarantor” means the Persons named as “Guarantors” in the first paragraph of this Indenture and, as the
context requires, any additional Persons added as guarantors pursuant to Section 6.03 hereof, until a successor replaces any such Guarantor and, thereafter, “Guarantors” shall mean the Guarantors not so replaced together with any such
successors. 
 “Holder” means a Person in whose name a Note is registered. 

“Indenture” means the Base Indenture, as supplemented by this Supplemental Indenture, governing the Notes, together, as
amended, supplemented or restated from time to time. 
 “Independent Investment Banker” means the Reference
Treasury Dealer appointed by the Company. 

  
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 “Indirect Participant” means a Person who holds a beneficial interest in a
Global Note through a Participant. 
 “Initial Notes” means the first $250,000,000 aggregate principal amount
of Notes issued under this Supplemental Indenture on the date hereof. 
 “Investment Grade” means BBB- or
higher by S&P and Baa3 or higher by Moody’s, BBB- or higher by Fitch and BBB- or the equivalent of such ratings by S&P, Fitch or Moody’s, if S&P, Fitch or Moody’s shall not make a rating on the Notes publicly available, of
another Rating Agency. 
 “ISO” has the meaning assigned to it in the preamble to this Supplemental Indenture.

 “Lien” means a mortgage, security interest, pledge, lien, charge or other encumbrance. 

“Moody’s” means Moody’s Investors Service, Inc., a subsidiary of Moody’s Corporation, and its successors.

 “Notes” has the meaning assigned to it in the preamble to this Supplemental Indenture. 

“Participant” means, with respect to the Depositary, a Person who has an account with the Depositary. 

“Permitted Liens” has the meaning assigned to it in Section 4.01 hereof. 

“Permitted Subsidiary Acquisition Indebtedness” means indebtedness of any subsidiary of the Company which is:

 (a) owed by any Person at the time (i) such Person becomes a subsidiary of or is merged with or into the Company or
a subsidiary of the Company or (ii) a subsidiary acquires any property from such Person and which indebtedness is expressly assumed by such subsidiary at the time of such acquisition; provided that (A) such indebtedness was not created,
incurred, or assumed by such Person or such subsidiary in contemplation of such acquisition, (B) in the event such indebtedness shall be guaranteed, such guarantee shall be unsecured and shall be given by ISO and/or the Company, and
(C) the principal amount of such indebtedness shall not be increased at any time after it is first acquired or assumed, as applicable, or 

  
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 (b) incurred by such subsidiary to finance or to refinance such acquisition; provided
that (i) such indebtedness shall be incurred substantially simultaneously with the consummation of such acquisition, (ii) the principal amount of such indebtedness incurred in connection with such acquisition shall not be increased at any
time after it is first incurred, (iii) the principal amount of such indebtedness (together with any accrued interest thereon and closing costs relating thereto) shall at no time exceed one hundred percent (100%) of the original purchase
price of such acquisition, and (iv) in the event such indebtedness shall be guaranteed, such guarantee shall be unsecured and shall be given by ISO and/or the Company. 
 “Property” means any property or asset, whether real, personal or mixed, or tangible or intangible, including shares of capital stock. 

“Rating Agency” means each of S&P, Fitch and Moody’s or, to the extent S&P, Fitch or Moody’s do not
make a rating on the Notes publicly available, a “nationally recognized statistical rating organization” (as such term is defined in Section 3(a)(62) of the Exchange Act) or “organizations”, as the case may be, selected by
the Company (as certified by a resolution of the Company’s board of directors), which shall be substituted for S&P, Fitch or Moody’s, as the case may be. 
 “Rating Decline” means the Notes are rated below Investment Grade by all of the Rating Agencies on any date during the period from the date 60 days prior to the first public notice
of an arrangement that could result in a Change of Control until the end of the 60 day period following the consummation of such Change of Control (which period will be extended following the consummation of such Change of Control for so long
as any Rating Agency has publicly announced that it is considering a possible downgrade in its rating of the Notes). 

“Reference Treasury Dealer” means each of J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner &
Smith Incorporated and their respective successors and two other nationally recognized investment banking firms that are primary U.S. Government securities dealers specified from time to time by the Company so long as the entity is a primary
U.S. Government securities dealer. 
 “Reference Treasury Dealer Quotations” means, with respect to each
Reference Treasury Dealer and any date of redemption, the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the
Company by such Reference Treasury Dealer at 5:00 p.m., New York City time, on the third Business Day preceding that date of redemption, after excluding the highest and lowest of such quotations, unless the Company obtains fewer than four such
quotations, in which case the average of all of such quotations. 
 “Remaining Scheduled Payments” means, with
respect to each Note to be redeemed, the remaining scheduled payments of the principal thereof and interest thereon that would be due 

  
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after the related date of redemption therefor; provided, however, that, if that date of redemption is not an interest payment date with respect to such Note, the amount of the next
succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that date of redemption. 
 “S&P” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., and its successors. 

“Sale/Leaseback Transaction” means an arrangement relating to property now owned or hereafter acquired whereby either
the Company transfers, or any of its subsidiaries transfers, such property to a Person and either the Company or any of its subsidiaries leases it back from such Person. 
 “subsidiary” means, with respect to any Person, any corporation, association, partnership or other business entity of which more than 50% of the total voting power of shares of capital
stock or other interests (including partnership interests) entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly,
by (a) such Person, (b) such Person and one or more subsidiaries of such Person or (c) one or more subsidiaries of such Person. 
 “Supplemental Indenture” means this Second Supplemental Indenture, dated as of the date hereof, by and among the Company, the Guarantors and the Trustee, governing the Notes, as amended,
supplemented or otherwise modified from time to time in accordance with the Base Indenture and the terms hereof. 

“Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semi-annual equivalent
yield to maturity, computed as of the third Business Day immediately preceding that date of redemption, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for that date of redemption. 
 “Voting Stock” of any specified Person as of any
date means the capital stock of such Person that is at the time entitled to vote generally in the election of the board of directors of such Person. With respect to the Company, references to “Voting Stock” shall refer to the
Company’s Class A Common Stock, par value $0.001 per share. 

  
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 ARTICLE II 
 THE NOTES 
 Section 2.01 Form and Dating. (a) The
Notes and the Trustee’s certificate of authentication included thereon will be substantially in the form of Exhibit A hereto. The Notes may have notations, legends or endorsements required by law, stock exchange rule or usage. Each
Note will be dated the date of its authentication. The Notes will initially be issued in the form of one or more Registered Global Securities, without coupons, in minimum denominations of $2,000 with integral multiples of $1,000 in excess thereof.

 The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Supplemental
Indenture, and the Company, the Guarantors and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby. However, to the extent any provision of this
Supplemental Indenture or any Note conflicts with the express provisions of the Base Indenture, the provisions of this Supplemental Indenture or the Notes, as the case may be, will govern and be controlling. 

(b) Notes issued in global form will be substantially in the form of Exhibit A attached hereto (including the
Global Note Legend thereon). Each Global Note will represent such of the outstanding Notes as will be specified therein and each will provide that it will represent the aggregate principal amount of outstanding Notes from time to time endorsed
thereon and that the aggregate principal amount of outstanding Notes represented thereby may from time to time be reduced or increased, as appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the amount of
any increase or decrease in the aggregate principal amount of outstanding Notes represented thereby will be made by the Trustee or the custodian of the Notes, at the direction of the Trustee, in accordance with written instructions given by the
Holder thereof as required by Section 2.02 hereof. The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with respect to the Global Notes. 

(c) The Notes shall not be exchangeable for nor convertible into the common stock of the Company or any other security.

 (d) The Company will not pay additional amounts on Notes held by a person who is not a U.S. person in respect
of any tax, assessment or governmental charge withheld or deducted. 
 (e) The following legends will appear on
the face of all Global Notes issued under this Supplemental Indenture. 

  
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 “THIS SECURITY IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE
HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO
CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE &
CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY
THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR
DEPOSITARY.” 
 Section 2.02 Issuance of Additional Notes. The Company will be entitled, upon delivery of an
Officers’ Certificate and an Opinion of Counsel, to issue Additional Notes under this Supplemental Indenture which will have identical terms as the Initial Notes issued on the date hereof, other than with respect to the date of issuance, the
issue price and, in some cases, the first interest payment date (“Additional Notes”), provided that the Company and the Guarantors are in compliance with the covenants contained in this Supplemental Indenture and the Base Indenture.
The Initial Notes issued on the date hereof and any Additional Notes issued will be treated as a single class for all purposes under this Supplemental Indenture. 
 With respect to any Additional Notes, the Company will set forth in a resolution of its Board of Directors and an Officers’ Certificate, a copy of each which will be delivered to the Trustee, the
following information: 
 (a) the aggregate principal amount of such Additional Notes to be authenticated and delivered
pursuant to this Supplemental Indenture; and 
 (b) the issue price, the issue date, the initial interest payment date and
the CUSIP number of such Additional Notes. 

  
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 ARTICLE III 
 REDEMPTION AND PREPAYMENT 
 Section 3.01 Notice of Redemption;
Selection of Securities. The Company will send by first class mail notice of any redemption at least 30 days but not more than 60 days before the date of redemption to each Holder of the Notes to be redeemed setting forth the
information to be stated in such notice as provided in Article 3 of the Base Indenture. If less than all of the Notes are to be redeemed, the Notes to be redeemed shall be selected by the Trustee by such method as the Trustee deems to be fair and
appropriate and in accordance with the procedures of the Depositary. 
 Section 3.02 Notes Redeemed in Part. No
Notes of principal amount of $2,000 or less may be redeemed in part. 
 Section 3.03 Optional Redemption. The
Company may, at its option, on any one or more occasions, redeem, in whole or in part, at a redemption price equal to the greater of the following amounts, plus, in each case, accrued and unpaid interest, if any, on the principal amount of the Notes
being redeemed to, but excluding, the date of redemption (subject to the right of the holders of record on the relevant record date to receive interest due on the relevant interest payment date): 

(i) 100% of the principal amount of the Notes to be redeemed; and 

(ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of the Notes to be redeemed, discounted to the
date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis points, provided that the principal amount of a Note remaining outstanding after
redemption in part will be $2,000 or an integral multiple of $1,000 in excess thereof. 
 If the date of redemption is on or after an interest
record date and on or before the related interest payment date, the accrued and unpaid interest, if any, will be paid to the Person in whose name the Note is registered at the close of business on such interest record date, and no additional
interest is payable to Holders whose Notes will be subject to redemption by the Company. Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest shall cease to accrue on the Notes or the portions
thereof called for redemption. 
 Section 3.04 Mandatory Redemption. The Company is not required to make any
mandatory redemption or sinking fund payments with respect to the Notes. 

  
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 ARTICLE IV 
 PARTICULAR COVENANTS 
 Section 4.01 Limitation on
Liens. (a) The Company will not, and will not permit any of its subsidiaries to create, assume, incur or permit to exist any Lien on any of its or such subsidiaries’ property or assets, whether owned on the date of issuance of the
Notes or thereafter acquired, or upon any income or profits therefrom, in order to secure any of its indebtedness or that of its subsidiaries, unless the Notes are at least equally and ratably secured with such secured indebtedness (together with,
if the Company so determines, any other Indebtedness of or guaranty by the Company or such subsidiary then existing or thereafter created that is not subordinated to the Notes) for so long as such other indebtedness is so secured; provided,
however, that the above restrictions shall not apply to the following (the “Permitted Liens”): 
 (i) Liens on property or other assets of any Person existing at the time such Person becomes a subsidiary, provided that such Lien was not incurred in anticipation of such Person becoming a
subsidiary; 
 (ii) Liens in respect of Permitted Subsidiary Acquisition Indebtedness; provided that
(i) each such Lien (A) shall be created substantially simultaneously with the acquisition of the related property or properties or (B) shall have existed on any property of a Person (1) at the time such Person becomes a
subsidiary of or is merged with or into the Company or its subsidiary or (2) at the time a subsidiary acquires such property from such Person, and, in the case of each of the foregoing clauses (1) and (2), such Lien shall not have been
created in contemplation of such acquisition, and (ii) no such Lien at any time shall encumber any property or properties other than the related property or properties financed by such Permitted Subsidiary Acquisition Indebtedness and the
proceeds thereof; 
 (iii) Liens on property or assets to secure any indebtedness incurred prior to, at the time
of, or within 270 days after, the acquisition of such property or in the case of real property, the completion of construction, the completion of improvements or the beginning of substantial commercial operation of such real property for the
purpose of financing all or any part of the purchase price of such real property, the construction thereof or the making of improvements thereto; 
 (iv) Liens in the Company’s favor or in favor of any Guarantor of the Notes; 
 (v) Liens existing on the date of issuance of the Notes; 

  
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 (vi) Liens on property or other assets of a Person existing at the time the
Person is merged into or consolidated with the Company or any of its subsidiaries or at the time of a sale, lease or other disposition of the properties of a Person as an entirety or substantially as an entirety to either the Company or any of its
subsidiaries provided that such Lien was not incurred in anticipation of the merger or consolidation or sale, lease or other disposition; 
 (vii) extensions, renewals or replacements (or successive extensions, renewals or replacements) in whole or in part of any Lien referred to above without increase of the principal of the indebtedness
(plus any premium or fee payable in connection with any such extension, renewal or replacement) secured by the Lien; provided, however, that any Permitted Liens shall not extend to or cover any of the Company’s or its
subsidiaries’ property, as the case may be, other than the property specified in the foregoing clauses and improvements to this property; and 
 (viii) Liens arising in connection with trade letters of credit issued for the Company’s account or the account of a subsidiary securing the reimbursement obligations in respect of such letters of
credit, provided, that such Liens encumber only the property being acquired through payments made under such letters of credit or the documents of title and shipping and insurance documents relating to such property. 

(b) Notwithstanding Section 4.01(a), the Company and any of its subsidiaries may create, assume, incur or guarantee
indebtedness secured by a Lien without equally and ratably securing the Notes; provided that at the time of such creation, assumption, incurrence or guarantee, after giving effect thereto and to the retirement of any indebtedness that is
concurrently being retired, the sum of (a) the aggregate amount of all outstanding indebtedness secured by Liens other than Permitted Liens, and (b) the Attributable Debt of all of the Company’s and its subsidiaries’
Sale/Leaseback Transactions permitted by Section 4.02(b)(v) does not at such time exceed 7.5% of Consolidated Total Assets. 
 Section 4.02 Limitation on Sale/Leaseback Transactions. (a) The Company will not, and will not permit any of its subsidiaries to, enter into any Sale/Leaseback Transaction with respect
to any real or personal property, whether now owned or hereafter acquired by the Company or any of its subsidiaries, unless: 
 (i) The Company or such subsidiary would, at the time of entering into such arrangement, be able to incur indebtedness secured by a Lien on the property involved in the transaction at least equal in
amount to the Attributable Debt with respect to such Sale/Leaseback Transaction, without equally and ratably securing the Notes under Section 4.01 above; or 

(ii) the net proceeds of the sale of the property to be leased are at least equal to such property’s fair market
value, as determined by the Company’s Board of 

  
 13 

 
Directors, and the proceeds are applied within 270 days of the effective date of the Sale/Leaseback Transaction to the purchase, construction, development or acquisition of assets or to the
repayment of any of the Company’s indebtedness that ranks equally with the Notes or any indebtedness of the Company’s subsidiaries. 
 (b) Notwithstanding Section 4.02(a), the Company shall be permitted to enter to Sale/Leaseback Transactions, without complying with the requirements of Section 4.02(a) above, if: 

(i) the Sale/Leaseback Transaction was entered into prior to the date of issuance of the Notes; 

(ii) the Sale/Leaseback Transaction is between the Company and any wholly-owned subsidiary of the Company, or between
wholly-owned subsidiaries of the Company; 
 (iii) the Sale/Leaseback Transaction involves leases for a period of
no longer than three years; 
 (iv) the Sale/Leaseback Transaction is one in which the lease for the property or
asset is entered into within 180 days after the date of acquisition, completion of construction or commencement of full operations of such property or asset, whichever is latest; or 

(v) after giving effect thereto, the aggregate amount of all Attributable Debt with respect to Sale/Leaseback Transactions
existing at such time that could not have been entered into except for the provisions described in this paragraph, together with the aggregate amount of all outstanding indebtedness secured by Liens permitted under Section 4.01(b) above, does
not exceed 7.5% of Consolidated Total Assets. 
 Section 4.03 Offer to Purchase Upon Change of Control Repurchase
Event. (a) Upon the occurrence of a Change of Control Repurchase Event, each Holder shall have the right to require the Company to purchase such Holder’s Notes in whole or in part (equal to $2,000 or an integral multiple of $1,000
in excess thereof) at a purchase price equal to 101% of the principal amount of such Notes, plus accrued and unpaid interest, if any, to the date of repurchase (subject to the rights of Holders of record on the relevant interest record date to
receive interest due on the relevant interest payment date), pursuant to and in accordance with the offer described in this Section 4.03, provided that after giving effect to the purchase, any Notes that remain outstanding shall have a
denomination of $2,000 or integral multiples of $1,000 in excess thereof. 

  
 14 

 (b) Within 30 days following any Change of Control Repurchase Event,
unless the Company has exercised its right to redeem all of the Notes pursuant to Section 3.03 hereof, the Company shall send by first class mail a notice (the “Change of Control Offer”) to each Holder, with a copy to the
Trustee, which notice shall state: 
 (i) that such Change of Control Repurchase Event has occurred and that such
Holder has the right to require the Company to repurchase such Holder’s Notes at a purchase price in cash equal to 101% of the principal amount of the Notes plus accrued and unpaid interest, if any, to the date of repurchase (subject to the
rights of Holders of records on the relevant interest record date to receive interest due on the relevant interest payment date) (the “Change of Control Payment”); 

(ii) the date of repurchase, which shall be a Business Day that is no earlier than 30 days nor later than
60 days from the date the Change of Control Offer is mailed, other than as may be required by law (the “Change of Control Payment Date”); 
 (iii) the procedures determined by the Company, consistent with the Indenture, that a Holder must follow in order to have its Notes repurchased; and 

(iv) if the notice is mailed prior to the date of consummation of the Change of Control, that the Change of Control Offer
is conditioned upon the Change of Control being consummated on or prior to the Change of Control Payment Date. 

(c) On the Change of Control Payment Date, the Company shall, to the extent lawful, accept for payment, all Notes or
portions thereof validly tendered and not withdrawn pursuant to the Change of Control Offer, and shall deposit with the Paying Agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes so tendered. The
Company shall also deliver or cause to be delivered to the Trustee the Notes so accepted together with an Officers’ Certificate stating the aggregate principal amount of Notes or portions of Notes being repurchased by the Company. The Paying
Agent shall promptly mail to each tendering Holder the Change of Control Payment for the Notes tendered by such Holder and accepted by the Company for purchase, and the Trustee, upon receipt of a Company Order, shall promptly authenticate and mail
(or cause to be transferred by book-entry) to each Holder a new Note equal in principal amount to any unpurchased portion of the Note surrendered, if any, provided that each such new Note shall be in a principal amount of $2,000 and integral
multiples of $1,000 in excess thereof. 
 (d) If the Change of Control Payment Date is on or after an interest
record date and on or before the related interest payment date, any accrued and unpaid interest, if any, shall be paid to the Person in whose name a Note is registered at the close of business on such interest record date, and no additional interest
will be payable to Holders who tender pursuant to the Change of Control Offer. 

  
 15 

 (e) Holders of Notes electing to have Notes purchased pursuant to a Change
of Control Offer will be required to surrender their Notes, with the form entitled “Option of Holder to Elect Purchase” on the reverse of the Note completed, to the Paying Agent at the address specified in the notice, or transfer their
Notes to the Paying Agent by book-entry transfer pursuant to the applicable procedures of the Paying Agent, prior to the close of business on the third Business Day prior to the Change of Control Payment Date. 

(f) The Company shall comply with the requirements of Rule 14e-1 under the Exchange Act in connection with the
repurchase of Notes pursuant to a Change of Control Offer hereunder. To the extent the provisions of any securities laws or regulations conflict with the provisions of the Indenture, the Company shall comply with the applicable securities laws and
regulations and shall not be deemed to have breached its obligations under the Indenture by virtue of such conflict. 
 (g) The Company shall not be required to make a Change of Control Offer if a third party makes such an offer in the manner and at the times required and otherwise in compliance with the requirements for
such an offer made by the Company, and such third party purchases all Notes validly tendered and not withdrawn under its offer. 

ARTICLE V 

DEFAULTS 
 Section 5.01 Defaults. In addition to the Events of Default described in the Base Indenture, the following shall constitute an “Event of Default” under this Supplemental Indenture:

 (a) (i) a failure to make any payment at maturity, including any applicable grace period, on any of the
Company’s or a Guarantor’s indebtedness in an amount in excess of $25 million and continuance of this failure to pay or (ii) a default on any of the Company’s or any Guarantor’s indebtedness, which default results in
the acceleration of indebtedness in an amount in excess of $25 million without such indebtedness having been discharged or the acceleration having been cured, waived, rescinded or annulled, for a period of, in the case of clause (i) or
(ii) above, 30 days or more after written notice thereof to the Company by the Trustee or to the Company and the Trustee by the Holders of at least 25% in aggregate principal amount of the outstanding Securities of such series;
provided, however, that if the failure, default or acceleration referred to in clause (i) or (ii) above shall cease or be cured, waived, rescinded or annulled, then the Event of Default shall be deemed cured. 

  
 16 

 ARTICLE VI 
 GUARANTEES 
 Section 6.01 Guarantees of the Notes.
Article 10 of the Base Indenture provides for a Guarantee by the Guarantors (as defined in the Base Indenture) of selected series of Securities. Article 10 of the Base Indenture is expressly made applicable to the Notes. 

Section 6.02 Effect of Guarantees; Guarantors to be Bound by Indenture. The Guarantors hereby irrevocably, fully and
unconditionally Guarantee, on a joint and several basis, to each Holder of the Notes and to the Trustee and its successors and assigns, irrespective of the validity and enforceability of the Indenture, the Notes or the obligations of the Company
under the Indenture or the Notes, the obligations of the Company with respect to payment and performance of the Notes and the other obligations of the Company under the Indenture with respect to the Notes on the terms, and subject to the conditions,
contained in Article 10 of the Base Indenture and agree to be bound by all other terms of the Indenture applicable to Guarantors thereunder. 
 Section 6.03 Execution and Delivery of the Guarantees. The execution and delivery of the Guarantees by the Guarantors shall be evidenced by the execution and delivery of this Supplemental
Indenture by each of the Guarantors as set forth in Section 10.08 of the Base Indenture. The terms of the Guarantees and obligations of the Guarantors are set forth in Article 10 of the Base Indenture. 

Section 6.04 Termination of Guarantees. Guarantees of any Guarantor pursuant to this Article VI shall be released only as
provided in Section 10.09 of the Base Indenture or at such time as such Guarantor shall cease to guarantee any of the indebtedness under the Bank Credit Agreement. 
 ARTICLE VII 
 MISCELLANEOUS 

Section 7.01 Trust Indenture Act Controls. This Supplemental Indenture shall incorporate and be governed by the provisions
of the Trust Indenture Act that are required to be part of and to govern indentures qualified under the Trust Indenture Act. 

Section 7.02 Governing Law. The laws of the State of New York shall govern this Supplemental Indenture and the Securities,
without regard to conflicts of laws principles thereof. 
 Section 7.03 Successors. All agreements of the Company
and the Guarantors in this Supplemental Indenture and the Notes will bind their respective successors. All agreements of the Trustee in this Supplemental Indenture will bind its successors. 

Section 7.04 Severability. In case any provision in this Supplemental Indenture or in the Notes will be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining provisions will not in any way be affected or impaired thereby. 

  
 17 

 Section 7.05 Counterpart Originals. The parties may sign any number of copies
of this Supplemental Indenture. Each signed copy will be an original, but all of them together represent the same agreement. The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall
constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes. Signatures of the parties hereto transmitted by facsimile or PDF
shall be deemed to be their original signatures for all purposes. 
 Section 7.06 Table of Contents, Headings,
Etc. The Table of Contents and Headings of the Articles and Sections of this Supplemental Indenture have been inserted for convenience of reference only, are not to be considered a part of this Supplemental Indenture and will in no way
modify or restrict any of the terms or provisions hereof. 
 Section 7.07 Validity or Sufficiency of Supplemental
Indenture. The Trustee is not responsible for the validity or sufficiency of this Supplemental Indenture, or for the recitals contained herein. 
 Section 7.08 Waiver of Jury Trial. EACH OF THE COMPANY, THE GUARANTORS AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO
TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE, THE NOTES OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 [Signatures on following page] 

  
 18 

 SIGNATURES 
 IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed, all as of the date first written above. 

 

			
	VERISK ANALYTICS, INC., as the Company

 
			
	
	 INSURANCE SERVICES OFFICE, INC., as
                         Guarantor

 
			
	
	ISO STAFF SERVICES, INC., as Guarantor

 
			
	
	 XACTWARE SOLUTIONS, INC., as
                         Guarantor

 
			
	
	ISO SERVICES, INC., as Guarantor

 
			
	
	ISO CLAIMS SERVICES, INC., as Guarantor

 
			
	
	 AIR WORLDWIDE CORPORATION, as
                     Guarantor

 
			
	
	INTERTHINX, INC., as Guarantor

 
			
	
	VERISK HEALTH, INC., as Guarantor

 
			
	
	 VERISK HEALTH SOLUTIONS, INC., as
                     Guarantor

 
					
		
	By:	 	/s/ Kenneth E. Thompson
		
		 	Kenneth E. Thompson
			
		 	Secretary of 	 	 ISO Staff Services, Inc.,

Xactware Solutions, Inc.
 ISO Claims Services,
Inc.
 Air Worldwide Corporation Interthinx, Inc.

		
		 	 Executive Vice President, General Counsel and Corporate Secretary of Verisk
Analytics, Inc.
 Executive Vice President, General Counsel and Corporate Secretary of Insurance
Services Office, Inc.
 General Counsel and Corporate Secretary of ISO Services, Inc.

Vice President, General Counsel and Secretary of Verisk Health, Inc.

Senior Vice President, General Counsel and Secretary of Verisk Health Solutions, Inc.

 
			
	WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Trustee
		
	By:	 	/s/ Raymond Delli Colli
		 	Name:  Raymond Delli Colli
		 	Title:  Vice President

 EXHIBIT A 
 FORM OF FACE OF SECURITY 
 [GLOBAL SECURITY LEGEND] 

THIS SECURITY IS A REGISTERED GLOBAL SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME
OF THE DEPOSITARY OR A NOMINEE OF THE DEPOSITARY, WHICH MAY BE TREATED BY THE COMPANY, THE TRUSTEE AND ANY AGENT THEREOF AS OWNER AND HOLDER OF THIS SECURITY FOR ALL PURPOSES. 
 UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (“DTC”) TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND
ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT HEREON IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN
AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL SINCE THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 

TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, BY THE DEPOSITARY TO A NOMINEE OF THE
DEPOSITARY, OR BY A NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY, OR BY THE DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY. 

  
 A-1

 CUSIP No. 

ISIN 
 Verisk Analytics, Inc. 
 4.875% SENIOR NOTES DUE 2019 

 

					
	 No. ___
	  		  	 $_____________
 As revised
by the Schedule of Increases or Decreases attached hereto

 Interest. Verisk Analytics, Inc., a Delaware corporation, (herein called the “Company”),
for value received, hereby promises to pay to              or registered assigns, the principal sum of
                     United States dollars (U.S.$            ), as revised by the
Schedule of Increases or Decreases attached hereto, on January 15, 2019 and to pay interest thereon from              or from the most recent interest payment date to which interest
has been paid or duly provided for, semi-annually in arrears on January 15 and July 15 in each year, commencing                     , at
the rate of 4.875% per annum, until the principal hereof is paid or made available for payment. Interest shall be calculated on the basis of a 360-day year consisting of twelve 30-day months. 

Method of Payment. The interest so payable, and punctually paid or duly provided for, on any interest payment date will, as
provided in the Indenture (as defined on the reverse hereof), be paid to the Person in whose name this Security (or one or more predecessor Securities) is registered at the close of business on the relevant record date for such interest, which shall
be January 1 or July 1, as the case may be, next preceding such interest payment date. 
 Reference is hereby made to
the further provisions of this Security set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if set forth at this place. 
 Authentication. Unless the certificate of authentication hereon has been executed by the Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose. 

  
 A-2

 IN WITNESS WHEREOF, the Company has caused this instrument to be duly executed. 

 

			
	VERISK ANALYTICS, INC.
		
	 By:
	 	 
		 	Name:
		 	Title:
		
	 By:
	 	 
		 	Name:
		 	Title:

  
 A-3

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated therein referred to in the within-mentioned Indenture. 

 

									
	Date of authentication:	 		 	 WELLS FARGO BANK, NATIONAL ASSOCIATION
 as Trustee

					
		 		 		 	By:	 	 
		 		 		 		 	Authorized Signatory

  
 A-4

 FORM OF REVERSE OF SECURITY 

Indenture. This Security is one of a duly authorized issue of securities of the Company (herein called the
“Securities”), issued and to be issued in one or more series under an Indenture, dated as of April 6, 2011, as supplemented by a Second Supplemental Indenture dated December 8, 2011 (as so supplemented, herein called the
“Indenture”), between the Company, the guarantors thereto (the “Guarantors”) and Wells Fargo Bank, National Association, as Trustee (herein called the “Trustee”, which term includes any successor trustee under the
Indenture), to which Indenture reference is hereby made for a statement of the respective rights, limitations of rights, duties and immunities thereunder of the Company, the Guarantors, the Trustee and the holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This Security is one of the series designated on the face hereof, initially limited in aggregate principal amount to $250,000,000. 

Guarantees. The Securities are guaranteed by the Guarantors as set forth in the Indenture, which guarantees may be released under
certain circumstances as set forth in the Indenture. 
 Optional Redemption. The Securities of this series are subject to
redemption at the Company’s option, at any time and from time to time, in whole or in part, upon not less than 30 nor more than 60 days’ notice, at a redemption price equal to the greater of: (i) 100% of the principal amount of the
Securities to be redeemed and (ii) the sum of the present values of the Remaining Scheduled Payments (as defined below) of the Securities to be redeemed, discounted to the date of redemption on a semi-annual basis (assuming a 360-day year
consisting of twelve 30-day months) at the Treasury Rate (as defined below) plus 50 basis points, provided that the principal amount of a Security remaining outstanding after redemption in part will be $2,000 or an integral multiple of $1,000
in excess thereof; in each case, plus accrued and unpaid interest thereon to, but excluding, the date of redemption. If the date of redemption is on or after an interest record date and on or before the related interest payment date, the accrued and
unpaid interest, if any, will be paid to the Person in whose name the Security is registered at the close of business on such interest record date, and no additional interest is payable to Holders whose Securities will be subject to redemption by
the Company. Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest shall cease to accrue on the Securities or the portions thereof called for redemption. 

For purposes of determining the optional redemption price, the following definitions are applicable: 

“Business Day” means any day that is not a Saturday, a Sunday or a day on which banking institutions are not required to
be open in the State of New York. 

  
 A-5

 “Comparable Treasury Issue” means the United States Treasury security
selected by an Independent Investment Banker as having a maturity comparable to the remaining term of the Securities to be redeemed that would be used, at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term of the Securities. 
 “Comparable
Treasury Price” means, with respect to any date of redemption, the Reference Treasury Dealer Quotations for that date of redemption. 
 “Independent Investment Banker” means the Reference Treasury Dealer appointed by the Company. 
 “Reference Treasury Dealer” means each of J.P. Morgan Securities LLC and Merrill Lynch, Pierce, Fenner & Smith Incorporated and their respective successors and two other
nationally recognized investment banking firms that are primary U.S. Government securities dealers specified from time to time by the Company so long as the entity is a primary U.S. Government securities dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption,
the average, as determined by the Company, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company by such Reference Treasury Dealer at 5:00
p.m., New York City time, on the third Business Day preceding that date of redemption, after excluding the highest and lowest of such quotations, unless the Company obtains fewer than four such quotations, in which case the average of all of such
quotations. 
 “Remaining Scheduled Payments” means, with respect to each Security to be redeemed, the
remaining scheduled payments of the principal thereof and interest thereon that would be due after the related date of redemption therefor; provided, however, that, if that date of redemption is not an interest payment date with
respect to such Security, the amount of the next succeeding scheduled interest payment thereon will be reduced by the amount of interest accrued thereon to that date of redemption. 

“Treasury Rate” means, with respect to any date of redemption, the rate per annum equal to the semi-annual equivalent
yield to maturity, computed as of the third Business Day immediately preceding that date of redemption, of the Comparable Treasury Issue, assuming a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to
the Comparable Treasury Price for that date of redemption. 
 Notice of any redemption will be mailed by first-class mail at
least 30 days but not more than 60 days before the date of redemption to each holder of Securities to be redeemed. If less than all the Securities are to be redeemed, the Securities to be redeemed shall be selected by the Trustee not more
than 60 days before the date of redemption by such method as the Trustee deems fair and appropriate and in accordance with the procedures of the Depositary. 

  
 A-6

 Except as set forth above, the Securities will not be redeemable by the Company prior to
maturity and will not be entitled to the benefit of any sinking fund. 
 Defaults and Remedies. If an Event of Default
with respect to Securities of this series shall occur and be continuing, the principal of the Securities of this series may be declared due and payable in the manner and with the effect provided in the Indenture. 

Amendment, Modification and Waiver. The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Company and the rights of the holders of the Securities of each series to be affected under the Indenture at any time by the Company and the Trustee with the consent of the holders of a majority
in aggregate principal amount of the Securities at the time outstanding of each series to be affected. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Securities of each affected
series at the time outstanding, on behalf of the holders of all Securities of such affected series, to waive compliance by the Company with certain provisions of the Indenture and certain past defaults under the Indenture and their consequences. Any
such consent or waiver by the holder of this Security shall be conclusive and binding upon such holder and upon all future holders of this Security and of any Security issued upon the registration of transfer hereof or in exchange herefor or in lieu
hereof, whether or not notation of such consent or waiver is made upon this Security. 
 Restrictive Covenants. The
Indenture contains customary limitations that restrict the Company’s, and in certain circumstances the Guarantors’, ability to merge, consolidate or sell substantially all of its or their assets, place liens on its or their property or
assets and engage in sale/leaseback transactions. Upon a Change of Control Repurchase Event (as defined in the Indenture), a holder of Securities will have the right, subject to certain terms and conditions specified in the Indenture, to cause the
Company to repurchase all or any part of the Securities of such holder at a purchase price equal to 101% of the principal amount of the Securities to be repurchased plus accrued and unpaid interest, if any, to the date of repurchase. 

Denominations, Transfer and Exchange. The Securities of this series are issuable only in registered form without coupons in
denominations of $2,000 and in integral multiples of $1,000 in excess thereof. As provided in the Indenture and subject to certain limitations therein set forth, Securities of this series are exchangeable for a like aggregate principal amount of
Securities of like tenor of a different authorized denomination, as requested by the holder surrendering the same. 

  
 A-7

 As provided in the Indenture and subject to certain limitations therein set forth, the
transfer of this Security is registerable in the Security Register, upon surrender of this Security for registration of transfer at the Registrar accompanied by a written request for transfer in form satisfactory to the Company and the Registrar
duly executed by, the holder hereof or his attorney duly authorized in writing, and thereupon one or more new Securities of this series and of like tenor, of authorized denominations and for the same aggregate principal amount, will be issued to the
designated transferee or transferees. 
 No service charge shall be made for any such registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in connection therewith. 
 Persons Deemed Owners. Prior to due presentment of this Security for registration of transfer, the Company, the Trustee and any agent of the Company or the Trustee may treat the Person in whose
name this Security is registered as the owner hereof for all purposes, whether or not this Security be overdue, and neither the Company, the Trustee nor any such agent shall be affected by notice to the contrary. 

Miscellaneous. The Indenture and this Security shall be governed by and construed in accordance with the laws of the State of New
York, without regard to the conflicts of law rules thereof. 
 All terms used in this Security and not defined herein shall have
the meanings assigned to them in the Indenture. 

  
 A-8

 SCHEDULE OF INCREASES OR DECREASES 

The following increases or decreases in this Security have been made: 

 

									
	 Date of Exchange
	  	Amount of increase in
Principal Amount of
this Security	  	Amount of decrease
in Principal Amount
of this Security	  	Principal Amount of
this Security
following each
decrease or increase	  	Signature of
authorized signatory
of Trustee

  
 A-9

 FORM OPTION OF HOLDER TO ELECT PURCHASE 

If you want to elect to have this Security purchased by the Company pursuant to Section 4.03 (Change of Control) of the Supplemental
Indenture, check the box: 
  ̈ 

If you want to elect to have only part of this Security purchased by the Company pursuant to Section 4.03 of the Supplemental
Indenture, state the amount: 
 $ 

Date:                    
    Your Signature:
                                     

(Sign exactly as your name appears on the other side of the Security) 
 Signature
Guarantee:                                       
  
 Signature must be guaranteed by a participant in a recognized signature guaranty medallion program or other signature guarantor
acceptable to the Trustee. 

  
 A-10EX-10.3

 EXHIBIT 10.3 

PURCHASE AND SALE AGREEMENT 
 THIS PURCHASE AND SALE AGREEMENT (this “Agreement”) is dated the 30 day of September 2011, by and between Flatirons Development, LLC, a Delaware limited liability company
(“Seller”), and Panhandle Oil and Gas Inc., an Oklahoma corporation (“Buyer”). Seller and Buyer are collectively referred to herein as “parties” and each is referred to as a “party”. 

RECITALS: 
 A.
Seller desires to sell, assign and convey to Buyer and Buyer desires to purchase and accept certain oil and gas properties, as hereinafter described, located in Cleburne, Conway and Van Buren Counties, Arkansas; and 

B. The parties have reached agreement regarding such sale and purchase. 

For good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows:

 ARTICLE 1. DEFINITIONS 
 Definitions: In this Agreement, capitalized terms have the meanings provided in this Article, unless provided otherwise in other Articles. (All defined terms include both the singular and the
plural. All references to Articles refer to Articles in this Agreement, and all Exhibits refer to Exhibits attached to and made a part of this Agreement.) 
 “Affiliate” means and includes any entity that, directly or indirectly, through one or more intermediaries, controls or is controlled by or is under common control with the entity
specified. 
 “Alleged Environmental Condition” means environmental condition(s) asserted by Buyer in
accordance with Section 5.2 that, as of the Closing Date (as hereinafter defined), are not in compliance with the then existing Environmental Laws (as hereinafter defined). 

“Alleged Title Defect” means a Title Defect (as hereinafter defined) which is asserted by Buyer in accordance with
Section 5.2. 
 “Allocated Value” shall have the meaning given that term in Section 3.3 

“Assignment and Bill of Sale” means a document in the form of Exhibit E. 

“Business Day” means a Day (as hereinafter defined) excluding Saturdays, Sundays and U.S. legal holidays. 

“Casualty Loss” means any loss, damage or reduction in value resulting from mechanical failure or defects, catastrophic
occurrences, acts of God and any other losses which are not the result of (i) normal wear and tear, (ii) natural reservoir changes or (iii) changes in commodity pricing, operating expenses or the financial condition of a party.

  
 (77)

 “Claim” or “Claims” means any and all claims, demands, suits,
causes of action, losses, damages, liabilities, fines, penalties and costs (including attorneys’ fees and costs of litigation) which are brought by or owed either to a Third Party (as hereinafter defined) or a party hereto. 

“Close” or “Closing” means the consummation of the transfer of title to the Properties (as hereinafter
defined) to Buyer, including execution and delivery of all documents provided herein. 
 “Closing Date” means
on or before October 25, 2011, or such other earlier or later date as may be mutually agreed upon by the parties, or such later date as may be necessary for resolution of issues pursuant to the terms hereof. 

“Contracts” means all agreements to which Seller is a party relating to the Leases or the Wells including, without
limitation, farmout agreements, purchase and sale agreements, letter agreements, participation agreements, joint operating agreements, oil or gas product purchase and sale contracts, gas processing or transportation agreements and leases, including
without limitation those described on Exhibit C. 
 “Day” means a calendar Day consisting of twenty-four
(24) hours from midnight to midnight. 
 “Defensible Title” means with respect to a Property, such title,
that (i) entitles Seller, throughout the duration of the estate, to receive not less than the Net Revenue Interest for such Property set forth in Exhibit B, and (ii) obligates Seller, through the duration of the estate, to pay costs
and expenses relating to such Property in an amount not greater than the Working Interest for such Property set forth in Exhibit B without a corresponding increase in the Net Revenue Interest, and (iii) is free and clear of encumbrances
other than the Permitted Encumbrances and other than those encumbrances to be satisfied from Seller’s proceeds at Closing,. 
 “Effective Time” means September 1, 2011, at 7:00 a.m., local time where the Properties are located. 
 “Environmental Claims” means all Claims for pollution or environmental damages of any kind, including without limitation, those relating to: (a) remediation and/or clean-up thereof,
(b) damage to and/or loss of any property or resource, and/or (c) injury or death of any person(s) whomsoever; including without limitation, Claims relating to breach and/or violation of Environmental Laws, common law causes of action such
as negligence, gross negligence, strict liability, nuisance or trespass, or fault imposed by statute, rule, regulation or otherwise, Claims relating to asbestos, NORM, or other potentially hazardous substances, all costs associated with remediation
and clean up, and fines and penalties associated with any of the foregoing. 
 “Environmental Laws” means all
laws, statutes, ordinances, permits, orders, judgments, rules or regulations which are promulgated, issued or enacted by a governmental entity or tribal authority having appropriate jurisdiction that relate to (a) the prevention of pollution or

  
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environmental damage, (b) the remediation of pollution or environmental damage, or (c) the protection of the environment generally; including without limitation, the Clean Air Act, as
amended, the Clean Water Act, as amended, the Comprehensive Environmental Response. Compensation and Liability Act of 1980, as amended, the Federal Water Pollution Control Act, as amended, the Resource Conservation and Recovery Act of 1976, as
amended, the Safe Drinking Water Act, as amended, the Toxic Substance and Control Act, as amended, the Superfund Amendments and Reauthorization Act of 1986, as amended, the Hazardous and the Solid Waste Amendments Act of 1984, as amended, and the
Oil Pollution Act of 1990, as amended. 
 “Governmental Authority” shall mean any federal, state, local or
foreign government or any court of competent jurisdiction, regulatory or administrative agency, commission or other governmental authority that exercises any jurisdiction over any of the Properties. 

“Lands” means the lands covered by the Leases and all surface rights incident or appurtenant to the Leases or the Wells,
and all of Seller’s right, title and interest in and to all surface fee interests, easements, rights-of-way, permits, licenses, leaseholds, fee interests, servitudes, rights of access and use, surface use agreements or other similar interests
affecting the Leases or the Wells, or appurtenant thereto or used in connection therewith. 
 “Laws” means
laws, statutes, ordinances, permits, decrees, orders, judgments, rules or regulations (including without limitation Environmental Laws) which are promulgated, issued or enacted by a governmental entity or tribal authority having appropriate
jurisdiction and which are effective as of the date of this Agreement. 
 “Leases” means oil and gas leases,
and the leasehold interests derived therefrom, described on Exhibit A. 
 “Material Contracts” means the
following Contracts: 
  

	 	(a)	any natural gas sales or purchase agreement that cannot be terminated on thirty (30) Days or less notice without penalty; 

 

	 	(b)	joint operating agreements and participation agreements pertaining to the Wells; 

 

	 	(c)	any other Contract, that involves annual receipts or payments by Seller of more than $50,000 during the term of such agreement; 

 

	 	(d)	any Contract that restricts Seller (or one of its Affiliates) from freely engaging in any business or competing anywhere; or 

 

	 	(e)	any Contract that imposes a lien, mortgage or other encumbrance on any Property, other than liens imposed under joint operating agreements. 

“NORM” means naturally occurring radioactive materials. 

  
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 “Permitted Encumbrances” means: 

 

	 	(a)	All rights to consent by, required notices to. filings with, or other actions by governmental entities or tribal authorities in connection with the sale or conveyance
of the Properties, if the same are ministerial in nature and customarily obtained subsequent to the transfer of title; 

  

	 	(b)	Rights reserved to or vested in any governmental entity or tribal authority having appropriate jurisdiction to control or regulate the Properties in any manner
whatsoever, and all Laws of any such governmental entity or tribal authority; 

  

	 	(c)	Easements, rights-of-way, servitudes, surface leases, sub-surface leases, grazing rights, logging rights, canals, ditches, reservoirs, pipelines, utility lines,
telephone lines, power lines, railways, streets, roads, alleys, highways and structures on. over and through the Properties, to the extent that the foregoing leases, rights, interests or structures do not, individually or in the aggregate,
materially interfere with the operation of the Properties; 

  

	 	(d)	The terms and conditions of the Contracts; 

  

	 	(e)	Liens for taxes or assessments not yet due or not yet delinquent; 

  

	 	(f)	Liens relating to obligations incurred in the ordinary course of business and not yet due or not yet delinquent: 

 

	 	(g)	[Intentionally omitted.] 

  

	 	(h)	[Intentionally omitted.] 

  

	 	(i)	The failure to have obtained separate rights-of-way or easements for pipelines that were installed under the rights granted in a Lease; 

 

	 	(j)	The terms and conditions of the Leases; 

  

	 	(k)	Lessors’ royalties and overriding royalties burdening the Wells , but only to the extent the same do not operate to reduce the interest of Seller to less than the
Net Revenue Interest set forth in Exhibit B hereto; 

  

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

 

	 	(m)	Mortgages, deeds of trust, security agreements and financing statements burdening the lessor’s interest covered by any of the Leases; 

  
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	 	(n)	The lack of any formal probate in the chain of title to a lessor’s interest covered by any of the Leases, providing there is other evidence of the chain of title
normally relied upon in the industry; 

  

	 	(o)	The lack of a recorded release of any prior expired oil and gas lease covering any portion of the Lands; 

 

	 	(p)	[Intentionally omitted] 

  

	 	(q)	Any defects other than those set forth in (a) through (p) above which do not materially detract from the ability to own and operate the Properties in the
manner owned and operated by Seller. 

 “Properties” means, and only means, all of Seller’s
right, title and interest in the properties (real, personal or mixed) and rights (contractual or otherwise) as shown on the following exhibits which are attached hereto unless reserved or excluded herein: 

 

					
		 	Exhibit A – Lands and Leases	 	
		 	Exhibit B – Wells	 	
		 	Exhibit C – Contracts	 	

 “Properties” also includes Seller’s right, title and interest, if any, in all personal property,
equipment, equipment, fixtures and improvements, as of the date hereof or as of the Effective Date, located on, used or held, on the Leases, for use on the Leases or the Wells for the production, gathering, treatment, processing, sale or disposal of
hydrocarbons or water produced therefrom or attributable thereto. 
 “Property” means a single property or
group of properties valued together to determine an allocated value pursuant to Section 3.3. 
 “Records”
means all documents, including, but not limited to, books, records, maps, files, papers, data and other property, whether in hard copy or electronic form, relating to the Properties or otherwise to the transaction contemplated by this Agreement.

 “Third Party” means any person or entity, governmental or otherwise, other than Seller and Buyer, and their
respective Affiliates. 
 “Title Defect” means any lien, encumbrance, encroachment or defect associated with
Seller’s title to the Properties (excluding Permitted Encumbrances) that would cause Seller not to have Defensible Title and which would require more than $5,000 to cure or remedy. 

“Wells” means all wells, including, without limitation, oil and gas wells, injection wells, pressure maintenance or salt
water disposal wells, whether producing or non-producing, that are located on the Land and in which Seller has an interest, the oil and gas wells described on Exhibit B and related equipment. 

  
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 ARTICLE 2. TRANSFER OF THE PROPERTIES 

2.1 Sale and Purchase. On the Closing Date, effective as of the Effective Time and upon the terms and conditions herein set forth,
Seller agrees to sell and assign the Properties to Buyer and Buyer agrees to buy and accept the Properties. 
 ARTICLE 3.
PURCHASE PRICE 
 3.1 Purchase Price. The total purchase price, subject to adjustments as set forth herein, paid to
Seller by Buyer for the Properties shall be Seventeen Million Five Hundred Thousand and No/100 ($17,500,000.00) (“Purchase Price”), payable at Closing in immediately available funds. 

3.2 Deposit. 
  

	 	(a)	Concurrently with the execution and delivery of this Agreement, Buyer has deposited with a mutually acceptable escrow agent, subject to the escrow agreement in the form
attached hereto as Exhibit J (“Escrow Agent”) by wire transfer in same day funds a sum equal to five percent (5%) of the Purchase Price (the “Deposit”). Escrow Agent shall cause the Deposit to be deposited in such fashion as
to be fully insured by the Federal Deposit Insurance Corporation. The Deposit and any interest earned thereon shall be applied to the Purchase Price at Closing. 

 

	 	(b)	The rights and obligations of the parties with respect to the Deposit are set forth in Article 14. 

3.3 Allocated Values. Seller and Buyer agree that the unadjusted Purchase Price is allocated among the Properties in the amounts
set forth in Exhibit D. The “Allocated Value” for any individual Property or group of Properties valued together equals the portion of the unadjusted Purchase Price allocated to such Property on Exhibit D and such Allocated Value shall be
used in calculating adjustments to the Purchase Price as provided herein. Seller and Buyer agree (a) that the Allocated Values, as adjusted, shall be used by Seller and Buyer as the amount for reporting Property values and other items for the
purposes of all federal, state and local tax returns, including Internal Revenue Service Form 8594, and (b) that neither they nor their Affiliates will take positions inconsistent with such Allocated Values in other documents or notices
relating to the transactions contemplated by this Agreement. 
 ARTICLE 4. REVIEWS AND INSPECTIONS 

4.1 Review of Records. Seller shall make available to Buyer, at reasonable hours and during Business Days, all Records in
Seller’s possession or under its control relating to the Properties. Buyer shall be entitled to review said Records. Seller shall provide copies of any and all such Records that Buyer reasonably requests. 

  
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 4.2 Inspection. Seller shall request the applicable operator of the Properties to
provide Buyer access to the Properties, for the purpose of inspecting the condition of the same. Buyer shall have the right to conduct tests related to the condition of the Properties so long as the tests do not unreasonably interfere with the
operation of the Properties. Seller has provided Buyer with copies of all studies, reports or other Records related to the condition of the Properties that are in Seller’s possession or under Seller’s control. Buyer shall provide Seller
with copies of all reports acquired by or prepared by or for Buyer with respect to the condition of the Properties. Buyer’s access to the Properties shall be at Buyer’s sole risk, cost and expense, and Buyer shall release Seller and the
operator of the Properties from and shall fully protect, indemnify and defend Seller and the operator of the Properties, and each of their respective officers, agents, employees and Affiliates and hold them harmless from and against any and all
Claims relating to, arising out of, or connected, directly or indirectly, with Buyer’s exercise of its rights under this Section 4.2, including without limitation, Claims relating to (a) injury or death of any person or persons
whomsoever, (b) damage to or loss of any property or resource, (c) pollution, environmental damage or violation of Environmental Laws, (d) common law causes of action such as negligence, gross negligence, strict liability, nuisance or
trespass, or (e) fault imposed by statute, rule, regulation or otherwise. The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of Seller and/or its respective officers,
agents, employees and Affiliates. Buyer additionally agrees to comply with the rules, procedures and instructions issued by Seller or Third Party operator of the Properties while upon the Properties. 

4.3 Records and Employees. Seller shall permit Buyer and its representatives after the date of this Agreement and before the
Closing Date to have reasonable access during normal business hours, upon reasonable advance notice, Records, and employees of Seller who are knowledgeable with respect to the same. Any review by Buyer and its representatives pursuant to such access
shall be for the reasonable and legitimate due diligence requirements of Buyer and shall be conducted in such a manner as not to interfere unreasonably with the business or operations of Seller. All activities of Buyer under this Section will be
conducted in accordance with all applicable laws. 
 ARTICLE 5. PROCEDURE FOR DEFECTS 

5.1 Scope. As used in this Article 5, “Defects” includes Alleged Title Defects and Alleged Environmental Conditions.

 5.2 Assertion of Defects and Remedies. From time to time, as soon as reasonably practical after Buyer’s discovery
thereof, but in no event later than 4:00 p.m., Mountain Daylight Time on October 14, 2011 (hereinafter “Defect Notification Date”), Buyer shall notify Seller in writing of all Defects, each such notice being a “Defect
Notice”. Each of Buyer’s Defect Notices shall include a complete description of each individual Alleged Title Defect or Alleged Environmental Condition which Buyer claims as a Defect (including any and all supporting documentation) and the
costs which Buyer in good faith attributes to curing or remediating the same (which costs in the case of Title Defects shall be based on the proportionate reduction to the Allocated Value (based on changes in Working Interest or Net Revenue
Interest), but in any event shall not exceed the Allocated Values of the Properties as to which Title Defects are 

  
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asserted). Seller shall provide a written response (“Seller’s Response”) to Buyer within three (3) Business Days after the Defect Notification Date stating, with respect to
each Defect asserted in Buyer’s Defect Notices, whether or not Seller agrees (a) that the Defect constitutes either an Alleged Title Defect or an Alleged Environmental Condition, (b) that Buyer’s estimate of the costs to cure or
remediate is accurate. Should Seller fail to provide Seller’s Response as to any Defect, within the time set forth above, Seller shall be deemed to have accepted Buyer’s assertion of that Defect, and the costs thereof. Seller may undertake
to cure some, all or none of the Defect(s) contained in Buyer’s Defect Notices at Seller’s sole cost and expense. With regard to the Defects(s) contained in Buyer’s Defect Notices that Seller does not undertake to cure or that Seller
disagreed with in Seller’s Response, Buyer and Seller shall meet within two (2) Business Days following the receipt of Seller’s Response in an attempt to mutually agree on an acceptable resolution of the Defect(s). In the event the
parties have not agreed on the resolution of the Defects by Closing, then the following procedures shall apply based upon the aggregate costs of the Defect(s) asserted by Buyer in its Defect Notices: 

 

	 	(a)	If the total costs asserted by Buyer to cure and remediate Defects equal or exceed 15% of the unadjusted Purchase Price (without reference to the 2% deductible set
forth in Section 8.11) then Seller and Buyer each shall have the right to: 

  

	 	(i)	Terminate this Agreement; or, 

  

	 	(ii)	Proceed to Closing and in doing so, a portion of the Purchase Price equal to the difference between (x) the total costs asserted by Buyer and (y) the total
costs asserted by Buyer as to which agreement or resolution has been reached shall be placed in escrow, with the Escrow Agent, pending resolution of the Defects in arbitration or by agreement. The total costs asserted by Buyer as to which agreement
or resolution has been reached and the amounts paid into escrow shall, subject to Section 8.11, be deducted from the Purchase Price paid to Seller at Closing. 

 

	 	(b)	If such costs asserted by Buyer are less than 15% of the unadjusted Purchase Price, the parties shall proceed to Closing at the full Purchase Price, less any portions
of the Dcfect(s) to which the parties have agreed upon the resolution, and either party shall have the option to cause the resolution of the remaining Defect(s) to be arbitrated, and Seller shall pay Buyer the cost to remediate or correct such
Alleged Defects as determined by arbitration. 

 Arbitration of the foregoing issues shall be in accordance with
Section 16.16. 
 Notwithstanding the procedures and remedies for asserting Alleged Environmental Conditions set forth in
this Section 5.2, the environmental and safety representations and warranties set forth in Section 10.16 and Seller’s environmental indemnity in Section 8.3 shall remain in full force and effect in accordance with their terms.

  
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 5.3 Notwithstanding anything herein to the contrary, Buyer shall not be entitled to raise
a Defect unless the cost of the individual defect exceeds $5,000 and Seller’s obligation to compensate Buyer for Defects under this Agreement is subject to Section 8.11. 

5.4 [Intentionally omitted] 
 5.5 Title Defect Waiver. Except for claims, damages, liabilities, costs or expenses Buyer asserts under Seller’s special warranty of title contained in Section 9.1, all Title
Defects not raised or referred to arbitration by Buyer within the time periods provided in Section 5.2 above shall be deemed waived by Buyer for all purposes, and Buyer shall have no right to seek an adjustment to the Purchase Price, make a
Claim against Seller, monetary, legal or otherwise, or seek indemnification from Seller associated with Title Defects. 

ARTICLE 6. ACCOUNTING 
 6.1 Revenues. Expenses and Capital Expenditures. All revenues attributable to the operation of the Properties prior to the Effective Time shall be owned by and for the account of Seller. Seller
shall be entitled to all operating revenues and related accounts receivable attributable to the Properties and shall be responsible for all capital expenditures, operating expenses and related accounts payable attributable to the Properties, in each
ease to the extent they relate to the time prior to the Effective Time. Buyer shall be entitled to all operating revenues and related accounts receivable attributable to the Properties and responsible for the payment of all capital
expenditures, operating expenses and related accounts payable attributable to the Properties, in each case to the extent they relate to time on and after the Effective Time. The actual amounts or values associated with the above shall be
accounted for in the Final Accounting Settlement. 
 6.2 Taxes. All taxes and assessments, including without limitation,
excise taxes, ad valorem taxes and any other federal, state, local or tribal taxes or assessments attributable to the ownership or operation of the Properties prior to the Effective Time shall remain Seller’s responsibility, and all deductions,
credits and refunds pertaining to the aforementioned taxes and assessments.” no matter when received, shall belong to Seller. All taxes and assessments, including without limitation, excise taxes, ad valorem taxes and any other federal, state,
local or tribal taxes and assessments attributable to the ownership or operation of the Properties on and alter the Effective Time (excluding income taxes) shall be Buyer’s responsibility, and all deductions, credits and refunds pertaining to
the aforementioned taxes and assessments, no matter when received, shall belong to Buyer. The Purchase Price will be adjusted at Closing as required to prorate taxes for the current year. If actual tax rates for the year 2011 are not known, the last
rates in effect shall be used as an estimate, such to be corrected upon receipt of the assessment. The actual amounts or values associated with the above, if any, shall be accounted for in the Final Accounting Settlement (or in the accounting
settlement set forth in Section 6.6). Notwithstanding the foregoing, Buyer shall be solely responsible for all transfer, sales, use or similar taxes resulting from or associated with the transaction contemplated under this Agreement.

  
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 6.3 Obligations and Credits. All prepaid insurance premiums, utility charges, taxes,
rentals and any other prepaids applicable to periods of time after the Effective Time and benefiting Buyer, if any, and attributable to the Properties shall be reimbursed to Seller by Buyer; and accrued payables applicable to periods of time prior
to the Effective Time, if any, and attributable to the Properties shall be the responsibility of Seller. The actual amounts or values associated with the above shall be accounted for in the Final Accounting Settlement. 

6.4 Miscellaneous Accounting. In addition to the items set forth in Sections 6.1 through 6.3, any other amounts due between Buyer
and Seller related to the ownership or operation of the Properties shall be accounted for in the Final Accounting Settlement. 

6.5 Final Accounting Settlement. As soon as reasonably practicable, but in no event later than ninety (90) Days after
Closing, Seller shall deliver to Buyer a post-closing statement setting forth a detailed final calculation of all post-closing adjustments (“Final Accounting Settlement”). The Final Accounting Settlement shall not include any matters
related to Alleged Environmental Conditions or Alleged Title Defects. As soon as reasonably practicable, but in no event later than thirty (30) Days after Buyer receives the post-closing statement, Buyer shall deliver to Seller a written report
containing any changes Buyer proposes to be made to such statement. If Buyer fails to deliver a report to Seller containing changes Buyer proposes to be made to the post-closing statement, the post-closing statement delivered by Seller shall be
deemed to be true and correct and binding on and non-appealable by the parties. As soon as reasonably practicable, but in no event later than fifteen (15) Days after Seller receives Buyer’s proposed changes to the post-closing statement,
the parties shall meet and undertake to agree on the final post-closing adjustments. If the parties fail to agree on the final post-closing adjustments within such fifteen (15) Day period, the disputed items shall be resolved by submitting the
same to a firm of independent nationally recognized accountants mutually acceptable to the parties (the “Accounting Referee”). The Accounting Referee shall resolve the dispute(s) regarding the Final Accounting Settlement within thirty
(30) Days after having the relevant materials submitted for review. The decision of the Accounting Referee shall be binding and non-appealable by the parties. The fees and expenses associated with the Accounting Referee shall be borne equally
by Buyer and Seller. The date upon which all amounts associated with the Final Accounting Settlement are agreed to by the parties, whether by decision of the Accounting Referee or otherwise, shall be herein called the “Final Settlement
Date.” Any amounts owed by either party to the other as a result of such final post-closing adjustments shall be paid within five (5) Business Days after the Final Settlement Date. 

6.6 Post-Final Accounting Settlement. Any revenues received or operating costs, other expenses and taxes paid by Buyer after the
Final Accounting Settlement which are attributable to the ownership or operation of the Properties prior to the Effective Time shall be billed or reimbursed to Seller, as appropriate. Any revenues received or costs, other expenses and taxes paid by
Seller after the Final Accounting Settlement which are attributable to the ownership or operation of the Properties after the Effective Time shall be billed or reimbursed to Buyer, as appropriate. 

  
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 ARTICLE 7. CASUALTY AND CONDEMNATION 

7.1 Casualty and Condemnation. If a substantial part of the Properties shall (a) be destroyed prior to Closing by a Casualty
Loss, or (b) be taken in condemnation or if proceedings for such purposes shall be pending; then either Buyer or Seller may terminate this Agreement prior to the Closing. For the purpose of this Section 7.1, the term
“substantial” shall be defined as Casualty Losses or Properties taken in condemnation that, individually, or in the aggregate: (i) will materially interfere with the ownership or operation of the Properties; or (ii) is reasonably
expected to result in a loss of revenue; or (iii) results in Claims, losses, damages or expenses of more than 15% of the unadjusted Purchase Price. If either party terminates this Agreement in accordance with this Article, or in accordance with
Section 14.1.3, neither party shall have any further obligations, except as provided in this Agreement. If neither party terminates this Agreement, this Agreement shall remain in full force and effect, and Seller and Buyer shall attempt to
agree on a reduction in the Purchase Price to compensate for the Casualty Loss or taking. If the Purchase Price is adjusted, Seller shall retain any and all sums paid to Seller, unpaid awards, insurance proceeds and other payments associated with or
attributable to such Casualty Loss or taking; and if the Purchase Price is not adjusted, Seller shall pay Buyer all such sums, awards, proceeds and other payments received by Seller and that are attributable to such Casualty Loss or taking.

 ARTICLE 8. INDEMNITIES 
 8.1 Opportunity for Review. Each party represents that it has had an adequate opportunity to review the following indemnity and release provisions, including the opportunity to submit the same
to legal counsel for review and comment. Based upon the foregoing representation, the parties agree to the provisions set forth below. For purposes of this Article 8, “Losses” means loss, damage, claim, liability, debt or expense
(including interest, reasonable legal fees and expenses in enforcing the indemnification obligations of the parties). 
 8.2
Seller’s Non-Environmental Indemnity Obligation For Third Party Claims. Claims, as used in Sections 8.2, S.4, 8.6 and 8.7 shall refer only to a Claim by a third party. Seller shall, subject to the limitations set forth below, release
Buyer from and shall fully protect, indemnify and defend Buyer, its directors, officers, agents, employees, legal counsel and financial advisors and Affiliates (collectively, the “Buyer Indemnified Parties”) and hold them harmless from and
against any and all Losses suffered or incurred by the Buyer Indemnified Parties that arise out of, result from, or are payable as a result of Claims relating to the following, but excluding Environmental Claims (“Seller Indemnified
Losses”): (a) the breach of any representation or warranty made by Seller in this Agreement, (b) the failure of Seller to perform any covenant or obligation required to be performed by it under this Agreement, (c) Claims against
the Buyer Indemnified Parties to the extent such Claims arise out of or are attributable to the ownership, use, condition or operation of the Properties prior to the Closing Date. Notwithstanding anything contained herein to the contrary, Seller
shall have no obligation under this Agreement or otherwise to protect, indemnify, defend and hold harmless Buyer Indemnified Parties from and against Claims for which Buyer has not provided Seller with written notice within one year after

  
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the Closing Date. The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of Buyer Indemnified Parties except acts of gross
negligence, bad faith or intentional misconduct. 
 8.3 Seller’s Environmental Indemnity. Seller shall,
subject to the limitations set forth below, release Buyer from and shall fully protect, indemnify and defend Buyer Indemnified Parties and hold them harmless from and against any and all Losses suffered or incurred by the Buyer Indemnified Parties
that arise out of, result from, or are payable as a result of Environmental Claims relating to the Properties prior to the Closing Date and which are attributable to periods during Seller’s ownership thereof. Notwithstanding anything contained
herein to the contrary, Seller shall have no obligation under this Agreement or otherwise to protect, indemnify, defend and hold harmless Buyer Indemnified Parties from and against Environmental Claims for which Buyer has not provided Seller with
written notice within six (6) months after the Closing Date. The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of Buyer Indemnified Parties except acts of gross
negligence, bad faith or intentional misconduct. 
 8.4 Buyer’s Indemnity Obligation For Third Party Claims.
Buyer shall, subject to the limitations set forth below, release Seller from and shall fully protect, indemnify and defend Seller, its directors, officers, agents, employees, legal counsel and financial advisors and Affiliates (collectively, the
“Seller Indemnified Parties”) and hold them harmless from and against any and all Losses suffered or incurred by the Seller Indemnified Parties that arise out of, result from, or are payable as a result of Claims relating to the following
(“Buyer Indemnified Losses”): (a) the breach of any representation or warranty made by Buyer in this Agreement, (b) the failure of Buyer to perform any covenant or obligation required to be performed by it under this Agreement,
(c) Claims against the Seller Indemnified Parties to the extent such Claims arise out of or are attributable to the ownership, use, condition or operation of the Properties following the Closing Date. Notwithstanding anything contained herein
to the contrary, Buyer shall have no obligation under this Agreement or otherwise to protect, indemnify, defend and hold harmless Seller Indemnified Parties from and against Claims relating to clauses (a) and (b) above for which Seller has
not provided Buyer with written notice within one (1) year after the Closing Date The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of Seller Indemnified Parties except
acts of gross negligence, bad faith or intentional misconduct. 
 8.5 Hazardous Substances. The parties acknowledge
that the Properties may contain asbestos NORM or other potentially hazardous substances, and that special procedures may be required for the assessment, remediation, removal, transportation or disposal of said asbestos, NORM or other potentially
hazardous substances. 
 8.6 Notice and Cooperation Regarding Third Party Claims. If a Claim by a Third Party is asserted
against a party for which the party would be liable under the provisions of this Article 8 it is a condition precedent to the indemnifying party’s obligations hereunder that the indemnified party gives the indemnifying party written notice of
such Claim setting forth full 

  
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particulars of the Claim, as known by the indemnified party, including a copy of the Claim (if it was a written Claim). The indemnified party shall make a good faith effort to notify the
indemnifying party in writing within fifteen (15) Days of receipt of a Claim and shall in all events effect such notice within such time as will allow the indemnifying party to defend against such Claim and no later than forty-five
(45) Days after receipt of the Claim by the indemnified party. The notice of a Claim given hereunder is referred to as a “Claim Notice.” 
 8.7 Defense of Third Party Claims. 
  

	 	8.7.1	Counsel. Upon receipt of a Claim Notice, the indemnifying party may assume the defense thereof with counsel selected by the indemnifying party and reasonably
satisfactory to the indemnified party. The indemnified party shall cooperate in all reasonable respects in such defense. If any Claim involves Claims with respect to which Buyer indemnifies Seller and also Claims for which Seller indemnifies Buyer,
each party shall have the right to assume the defense of and hire counsel for that portion of the Claim for which it may have liability. The indemnified party shall have the right to employ separate counsel in any Claim and to participate in the
defense thereof, provided the fees and expenses of counsel employed by an indemnified party shall be at the expense of the indemnified party, unless otherwise agreed between the parties. 

 

	 	8.7.2	Settlement. If the indemnifying party does not notify the indemnified party within the earlier to occur of: (a) the time that a response is due in any
litigation matter, or (b) one (I) calendar month after receipt of the Claim Notice, that the indemnifying party elects to undertake the defense thereof, the indemnified party has the right to defend, at the expense of the indemnifying
party, the Claim with counsel of its own choosing, subject to the right of the indemnifying party to assume the defense of any Claim at any time prior to settlement or final determination thereof. In such event, the indemnified party shall send a
written notice to the indemnifying party of any proposed settlement of any Claim, which settlement the indemnifying party may accept or reject, in its reasonable judgment, within thirty (30) Days of receipt of such notice, unless the settlement
offer is limited to a shorter period of time in which case the indemnifying party shall have such shorter period of time in which to accept or reject the proposed settlement. Failure of the indemnifying party to accept or reject such settlement
within the applicable time period shall be deemed to be its rejection of such settlement. The indemnified party may settle any matter over the objection of the indemnifying party but shall in so doing be deemed to have waived any right to indemnity
therefor as to (and only as to) liabilities with respect to which the indemnifying party has recognized its liability. 

  
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 8.8 Seller’s Indemnity Obligation For Claims by Buyer. Seller shall, subject
to the limitations set forth below, release Buyer from and shall fully protect, indemnify and defend Buyer, its directors, officers, agents, employees, legal counsel and financial advisors and Affiliates (collectively, the “Buyer Indemnified
Parties”) and hold them harmless from and against any and all Losses suffered or incurred by the Buyer Indemnified Parties that arise out of, result from, or are payable as a result of the following, but excluding Environmental Claims
(“Seller Indemnified Losses”): (a) the breach of any representation or warranty made by Seller in this Agreement, or (b) the failure of Seller to perform any covenant or obligation required to be performed by it under this
Agreement. Notwithstanding anything contained herein to the contrary, Seller shall have no obligation under this Agreement or otherwise to protect, indemnify, defend and hold harmless Buyer Indemnified Parties from and against Claims for which Buyer
has not provided Seller with written notice within one year after the Closing Date, except for Claims asserted as a breach of Seller’s representation in Section 10.17 for which Seller shall have no obligation hereunder for Claims as to
which Buyer has not provided Seller with written notice within six months after the Closing Date. The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of Buyer Indemnified Parties
except acts of gross negligence, bad faith or intentional misconduct. 
 8.9 Buyer’s Indemnity Obligation For Claims
by Seller. Buyer shall, subject to the limitations set forth below, release Seller from and shall fully protect, indemnify and defend Seller, its directors, officers, agents, employees, legal counsel and financial advisors and Affiliates
(collectively, the “Seller Indemnified Parties”) and hold them harmless from and against any and all Losses suffered or incurred by the Seller Indemnified Parties that arise out of, result from, or are payable as a result of, the following
(“Buyer Indemnified Losses”): (a) the breach of any representation or warranty made by Buyer in this Agreement, or (b) the failure of Buyer to perform any covenant or obligation required to be performed by it under this
Agreement. Notwithstanding anything contained herein to the contrary, Buyer shall have no obligation under this Agreement or otherwise to protect, indemnify, defend and hold harmless for Buyer Indemnified Losses described in clauses (a) and
(b) above for which Seller has not provided Buyer with written notice within one (i) year of the Closing Date. The indemnity obligation and release provided herein shall apply regardless of cause or of any negligent acts or omissions of
Seller Indemnified Parties except acts of gross negligence, bad faith or intentional misconduct. 
 8.10 Notice and
Defense of Other Claims. In the event a party should have a claim for indemnification hereunder that does not involve a Third Party Claim, the indemnified party shall as promptly as practicable, deliver to the indemnifying party a written notice
that contains (a) a description and the amount of any Losses incurred or suffered by the indemnified party (the “Claimed Amount”), (b) a statement that the indemnified party is entitled to indemnification and an explanation in
reasonable detail of the basis therefor, (c) a demand for payment by the indemnifying party. Within 30 Days after delivery of such written notice, the indemnifying party shall (i) agree that the indemnified party is entitled to receive all
of the Claimed Amount (in which case such response shall be accompanied by a payment by the indemnified party of the Claimed Amount), (ii) agree that the indemnified party is entitled to receive part, but not all, of the Claimed Amount (the
“Agreed Amount”) (in which case such response shall be accompanied 

  
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by payment by the indemnifying party of the Agreed Amount, but acceptance of the tender of such payment by the indemnified party shall not be deemed a waiver of that portion of the Claimed Amount
not tendered), or (iii) contest that the indemnified party is entitled to receive any of the Claimed Amount. 
 8.11
Limitation on Amount – Seller. Seller shall have no liability with respect to (i) Title Defects pursuant to Section 5.2, (ii) Third Party Claims pursuant to Section 8.2, (iii) Environmental Losses pursuant to
Section 8.3 and (iv) Claims by Buyer against Seller pursuant to Section 8.8, until the aggregate amount of the Defects, losses and claims described in clauses (i), (ii), (iii) and (iv) above exceed 2% of the unadjusted
Purchase Price. Buyer shall be responsible for any and all items described in clauses (i), (ii), (iii) and (iv) up to an aggregate amount of 2% of the unadjusted Purchase Price. 

ARTICLE 9. WARRANTIES AND DISCLAIMERS 
 9.1 Special Warranty of Title. Seller shall warrant and defend the title to the Properties conveyed to Buyer against every person whomsoever lawfully claiming the Properties or any part thereof
by, through or under Seller, but not otherwise. 
 9.2 Disclaimer – Representations and Warranties. Except as
set forth in this Agreement, Buyer acknowledges and agrees that the Properties are being transferred, assigned and conveyed from Seller to Buyer “AS-IS, WHERE-IS”, and with all faults in their present condition and state of repair, without
recourse, Except as set forth in this Agreement, Seller hereby disclaims any and all representations and warranties concerning the Properties, express, statutory, implied or otherwise, including without limitation, any warranty of title (except as
set forth in Section 9.1), the quality of hydrocarbon reserves, the quantity of hydrocarbon reserves, the amount of revenues, the present or future commodity prices, the amount of operating costs, condition (physical or environmental),
compliance with applicable Laws, absence of defects (latent or patent), safety, state of repair, merchantability or fitness for a particular purpose, and Buyer releases Seller from the same to the extent not provided in this Agreement.

 9.3 Disclaimer – Statements and Information. Except as set forth in this Agreement, Seller disclaims any and
all liability and responsibility for and associated with the quality, accuracy, completeness or materiality of the data, information and materials furnished (orally or in writing) at any time to Buyer, its officers, agents, employees and Affiliates
in connection with the transaction contemplated herein, including without limitation, the quality of hydrocarbon reserves, the quantity of hydrocarbon reserves, the amount of revenues, the present or future commodity prices, the amount of operating
costs, the financial data, the contract data, the environmental condition of the Properties, the physical condition of the Properties and the continued financial viability of the Properties, and Buyer releases Seller from the same. 

  
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 ARTICLE 10. SELLER’S REPRESENTATIONS AND WARRANTIES 

As used herein, “Seller’s knowledge” means the actual knowledge of Seller’s officers or of the supervisory personnel
directly responsible for the Properties, without any duty of inquiry. Except as disclosed on Exhibit H. Seller represents and warrants the following to Buyer as of the date hereof and as of the Closing Date: 

10.1 Organization and Good Standing. Seller is a limited liability company duly organized, validly existing and in good standing
under the Laws of the State of Delaware and has all requisite limited liability company power and authority to own and operate the Properties as currently being operated. Seller is duly licensed or qualified to do business as a foreign limited
liability company and is in good standing in all jurisdictions in which the Properties are located. 
 10.2 Limited Liability
Company Authority: Authorization of Agreement. Seller has all requisite limited liability company power and authority to execute and deliver this Agreement, to consummate the transactions contemplated herein and to perform all of the terms and
conditions to be performed by it as provided for in this Agreement. This Agreement has been duly executed and delivered by Seller and constitutes the valid and binding obligation of Seller, enforceable against it in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency or other Laws relating to or affecting the enforcement of creditors’ rights and general principles of equity (regardless of whether such enforceability is considered in a
proceeding at law or in equity). 
 10.3 No Violations. The execution and delivery of this Agreement by Seller do not,
and the fulfillment and compliance with the terms and conditions hereof and the consummation of the transactions contemplated herein, will not: 
  

	 	(a)	Conflict with or require the consent of any person or entity under any of the terms, conditions or provisions of the certificate of organization and operating agreement
of Seller; 

  

	 	(b)	Violate any provision of, or require any filing, consent or approval under any Law applicable to or binding upon Seller or the Properties (assuming receipt of all
consents and approvals of governmental entities or tribal authorities that are ministerial in nature and customarily obtained subsequent to the transfers of title); 

 

	 	(c)	Conflict with, result in a breach of, constitute a default under or constitute an event that with notice or lapse of time, or both, would constitute a default under,
accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, (i) any mortgage, indenture, loan, credit agreement or other agreement, evidencing indebtedness for borrowed money to
which Seller is a party or by which Seller is bound or (ii) any order, judgment or decree of any governmental entity or tribal authority; or (iii) any other agreements or contracts, including without limitation the Contracts, to which
Seller is a party or otherwise bound. 

  
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 10.4 Litigation. There is no action, suit or proceeding pending, or to Seller’s
knowledge, threatened, against Seller or the Properties related to the ownership or operation of the Properties or that could materially affect the value of the Properties or prevent the consummation of the transaction contemplated by this
Agreement. Seller will retain all responsibility for, and shall indemnify Buyer with respect to, all damages, losses, liabilities, costs and expenses arising or related to the matters identified in Exhibit I. 

10.5 [Intentionally omitted.] 
 10.6 Bankruptcy. There are no bankruptcy, reorganization or receivership proceedings pending, being contemplated by, or threatened against Seller. 

10.7 Consents and Governmental Approvals. To Seller’s knowledge. Seller is not required to make any filing with or obtain any
authorization, consent or approval of any government or governmental agency or Third Party in order for the parties to consummate the transactions contemplated by this Agreement, except where the failure to take such action would not materially
impair the ability of the parties to consummate the transactions contemplated by this Agreement. 
 10.8 Compliance with
Laws. As respects each Property operated by Seller or an Affiliate of Seller, Seller is, and the Properties are, in compliance in all material respects with all legal requirements and, as respects each Property which is not operated by Seller or
an Affiliate of Seller, to Seller’s Knowledge Seller is, and the Properties are, in compliance in all material respects with all legal requirements applicable to the ownership, use, maintenance or operation of the Properties. The foregoing
excludes Environmental Laws and the exclusive representation regarding Environmental Laws is in Section 10.17. 
 10.9
No Gas Imbalances. There exist no gas imbalances with respects to the Properties whereby Seller is an overproduced party resulting in an obligation either to pay money or to deliver in the future a share of gas production from any Property in
excess of that otherwise attributable to Seller’s represented interest in such Property. 
 10.10 Payment of
Royalties. All royalties, overriding royalties and other payments out of production from the Properties prior to the Effective Time, or based on the proceeds from the disposition of such production, including interest and penalties thereon, have
been properly and fully paid by or on behalf of Seller. 
 10.11 Other Payments. All payments due under the Leases prior
to Closing to maintain the same in full force and effect have been fully and properly paid. 
 10.12 No Prepayments.
Seller is not obligated by virtue of any prepayment arrangement under any contract for the sale of production from the Properties or containing take or pay or other similar provisions, of a production payment or any other arrangement, to deliver
production attributable to the Properties at some future time without then or thereafter receiving full payment therefor. 

  
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 10.13 Preferential Rights. There are no preferential purchase rights, options to
purchase or other similar rights outstanding in favor of third persons which relate to the Properties or any of them. 
 10.14
Seller’s Right to Payment Receipt. Seller is timely receiving its full share of proceeds attributable to its represented interests in the Properties without suspense, counterclaim, set off or reduction, and there has been no production
from any of the Properties in excess of the allowable production as established by any regulatory authority that would result in a restriction of production from any of the Properties subsequent to the Effective Time. 

10.15 No Encumbrances. The Properties are free and clear of all liens, mortgages, deeds of trust, security interests and financing
statements of any kind whatsoever, excepting only the Permitted Encumbrances. 
 10.16 Material Contracts. Seller has set
forth on Exhibit C all Material Contracts, provided, however, in the case where Seller has multiple Material Contracts substantially in the same form, then Exhibit C includes only one such Material Contract to set forth the form of the
Material Contract and no attempt is made to list all other Material Contracts of the same form. Except as set forth in Section 10.16 of Exhibit H, (i) all such Material Contracts are in full force and effect and (ii) no
material default or breach of any such Material Contract has occurred or is continuing as of the date of this Agreement and the Closing Date. 
 10.17 Environmental and Safety Matters. Seller has set forth in Section 10.17 of Exhibit H all exceptions to the following representations and warranties: (a) to Seller’s
Knowledge, the Properties and the ownership, use, maintenance and operation thereof are in material compliance with all applicable Environmental Laws and with all applicable environmental permits; (b) to Seller’s Knowledge, all prior
instances of non-compliance have been fully and finally resolved to the satisfaction of all governmental authorities with jurisdiction over such matters, to the extent governmental authorities were involved with any prior instance of non-compliance;
(c) there are no civil, criminal or administrative actions, lawsuits, demands, litigation, claims or hearings relating to an alleged breach of Environmental Laws on or with respect to the Properties; (d) Seller has not received any written
notice of any third person environmental or health or safety claim, demand, filing, investigation, administrative proceeding, action, suit or other legal proceeding relating to the Properties (“Environmental Action”) or written notice of
any alleged violation or non-compliance with any Environmental Law or of non-compliance with any environmental permits, arising from, based upon, associated with or related to the Properties or the ownership or operation of any thereof; (e) to
Seller’s Knowledge, no pollutant, waste, contaminant or hazardous, extremely hazardous or toxic material, substance, chemical or waste identified, defined or regulated as such under any Environmental Law is present or has been handled, managed,
stored, transported, processed, treated, disposed of, released, migrated or escaped on, in, from, under or in connection with the Properties or the ownership or operation of any thereof, such as to cause a condition or circumstance that would
reasonably be expected to result in an Environmental Action or a violation of any Environmental Law. The representations and warranties in this Section 10.17 are limited to the period of time during which Seller owned the Properties.

  
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 ARTICLE 11. BUYER’S REPRESENTATIONS AND WARRANTIES 

Buyer represents and warrants to Seller that on the date hereof and as of the Closing Date: 

11.1 Organization and Good Standing. Buyer is a corporation duly organized and validly existing under the Laws of the State of
Oklahoma and has all requisite corporate power and authority to own the Properties. Buyer is, or will be upon Closing, duly licensed or qualified to do business as a foreign corporation in all jurisdictions in which the Properties are located.

 11.2 Corporate Authority: Authorization of Agreement. Buyer has all requisite corporate power and authority to execute
and deliver this Agreement, to consummate the transactions contemplated herein and to perform all the terms and conditions to be performed by it as provided for in this Agreement. The execution and delivery of this Agreement by Buyer, the
performance by Buyer of all the terms and conditions to be performed by it and the consummation of the transactions contemplated herein have been duly authorized and approved by all necessary corporate action. This Agreement has been duly executed
and delivered by Buyer and constitutes the valid and binding obligation of Buyer, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency or other Laws relating to or affecting the
enforcement of creditors’ rights and general principles of equity (regardless of whether such enforceability is considered in a proceeding at law or in equity). 
 11.3 No Violations. The execution and delivery of this Agreement by Buyer does not, and the fulfillment and compliance with the terms and conditions hereof and the consummation of the transactions
contemplated herein, will not: 
  

	 	(a)	Conflict with or require the consent of any person or entity under any of the terms, conditions or provisions of Buyer’s articles of incorporation or bylaws of
Buyer; 

  

	 	(b)	Violate any provision of, or require any filing, consent or approval under any Law applicable to or binding upon Buyer; or 

 

	 	(c)	Conflict with, result in a breach of, constitute a default under or constitute an event that with notice or lapse of time, or both, would constitute a default under,
accelerate or permit the acceleration of the performance required by, or require any consent, authorization or approval under, (i) any mortgage, indenture, loan, credit agreement or other agreement evidencing indebtedness for borrowed money to
which Buyer is a party or by which Buyer is bound, or (ii) any order, judgment or decree of any governmental entity or tribal authority. 

 11.4 SEC Disclosure. Buyer is acquiring the Properties for its own account for use in its trade or business, and not with a view toward or for sale in connection with any distribution thereof, nor
with any present intention of making a distribution thereof within the meaning of the Securities Act of 1933, as amended. 

  
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 11.5 Independent Evaluation. Buyer represents that it is sophisticated in the
evaluation, purchase, operation and ownership of oil and gas properties and related properties. In making its decision to enter into this Agreement and to consummate the transaction contemplated herein, Buyer represents that it has relied solely on
its own independent investigation and evaluation of the Properties together with the representations and warranties of Seller set forth in this Agreement. Subject to the provisions herein, Buyer has satisfied itself as to the physical condition and
the environmental condition of the Properties. 
 ARTICLE 12. ADDITIONAL AGREEMENTS 

12.1 Covenants of Seller. 
  

	 	(a)	From the date hereof until the Closing, without first obtaining the consent of Buyer, Seller will not: 

 

	 	(i)	waive any right of material value relating to the Properties, other than in the ordinary course of business; 

 

	 	(ii)	convey, encumber, mortgage, pledge or dispose of any of the Properties, other than in the ordinary course of business; 

 

	 	(iii)	enter into, modify or terminate any contracts, other than in the ordinary course of business; 

 

	 	(iv)	(a) make or commit to make any expenditure of funds or otherwise incur any other obligations or liabilities with respect to the Properties without Buyer’s
consent other than (i) amounts in connection with the drilling of wells as to which Seller elected to participate prior to the Closing, (ii) for amounts less than $10,000, (iii) to pay expenses or incur liabilities in connection with the
routine operation of the Properties after the Effective Time, and (iv) in the case of an emergency requiring immediate action to protect life or preserve the Properties; or (c) elect (through explicit election, failure to act, or otherwise) to
go non-consent with respect to an operation without Buyer’s consent. Prior to committing, prior to Closing, to drill any well. Seller shall notify and consult with Buyer, but Seller shall have the final determination of whether or not to
commit; or 

  

	 	(v)	contract or commit itself to do any of the foregoing. 

  
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	 	(b)	Seller will cooperate with Buyer, at Buyer’s expense, in any reasonable manner in connection with Buyer’s efforts to obtain licenses and permits that it may
need in order to own and receive the benefits of the Properties after the Closing. 

 ARTICLE 13. CONDITIONS
PRECEDENT TO CLOSING 
 13.1 Conditions Precedent to Seller’s Obligation to Close. Seller shall be obligated to
consummate the sale of the Properties as contemplated by this Agreement on the Closing Date, provided the following conditions precedent have been satisfied or have been waived by Seller: 

 

	 	13.1.1	All representations and warranties of Buyer contained in this Agreement shall be true and correct in all material respects at and as of Closing as though such
representations and warranties were made at and as of such time; and 

  

	 	13.1.2	Buyer shall have complied in all material respects with all obligations and conditions contained in this Agreement to be performed or complied with by Buyer on or prior
to the Closing. 

 13.2 Conditions Precedent to Buyer’s Obligation to Close. Buyer shall be obligated
to consummate the purchase of the Properties as contemplated by this Agreement on the Closing Date, provided the following conditions precedent have been satisfied or have been waived by Buyer; 

 

	 	13.2.1	All representations and warranties of Seller contained in this Agreement shall be true and correct in all material respects at and as of Closing as though such
representations and warranties were made at and as of such time; and 

  

	 	13.2.2	Seller shall have complied in all material respects with all obligations and conditions contained in this Agreement to be performed or complied with by Seller on or
prior to the Closing. 

 13.3 Conditions Precedent to Obligation of Each Party. The parties shall be
obligated to consummate the sale and purchase of the Properties as contemplated in this Agreement on the Closing Date, provided the following conditions precedent have been satisfied or have been waived by the parties: 

 

	 	13.3.1	 No suit, action or other proceedings shall be pending before any court or governmental entity in which it is sought by a person or entity other than
the parties hereto or any of their Affiliates, officers, directors, or employees to restrain, enjoin or otherwise prohibit the consummation of the transactions contemplated by this Agreement, or to obtain substantial damages in connection with the
transaction contemplated herein, nor shall there be any investigation by a governmental entity pending which might 

  
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result in any such suit, action or other proceedings seeking to restrain, enjoin or otherwise prohibit the consummation of the transaction contemplated by this Agreement;

  

	 	13.3.2	All consents and approvals, if any, whether required contractually or by applicable federal, state, local or tribal Law, or otherwise necessary for the execution,
delivery and performance of this Agreement by a party (except for consents and approvals of governmental entities or tribal authorities ministerial in nature and customarily obtained subsequent to the transfer of title) shall have been obtained and
delivered to the other party by the Closing and shall not have been withdrawn or revoked. It is provided, however, that in the event that any such consents to assign any of the Properties have not, despite the diligent efforts of Seller, been
obtained by Closing, then Closing shall nevertheless proceed. Seller shall retain the portions of the Properties for which consents have not been obtained and this Agreement shall not be construed as a commitment to assign or to receive assignments
of agreements or rights in contravention of any applicable assignment restrictions. Seller will, following Closing, continue to diligently pursue obtaining those consents. In the event that Seller is unable to obtain any such necessary
authorization, consent, or waiver within sixty (60) Days following Closing, Seller shall (a) cooperate, at Buyer’s request and at Buyer’s expense, in any lawful arrangement designed to provide Buyer with the benefits of any such
non-assignable portions of the Properties, and (b) enforce, at the request of Buyer and for the benefit of Buyer and at Buyer’s expense, any rights of Seller arising from any non-assignable portions of the Properties; provided, Seller
shall have no liability to Buyer for any Claims arising from or related to the agreements or assignments subject to the foregoing arrangement described in (a) and (b), above, or Claims arising from or related to the arrangement described in
(a) and (b), above; and 

  

	 	13.3.3	Except for the conditions set forth in this Article 13. there are no other conditions precedent to the obligations of the parties to proceed to Closing; and, without
limiting the generality of the foregoing, the parties agree that any changes in commodity pricing, production volumes or changes in the financial condition of a party shall not be a condition on which a party may elect not to proceed to Closing.

 ARTICLE 14. TERMINATION 
 14.1 Grounds for Termination. By notice given prior to at the Closing, this Agreement maybe terminated at any time prior to Closing: 

 

	 	14.1.1	By the mutual written agreement of Seller and Buyer; 

  
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	 	14.1.2	By either Seller or Buyer if the consummation of the transactions contemplated herein would violate any order, decree or judgment of any governmental entity having
appropriate jurisdiction enjoining or awarding damages in connection with the consummation of the transactions contemplated herein; 

  

	 	14.1.3	By either Seller or Buyer pursuant to any rights to terminate hereunder; or 

 

	 	14.1.4	Notwithstanding anything contained in this Agreement to the contrary, by either party if Closing shall not have occurred by December 1, 2011, and such party
electing to terminate is not in default of any of its agreements or obligations under this Agreement, and has not caused the delay. 

  

	 	(a)	If (i) all conditions precedent to the obligations of Buyer set forth in Sections 13.2 and 13.3 have been met and (ii) the transactions contemplated by this
Agreement are not consummated on or before the Closing Date because of: (A) the failure of Buyer to perform any of its obligations hereunder or (B) the failure of any of Buyer’s representations and warranties hereunder to be true and
correct in all material respects as of the Closing, then, in such event, Seller shall have, as Seller’s sole and exclusive remedy, the right to terminate this Agreement and retain the Deposit, together with all interest earned thereon, as
liquidated damages, SELLER WAIVING ALL OTHER RIGHTS, REMEDIES AND DAMAGES THAT IT MAY HAVE IN SUCH EVENT. 

  

	 	(b)	If (i) all conditions precedent to the obligations of Seller set forth in Sections 13.1 and 13.3 have been met and (ii) the transactions contemplated by this
Agreement are not consummated on or before the Closing Date because of: (A) the failure of Seller to perform any of its obligations hereunder or (B) the failure of any of Seller’s representations and warranties hereunder to be true
and correct in all material respects as of the Closing, then, in such event, Buyer shall be entitled as its sole and exclusive remedies to either (x) seek all remedies arising in equity by reason of such default, including without limitation
seeking specific performance of this Agreement, or (y) terminate this Agreement in which event Buyer shall be entitled to receive a prompt refund of the Deposit from the Escrow Agent. In the event Buyer elects to seek remedies arising in equity
and is either unsuccessful in obtaining a judgment therefor or elects to discontinue seeking equitable remedies. Buyer shall be entitled to terminate this Agreement and receive a prompt refund of the Deposit from the Escrow Agent. BUYER WAIVING ALL
OTHER RIGHTS, REMEDIES AND DAMAGES THAT IT MAY HAVE IN SUCH EVENT. 

  
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	 	(c)	If (i) this Agreement is terminated by the mutual written consent of Buyer and Seller, (ii) the Closing does not occur on or before the Closing Date for any
reason other than those set forth in 14.1(a) or 14.1(b). or (iii) this Agreement is terminated for any reason other than those set forth in 14.1(a) or 14.1(b), then Buyer shall be entitled to the return of, and the Escrow Agent shall
immediately return to Buyer, the Deposit, plus any interest thereon, free of any claims by Seller. Buyer and Seller shall, in that event, have the rights and obligations set forth in Section 14.2. 

14.2 Effect of Termination. In the event that the Closing does not occur as a result of either Seller or Buyer exercising its
right not to close pursuant to Section 14.1, then except for the provisions of 14.1(b) and this Section 14.2, and Article 16, this Agreement shall be null and void and neither Seller nor Buyer shall have any rights or obligations under
this Agreement, except that nothing shall relieve Seller or Buyer from liability for any willful breach of its covenants or agreements; provided that retention of the Deposit shall be the Seller’s sole and exclusive remedy, shall serve as
liquidated damages, and such retention shall constitute full and complete satisfaction of any and all damages Seller may have against Buyer, and all other rights, remedies and damages are hereby waived by Seller. 

14.3 Dispute over Right to Terminate. If there is a dispute between the parties over either party’s right to terminate this
Agreement under Section 14.1, the Closing shall not occur, as scheduled. In such event, the dispute shall first be submitted to non-binding mediation as a condition precedent to proceeding with any court action. The mediator shall be chosen by
Seller and Buyer. Mediation must commence within fifteen (15) Days after the scheduled Closing and shall conclude within thirty (30) Days of the initiation of mediation. 

14.4 Return of Documents. If this Agreement is terminated prior to Closing, each party shall return to the party which owns or is
otherwise entitled thereto all documents, including, but not limited to, books. Records, maps, files, papers, data and other property in such party’s possession, whether in hard copy or electronic form relating to the transaction contemplated
by this Agreement. 
 ARTICLE 15. THE CLOSING 
 15.1. Closing. Three (3) Business Days prior to the Closing Date, Seller shall provide Buyer with a Closing statement setting forth the adjusted Purchase Price. Seller shall additionally
provide Buyer with wiring instructions designating the account or accounts to which the Closing funds are to be delivered. Closing shall be held in Seller’s office in Denver, Colorado, or any other location as mutually agreed upon in writing by
Seller and Buyer. 
 15.2 Obligations of Seller at Closing. At the Closing, Seller shall deliver to Buyer, unless waived
by Buyer, the following: 
  

	 	15.2.1	 Documents conveying the Properties substantially in the form of the Assignment and Bill of Sale attached hereto as Exhibit E. The

  
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Assignment and Bill of Sale shall be executed and acknowledged in four (4) multiple originals or such greater number as agreed between the parties; 

 

	 	15.2.2	Letters in Lieu of Transfer or Division Order substantially in the form of Exhibit F; 

 

	 	15.2.3	A Non-Foreign Affidavit executed by Seller substantially in the form of Exhibit G: 

 

	 	15.2.4	Such evidence of authority with respect to Seller as might be reasonably requested by Buyer; 

 

	 	15.2.5	The Records; and 

  

	 	15.2.4	Such other instruments requested by Buyer as necessary to carry out Seller’s obligations under this Agreement. 

15.3 Obligations of Buyer at Closing. At the Closing, Buyer shall deliver to Seller, unless waived by Seller, the following:

  

	 	15.3.1	The Assignment and Bill of Sale documents, executed and properly acknowledged, referred to in Section 15.2.1; 

 

	 	15.3.2	The adjusted Purchase Price by wire transfer in accordance with Article 3 hereof, in accordance with written instructions to be provided by Seller; and

  

	 	15.3.3	Such other instruments requested by Seller as necessary to carry out Buyer’s obligations under this Agreement. 

ARTICLE 16. MISCELLANEOUS 
 16.1 Notices. Except as otherwise provided herein, any notices or other communications required or permitted by this Agreement shall be in writing and delivered personally, via facsimile, or by
messenger or a nationally recognized overnight courier service, or alternatively, shall be sent by United States certified mail, postage prepaid and return receipt requested. The effective time of any notice shall be the date of delivery of the
notice, if by personal delivery, facsimile, messenger or courier service, or if mailed, on the date upon which the return receipt is signed or delivery is refused or the notice is designated by the postal authorities as non-deliverable, as the case
may be. The parties hereby designate the addresses set forth below as their respective notice addresses under this Agreement. Each party may change its address by notifying the other party in writing delivered in accordance with this section.

  
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 If to Seller: 

Flatirons Development, LLC 
 303 E. 17th
Avenue, Suite 940 
 Denver, CO 80203 
 Attn: John Chandler 
 Ph: 303-292-3902 

Fax: 303-292-2579 

Email: johnc@flatironslle.com 
 If to Buyer: 
 Panhandle Oil and Gas Inc. 

5400 N. Grand Blvd., Suite 300 
 Oklahoma City, Oklahoma 73112 
 Attention: Michael C. Coffman, President

 Telephone: (405) 948-1560 
 Facsimile: (405) 948-2038 
 Email: mcoffman@panhandleoilandgas.com 

16.2 Conveyance Costs. Buyer shall be solely responsible for filing and recording documents related to the transfer of the
Properties from Seller to Buyer and for all costs and fees associated therewith, including filing the assignment of the Properties with appropriate federal, state, local and tribal authorities as required by applicable Law. Within ninety
(90) Days after Closing, Buyer shall furnish Seller with all recording data and evidence of all required filings. 
 16.3
Brokers’ Fees. Seller has retained Energy Spectrum Advisors, Inc. (“ESA”) and is solely liable for any compensation claimed by ESA. Each party agrees to release, protect, indemnify, defend and hold the other harmless from
and against any and all Claims with respect to any commissions, finders’ fees or other remuneration due to any broker, agent or finder claiming by, through or under such party. 

16.4 Further Assurances. From and after Closing, at the request of Seller but without further consideration, Buyer will execute
and deliver or use reasonable efforts to cause to be executed and delivered such other instruments of conveyance and take such other actions as Seller reasonably may request to more effectively put Seller in possession of any property which was not
intended by the parties to be conveyed by Buyer. From and after Closing, at the request of Buyer but without further consideration, Seller shall execute and deliver or use reasonable efforts to cause to be executed and delivered such other
instruments of conveyance and take such other actions as Buyer reasonably may request to more effectively put Buyer in possession of the Properties. If any of the Properties are incorrectly described, the description shall be corrected upon proof of
the proper description. 
 16.5 Survival of Representations and Warranties. The representations and warranties
contained in this Agreement shall survive until the first anniversary of the Closing Date and be of no further force thereafter, except for the representations and 

  
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warranties set forth in Section 10.17 which shall survive for a period of 6 months following the Closing Date and thereafter be of no further force and except for Seller’s special
warranty of title which shall survive the Closing indefinitely. The parties have made no representations or warranties, except those set forth in this Agreement. 
 16.6 Amendments and Severability. No amendments or other changes to this Agreement shall be effective or binding on either of the parties unless the same shall be in writing and signed by both
Seller and Buyer. The invalidity of any one or more provisions of this Agreement shall not affect the validity of this Agreement as a whole, and in case of any such invalidity, this Agreement shall be construed as if the invalid provision had not
been included herein, 
 16.7 Successors and Assigns. This Agreement shall not be assigned, either in whole or in part,
without the written consent of the non-assigning party. The terms, covenants and conditions contained in this Agreement shall be binding upon and shall inure to the benefit of Seller and Buyer and their respective successors and assigns, and such
terms, covenants and conditions shall be covenants running with the land and with each subsequent transfer or assignment of the Properties. 
 16.8 Headings. The titles and headings set forth in this Agreement have been included solely for ease of reference and shall not be considered in the interpretation or construction of this
Agreement. 
 16.9 Governing Law. This Agreement shall be governed by and construed under the Laws of the State of
Colorado excluding any choice of law rules which may direct the application of the Laws of another jurisdiction provided that with respect to all legal issues involving or relating to the Properties, the laws of the State of Arkansas shall
apply. 
 16.10 No Partnership Created. It is not the purpose or intention of this Agreement to create (and it shall
not be construed as creating) a joint venture, partnership or any type of association, and the parties are not authorized to act as agent or principal for each other with respect to any matter related hereto. 

16.11 Public Announcements. Neither Seller nor Buyer (including any of its affiliates in either case) shall issue a public
statement or press release with respect to the transaction contemplated herein (including the price and other terms) without the prior written consent of the other party, except as required by Law or listing agreement with a national security
exchange. 
 16.12 No Third Party Beneficiaries. Nothing contained in this Agreement shall entitle anyone other than
Seller or Buyer or their authorized successors and assigns to any Claim, cause of action, remedy or right of any kind whatsoever. 
 16.13 Not to be Construed Against Drafter. The parties acknowledge that they have had an adequate opportunity to review each and every provision contained in this Agreement and to submit
the same to legal counsel for review and comment. Based on said review and consultation, the parties agree with each and every term contained in this 

  
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Agreement. Based on the foregoing, the parties agree that the rule of construction that a contract be construed against the drafter, if any, shall not be applied in the interpretation and
construction of this Agreement. 
 16.14 Entire Agreement. This Agreement supersedes all prior and contemporaneous
negotiations, understandings, letters of intent and agreements (whether oral or written) between the parties relating to the Properties and constitutes the entire understanding and agreement between the parties with respect to the sale and purchase
of the Properties. 
 16.15 Conspicuousness of Provisions. The parties acknowledge that the provisions contained in
this Agreement that are set out in “bold” satisfy the requirement of the express negligence rule and any other requirement at law or in equity that provisions contained in a contract be conspicuously marked or highlighted.

 16.16. Arbitration. Any dispute arising under Section 5.2 (“Arbitrable Dispute”) shall be referred
to and resolved by binding arbitration in Denver, Colorado, by one (1) arbitrator, in accordance with the rules and procedures of the Judicial Arbiter Group (“JAG”); and, to the maximum extent applicable, the Federal Arbitration Act
(Title 9 of the United States Code). If there is any inconsistency between this Article and any statute or rules, this Article shall control. Arbitration shall be initiated within the applicable time limits set forth in this Agreement and not
thereafter by one party (“Claimant”) giving written notice to the other party (“Respondent”) and to JAG, that the Claimant elects to refer the Arbitrable Dispute to arbitration. The Claimant and the Respondent shall name an
arbitrator within thirty (30) Days after receipt of Claimant’s notice. Upon failure of the parties to act within the time specified for naming an arbitrator, the arbitrator shall be appointed by the JAG. Seller and Buyer shall each pay
one-half of the compensation and expenses of the arbitrator. The arbitrator must be a neutral party who has never been an officer, director, employee, contractor or agent of the parties or any of their Affiliates, must have not less than ten
(10) years experience in the oil and gas industry, and must have a formal financial/accounting, engineering or legal education. The parties shall have all rights of discovery in accordance with the Federal Rules of Civil Procedure. The hearing
shall be commenced within thirty (30) Days after the selection of or appointment of the arbitrator. The parties and the arbitrator shall proceed diligently and in good faith in order that the arbitral award shall be made as promptly as
possible. The interpretation, construction and effect of this Agreement shall be governed by the Laws of Colorado, and to the maximum extent allowed by law, in all arbitration proceedings the Laws of Colorado shall be applied without regard to any
conflicts of Laws principles provided that with respect to all legal issues involving or relating to the Properties, the laws of the State of Arkansas shall apply. All statutes of limitation and of repose that would otherwise be applicable shall
apply to any arbitration proceeding. The arbitrator shall not have the authority to grant or award indirect or consequential damages, punitive damages, exemplary damages or special damages. 

16.17 Waiver of Certain Damages. Each of the parties hereby waives, and agrees not to seek indirect, consequential, exemplary,
punitive or special damages of any kind with respect to any Claim or dispute, arising out of or relating to this Agreement or breach 

  
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hereof, including without limitation, any breach of any representation or warranty contained herein. This provision does not diminish or affect in any way the parties’ rights and
obligations under any indemnities provided in this Agreement. 
 16.18 Attorneys’ Fees. If any legal action
should be commenced in any court or arbitral body regarding any dispute arising between the parties hereto, or their successors and assigns, concerning any provision of this Agreement or the rights and duties of any person in relation thereto, then
the prevailing party therein shall be entitled to collect its reasonable expenses, attorneys’ fees and costs, including the same on appeal. As used herein, the term “prevailing party” means the party who, in light of the claims,
causes of action, and defenses asserted, is afforded greater relief. 
 16.19 Execution in Counterparts; Facsimile
Execution. This Agreement may be executed in counterparts, which shall when taken together constitute one (1) valid and binding agreement. The execution and delivery of this Agreement by any party may be evidenced by facsimile transmission
thereof or by electronic mail in pdf format. 
 The parties have executed this Agreement on the day and year set forth below.

  

							
	SELLER:	  		  	
	FLATIRONS DEVELOPMENT, LLC	  		  	
				
	By:	  	 

	  		  	Date: September 30, 2011
				
	Name:	  	 John Chandler
	  		  	
				
	Title:	  	 Managing Director
	  		  	
			
	BUYER:	  		  	
	PANHANDLE OIL AND GAS INC.	  		  	
				
	By:	  	 

	  		  	Date: September 30, 2011
				
	Name:	  	 Michael C. Coffman
	  		  	
				
	Title:	  	 President and CEO
	  		  	

  
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 LIST OF EXHIBITS AND SCHEDULES 

Exhibit A – Lands and Leases 
 Exhibit B
– Wells (with Working and Net Revenue Interests) 
 Exhibit C – Contracts 
 Exhibit D – Allocated Values 
 Exhibit E – Assignment and Bill of Sale 

Exhibit F – Letter in Lieu of Transfer or Division Order 
 Exhibit G – Non-Foreign Affidavit 
 Exhibit H – Disclosure Schedules 

Exhibit I – Seller’s Retained Liabilities 
 Exhibit J – Form of Escrow Agreement 

  
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