Document:

Exhibit 10.29

IURTC Agreement Number ASS-0313-BB

 

 

 

 

Portions of this exhibit marked [*] are
requested to be treated confidentially.

 

EXCLUSIVE LICENSE AGREEMENT

OF SEPTEMBER 3, 2013

 

between

 

INDIANA UNIVERSITY RESEARCH AND TECHNOLOGY
CORPORATION

  

and

 

ASSEMBLY PHARMACEUTICALS, INC.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

Introduction:
This exclusive license agreement (the “Agreement”) is made and entered into as of September 3, 2013 (the “Effective
Date”) by and between:

 

The Indiana University
Research and Technology Corporation (“IURTC”), a non-profit corporation organized under the laws of the state of Indiana,
having its principal offices at 351 West 10th Street, Indianapolis, Indiana 46202, and

 

Assembly Pharmaceuticals,
Inc. (“Assembly”), a company organized under the laws of the state of Delaware, having its principal offices at 615
S. Clifton Ave., Bloomington, IN, 47401.

 

		1	Background: Certain Patent
Rights (as defined below) have been invented by Adam Zlotnick, Stella Aniagyei, Lichun Li, Michael S. VanNieuwenhze, Willam W.
Turner at Indiana University , M.G. Finn at the Scripps Research Institute, Daniel D. Loeb at the University of Wisconsin (each
of Zlotnick, Aniagyei, Li, VanNieuwenhze, Turner, Finn and Loeb, collectively, the “Inventors”), and Massimo Levrero
at Sapienza University.

 

Under an inter-institutional
agreement between IURTC and the the Scripps Research Institute; through a memorandum of understanding with Indiana University (
Scripps and Indiana University collectively the “Institutions”); and by a direct assignment of Daniel D. Loeb to IURTC;
IURTC has the sole right to grant licenses to IURTC’s and the Institutions’ patent rights. IURTC does not have the
right to grant licenses to any ownership rights of Massimo Levrero or Sapienza University, and such ownership rights are not subject
to this Agreement.

 

IURTC wishes to allow these Patent
Rights to be used to further scientific research, for new product development, and for other applications in the public interest,
and it is willing to grant a license for such uses. Assembly represents to IURTC that it has the necessary product development,
manufacturing, and marketing capabilities to commercialize products based on such Patent Rights. Assembly desires to obtain a license
to commercialize these intellectual property rights upon the terms and conditions set forth in this Agreement. In consideration
of these premises and the mutual promises contained herein, the Parties further agree as follows:

  

	 	2	Definitions: For the purposes of this Agreement, the following words and phrases have the meanings assigned to them below.

  

		2.1	Affiliate: Any person or entity that, directly or indirectly, owns or controls Assembly
or that is owned or controlled by or under common ownership or control with Assembly. Own(s) or control(s) means:

 

		2.1.1	Direct or indirect ownership of at least 50% of the outstanding voting securities of a corporation;

 

		2.1.2	The right to receive at least 50% of the earnings of the person, corporation, or other entity in
question; or

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

  

		2.1.3	The right to control the business decisions of the person, corporation, or other entity in question.

 

		2.2	Development Plan: Assembly’s
good faith, bona fide plan for the development, manufacture, promotion, importation, use, sale and/or marketing of Licensed Products.
The Development Plan will include, at a minimum:

 

		2.2.1	A definition and/or specification of each Licensed Product planned for development;

 

		2.2.2	Tasks to be performed by Assembly, its contractors and/or Sublicensees to develop each Licensed
Product to the point of commercialization, including estimated time schedules for specific tasks;

 

		2.2.3	Tasks to be performed to achieve any regulatory approval or other certification of each Licensed
Product, including estimated time schedules for each; and

 

		2.2.4	Identification of the primary country(ies) in which Assembly plans to sell each Licensed Product
and a good faith estimate of time of First Commercial Sale in the primary country(ies).

 

		2.3	Field: Diagnostics and therapeutics.

 

		2.4	First Commercial Sale: The
earliest date of Sale of a Licensed Product by Assembly or any of its Sublicensees. The transfer of Licensed Products by Assembly
or its Sublicensees strictly for their own laboratory and clinical research and development purposes or beta-testing does not constitute
a First Commercial Sale for the purposes of this Agreement, provided that Assembly or its Sublicensees receive no payment or other
compensation or value for such Licensed Product in excess of the fully burdened (i.e., direct and indirect) costs of producing
and transporting such materials.

 

		2.5	Licensed Product: Any product:
(i) the making, using or selling of which, absent the license granted hereunder, would infringe one or more pending or issued Valid
Claims (without giving effect to any safe harbor from infringement under 35 U.S.C. 271 (e)(1)); or (ii) that is made by, uses,
or is used by a process that, absent the license granted hereunder, would infringe one or more pending or issued Valid Claims.

 

		2.6	Net Sales: The fair market
cash value of all value, compensation, and payments received from the Sale of Licensed Products, less the following:

 

		2.6.1	Trade, quantity, and cash rebates on Licensed Products actually provided to third parties;

 

		2.6.2	Credits, allowances, or refunds, not to exceed the original invoice amount, for actual claims,
damaged goods, rejections, or returns of Licensed Products; and

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		2.6.3	Excise, sale, use, value added, or other taxes, other than income taxes, that are included in the
amounts received and that are paid by Assembly or Sublicensees for Licensed Products.

 

In the event that a Licensed
Product is bundled or integrated with one or more other products (such Licensed Product together with such other product(s), a
“Bundled Product”), Net Sales will be calculated on the basis of the total invoice price of the Bundled Product multiplied
by a fraction, the numerator of which will be the list price of the Licensed Product and the denominator of which will be an amount
equal to the aggregate of all list prices of the Licensed Product and all other products in the applicable Bundled Product. In
the event that there is Bundled Product and the list price of the Licensed Product and each other product in the applicable Bundled
Product cannot be determined, then (a) the parties will negotiate in good faith to agree in writing on the relative value of the
Licensed Product and each other product in the applicable Bundled Product, which determination will be based upon sales prices
for comparable products or processes, and (b) such relative value(s) will be used in calculating Net Sales. The deductions set
forth in clauses 2.6.1 through 2.6.3 will be applied to the total invoice price for the applicable Bundled Product prior to calculating
Net Sales of the Licensed Product.

 

		2.7	Party: Individually, IURTC or Assembly. Collectively, IURTC and Assembly may be referred
to as the “Parties.”

 

		2.8 	Patent Rights:

 

		2.8.1	The patent applications (including provisionals) filed or to be filed as listed on Exhibit A;

 

		2.8.2	All U.S. patent applications directly or indirectly claiming priority to the above-referenced patents
or applications, including divisionals, continuations, and claims in continuations-in-part applications that are entitled to the
priority filing date of any of the above;

 

		2.8.3	Foreign equivalent applications;

 

		2.8.4	Patents issuing from the above applications;

 

		2.8.5	Reissues, re-examinations and extensions of the above, supplementary protection certificates and
any patents issuing therefrom; and

 

		2.8.6	Any of the foregoing during reissue, re-examination, or post grant review proceedings.

 

		2.9	The terms Sale,
Sold, Sell:
Any transaction in which a Licensed Product is exchanged or transferred for value, including without limitation sales, leases,
licenses, rentals, provision of services through the use of Licensed Products, and other modes of distribution or transfer of a
Licensed Product or its beneficial use. A Sale of a Licensed Product will be deemed to have been made when Assembly or its Sublicensee
(or anyone acting on behalf of or for the benefit of Assembly or any of its Sublicensees) first invoices, ships, or receives value
for a Licensed Product, whichever is earliest.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		2.10	Sublicensee: A non-Affiliate
third party to whom Assembly has granted a Sublicense pursuant to and in accordance with Article 3 of this Agreement. “Sublicense”
is an arms-length agreement in which Assembly:

 

		2.10.1	Grants or sublicenses any of the rights granted hereunder;

 

		2.10.2	Agrees not to assert the Patent Rights or agrees not to sue, prevent, or seek a legal remedy for
the practice of same; or

 

 

		2.10.3	Has agreed to do any of the foregoing, including but not limited to licenses, option agreements,
right of first refusal agreements, standstill agreements, settlement agreements, co-development agreements, co-promotion agreements,
joint venture agreements, or other agreements.

 

		2.11	Sublicensing Revenue: The
fair market cash value of any and all non-running royalty consideration received by Assembly from Sublicensees under or otherwise
in connection with its Sublicenses, including without limitation license issue fees, option fees and other licensing fees, milestone
payments, minimum annual royalties, equity or other payments of any kind whatsoever (but excluding running royalties paid for Net
Sales of Licensed Products by Sublicensees), irrespective of whether such revenues are received in the form of cash, barter, credit,
stock, warrants, release from debt, goods or services, licenses back, a premium on the sale of equity (i.e., payments for equity
that exceed the pre-Sublicense value); provided, however, that Sublicensing Revenue will not include engineering charges, co-development
payments or amounts received specifically in exchange for research and development, amounts received in exchange for equity, payments
made for services and materials Assembly provides to Sublicensees, or other amounts received not relating to Licensed Products
or Patent Rights.

 

“Supporting IP” means
know-how, trade secrets, patents, and other forms of intellectual property and proprietary information owned, licensed to, or otherwise
controlled by Assembly (other than through this Agreement), including without limitation technical data, clinical data, business
information, follow-on inventions and improvements which are provided for use by a Sublicensee in the course of developing, testing,
marketing, making, using, selling or otherwise exploiting Licensed Products.

 

		2.12 	Term:  Commencing on the Effective Date and continuing until the expiration of the last to expire of the
patents in the Patent Rights unless earlier terminated in accordance with this Agreement.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		2.13	Territory: Anywhere in the
world, except those countries to which export of technology or goods is prohibited by applicable United States export control laws
or regulations.

 

		2.14	Valid Claim:  A claim of a pending Patent Rights patent application or of an issued and unexpired Patent Rights
patent, in each case that has not lapsed or been held revoked, invalid or unenforceable by a court or other governmental agency
of competent jurisdiction in a decision or order that is not subject to appeal, provided that if a pending patent application has
not issued within five (5) years from receiving a first US office action or foreign equivalent, the claims of such patent application
will no longer be considered Valid Claims hereunder.

 

		3	Grant: Subject to the terms
and conditions of this Agreement and in consideration of Assembly’s satisfaction of its obligations hereunder, IURTC hereby
grants to Assembly and Assembly hereby accepts, the following license during the Term in the Territory:

 

		3.1	An exclusive license to IURTC’s and the Institutions’ ownership rights in the Patent
Rights, to make, have made, use, offer for sale, sell, and import Licensed Products in the Field.

 

		3.2	The rights licensed to Assembly hereunder, except for the right to grant Sublicenses, may be extended
to Affiliates provided that each such Affiliate first agrees in a written agreement to be bound by the terms and conditions of
this Agreement as Assembly is bound, and such agreement: (a) names IURTC as a third party beneficiary; (b) terminates upon termination
of this Agreement; and (c) is not transferable. Any Affiliate that desires to exercise any of the rights granted hereunder will
enter into such written agreement with Assembly prior to exercising such rights. Assembly will deliver to IURTC a copy of said
agreement and any amendment thereto within thirty (30) days of each execution. Assembly agrees to be fully responsible for the
performance of such Affiliates and liable for their compliance herewith.

 

		3.3	Assembly may grant Sublicenses to non-Affiliate third parties under this Agreement. Only Assembly,
and not its Affiliates or Sublicensees, is permitted to grant Sublicenses.

 

		3.3.1	Any Sublicense granted by Assembly under this Agreement will be consistent with the terms and conditions
of this Agreement and will:

 

		3.3.1.1	Contain the terms and conditions set forth in definition 2.6 and the definitions it references,
and in paragraphs 3.4, 3.6, 3.7, 6.3, 8.5, 8.6, 9.7, 16.6, and 16.8, and in Article 7 modified only to indicate that Sublicensee
is under the same obligations as Assembly;

 

		3.3.1.2	Contain the terms and conditions set forth in paragraph 6.2 and the definitions it references modified
only to indicate that the Sublicensee is obligated to Assembly as Assembly is to IURTC; and

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		3.3.1.3	Contain the terms and conditions set forth in Articles 11, 12, and paragraph 7.5, modified only
to indicate that the Sublicensee is obligated to IURTC and IU as Assembly is obligated to IURTC and IU hereunder.

 

		3.3.2	If Assembly voluntarily enters bankruptcy or receivership, or if an involuntary bankruptcy action
is filed against Assembly and not dismissed within ninety (90) days, then upon notice from IURTC, royalties based on Sublicensee’s
Net Sales and Sublicensing Revenue then or thereafter due to Assembly will become directly due and owing to IURTC for the account
of Assembly. IURTC will remit to Assembly any amounts received that exceed the sum actually owed by Assembly to IURTC.

 

		3.3.3	Within thirty (30) days of the effective date of any Sublicense, Assembly will provide IURTC a
complete copy of the Sublicense and all exhibits thereto, along with Assembly’s representation and warranty that no prior,
contemporaneous, planned, or proposed contractual relationships between Assembly and Sublicensee contain consideration to Assembly
reasonably attributable to the sublicensed rights. If the original Sublicense is written in a language other than English, the
copy of the Sublicense and all exhibits thereto will be accompanied by a complete translation written in English. Assembly represents
and warrants that such translation will be a true and accurate translation of the Sublicense and its exhibits.

 

		3.3.4	Assembly agrees to be fully responsible for the performance of its Sublicensees hereunder. Any
act or omission by a Sublicensee that would be a breach of this Agreement if imputed to Assembly will be deemed to be a breach
by Assembly of this Agreement.

 

		3.4	IURTC and the Institutions retain the right to practice under the Patent Rights for non-commercial
educational and research purposes and permit other universities and non-profit research institutes to do the same for non-commercial
educational and research purposes. Assembly may not in any way restrict the rights of IU, other universities or non-profit research
institutions, or their faculty, staff, students, or employees from publishing the results of their research related to the Patent
Rights.

 

		3.5	This Agreement provides Assembly and Sublicensees no ownership rights of any kind in the Patent
Rights. All ownership rights remain the property of the Institutions and/or IURTC.

 

		3.6	In accordance with 35 U.S.C. §§ 200-212, 37 C.F.R. Part 401, and in the relevant government
research contracts with the Institutions, the United States government retains certain rights to inventions arising from federally
supported research or development. Under these laws and implementing regulations, the government may impose requirements on such
inventions. To the extent applicable, such rights and requirements include without limitation (i) the grant of a nonexclusive,
nontransferable, irrevocable, paid-up license to practice or have practiced for or on behalf of the government any of the Patent
Rights throughout the world, and (ii) the requirement that Licensed Products used or sold in the U.S. will be manufactured substantially
in the U.S. The rights granted in this Agreement are expressly made subject to these laws and regulations as they may be amended
from time to time. Assembly will be required to abide by all applicable laws and regulations. IURTC agrees to cooperate with Assembly
in connection with attempting to secure any waiver of any obligations under 35 U.S.C. §204.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		3.7	Assembly will mark all Licensed Products made or sold in the United States in accordance with 35
U.S.C. §287(a), and will mark all Licensed Products made or sold in other countries in accordance with the laws and regulation
then applicable in each such country.

 

		4	Diligence: Assembly agrees
to use diligent efforts to develop, manufacture, promote and sell Licensed Products.

 

		4.1	Within ninety (90) days of the Effective Date, Assembly will provide IURTC with a Development Plan.
Assembly will update the Development Plan to reflect the next year’s plan and report progress for the past year against the
Development Plan in writing to IURTC no later than January 31 of each subsequent year during the Term. The updates and reports
will summarize in reasonable detail the progress achieved and any problems encountered in the development, evaluation, testing,
manufacture, initial sale, and/or initial marketing of each Licensed Product. Upon reasonable request by IURTC, Assembly will consult
with IURTC about tasks, schedules, and progress.

 

		4.2	In partial satisfaction of its obligations under this Article 4, Assembly will achieve the following
commercial goals by the dates set forth below:

 

		4.2.1	Preparation of a preclinical development plan within three (3) months of the Effective Date;

 

		4.2.2	Preparation of a clinical development plan within six (6) months of the Effective Date;

 

		4.2.3	Negotiation of Series A financing of at least seven million dollars ($7,000,000) within twenty-four
(24) months of the Effective Date;

 

Assembly will provide IURTC with
commercially reasonable evidence of Assembly’s achievement of each of the above-defined commercial goals within thirty (30)
days after the corresponding date.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		5	Financial Consideration:

 

		5.1	Assembly will pay to IURTC a royalty on Net Sales by Assembly and Sublicensees per calendar year
as follows:

 

	Net Sales	 	Royalty	 
	Less than or equal to [*] dollars ($[*])	 	 	0.5	%
	Greater than [*] dollars ($[*]) and up to [*] dollars ($[*])	 	 	[*]	%
	Greater than [*] dollars ($[*]) and up to [*] dollars ($[*])	 	 	[*]	%
	Greater than [*] dollars ($[*])	 	 	1.75	%

 

The royalty will apply to all
Licensed Products made during the Term, though such products may be Sold after the Term. No multiple royalties will be payable
because the Licensed Product, or the manufacture or use thereof, are or will be covered by more than one of the patent applications
or patents in the Patent Rights. Royalties will be paid to IURTC within thirty (30) days of the end of each fiscal quarter in which
the Net Sales occurred.

 

		5.2	Beginning with the 2014 calendar year, Assembly will pay to IURTC an annual diligence maintenance
fee according to the table below:

 

	calendar year	 	diligence maintenance fee	 
	2014	 	$	25,000	 
	2015	 	$	50,000	 
	2016 through the year in which First Commercial Sale occurs	 	$	75,000	 
	 the year following First Commercial Sale and all subsequent years	 	$	100,000	 

 

The diligence maintenance fee
will be paid by Assembly to IURTC within thirty (30) days after the end of the calendar year for which it is due. For each calendar
year, payments received by IURTC under paragraphs 5.1, 5.3, and 5.4 in such calendar year will be fully creditable against that
year’s diligence maintenance fee.

 

		5.3	Assembly will pay to IURTC a percentage of Sublicensing Revenue according to the table below:

 

	effective date of Sublicense	 	percentage of Sublicensing Revenue
	Prior to beginning phase 1 clinical trials	 	[*]%
	On or after beginning phase 1 clinical trials, but before beginning phase 2 clinical trials	 	[*]%
	On or after beginning phase 2 clinical trials	 	[*]%

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.

 

    	 

    	 

    

  

IURTC Agreement Number ASS-0313-BB

 

If a Sublicense is part of a
transaction in which Assembly also conveys rights to Supporting IP, then Assembly will propose in good faith by written notice
to IURTC a basis for allocation of the consideration received by Assembly for such transaction between the Patent Rights and the
Supporting IP based on the relative value to be attributed to the Sublicense as part of the overall transaction. Such notice will
describe in reasonable detail the rationale for such allocation. If IURTC in its good faith, reasonable discretion agrees with
the proposal, the amount payable to IURTC under this Section 5.3 with respect to Sublicensing Revenue received in connection
with such transaction will be determined by the following equation:

 

(x)(y)(z%)
= A

 

where:

 

(x) is the
relative value (expressed as a percentage) attributed to the Patent Rights;

(y) is the
Sublicensing Revenue total received by Assembly;

(z) is the applicable rate as set forth in the table immediately above in this Section  5.3;
and

A is the
amount to be paid to IURTC

 

IURTC’s percentage of Sublicensing
Revenue will be paid by Assembly to IURTC within thirty (30) days of the end of each fiscal quarter in which Assembly received
the Sublicensing Revenue.

 

		5.4	Assembly will pay IURTC the following performance milestone payments:

 

		5.4.1	$[*] due within thirty (30) days of completion of the first phase 1 clinical trial;

 

		5.4.2	$[*] due within 30 days of completion of the first phase 2 clinical trial;

 

		5.4.3	$[*] due within 30 days of completion of the first phase 3 clinical trial;

 

		5.4.4	$[*] upon submission of the first application for regulatory approval of the first licensed product
in a major market country (United States, Japan, France, Germany, United Kingdom, Italy); and

 

		5.4.5	$[*] upon the first regulatory approval of the first licensed product in a major market country
(United States, Japan, France, Germany, United Kingdom, Italy).

 

Assembly will promptly notify
IURTC of the achievement of a performance milestone. Should Assembly receive Sublicensing Revenue for a Sublicensee’s achievement
of a particular performance milestone listed above, Assembly will pay to IURTC the greater of the payment listed above or IURTC’s
percentage of Sublicensing Revenue under paragraph 5.3, it being understood that Assembly will not be required to pay both. Performance
milestone payments will be paid by Assembly to IURTC within thirty (30) days of the end of each fiscal quarter in which the performance
milestone is achieved.

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		5.5	If Assembly or an Affiliate or Sublicensee is required to make any payment (including, but not
limited to, royalties or other license fees) to one or more third parties to obtain a patent license in the absence of which it
could not legally make, import, use, sell, or offer for sale Licensed Product in any country, and Assembly provides IURTC with
reasonably satisfactory evidence of such third-party payments, such third-party payments will be fully creditable against royalties
owed to IURTC hereunder, provided that in no one year will the aggregate of all such expenses be credited against more than [*]
percent ([*]%) of royalty payments that would otherwise be due to IURTC. Any greater amount of such expenses may be carried over
and credited against royalties owed in future years, subject in every case to the [*]% annual cap for that year.

 

		5.6	Assembly will transfer to IURTC five percent (5%) of the outstanding equity in Assembly in existence
as of the Effective Date. The transfer of such equity to IURTC will be made in accordance with the terms and conditions of an equity
subscription agreement having commercially reasonable terms and conditions, the drafting of which will be the responsibility of
Assembly, to be executed concurrently with this Agreement. The terms of such subscription agreement will be no less favorable to
IURTC than the terms under which the most recent other common equity holder obtained equity. Said equity subscription agreement
will contain provisions for, among others, (i) non-dilution of IURTC equity until the total Assembly paid-in capital exceeds five
hundred thousand dollars ($500,000), such equity to be subject to dilution thereafter at the same rate, and in the same manner
as the other equity holders; (ii) the right of first refusal for IURTC or its affiliates to purchase IURTC’s pro rata share
of all (or any part) of any new securities that Assembly may from time-to-time issue after the Effective Date; and (iii) the right
for IURTC to have its shares registered by “piggyback” on any public offering (other than Assembly’s initial
public offering) which may be made, subject only to “lock-up” provisions that are no more restrictive than those binding
any other comparable pre-offering equity holder. Such equity transfer will in no event be subject to revocation, refund, or nullification
in any instance and for any reason.

 

		6	Payment and Reports:

 

		6.1	All dollar ($) amounts referred to in this Agreement are expressed in United States dollars. All
payments to IURTC will be made in U.S. dollars by check or electronic transfer payable to “Indiana University Research and
Technology Corporation.”

 

		6.1.1	Checks will be sent to:

 

Indiana University Research and Technology Corporation

IU Innovation Center

351 W. 10th St.

Indianapolis, IN  46202-4118

 

			The IURTC Agreement Number ASS-0313-BB and purpose of the payment will be included with the check.

			

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

6.1.2       
Wire transfer payments will be sent to:

 

For wire transfers from a U.S.
bank:

[*]

 

For wire transfers from an international bank:

[*]

 

The IURTC Agreement Number ASS-0313-BB
and purpose of the payment will be included with the wire transfer information. Assembly will add wire transfer fees to the payment.

 

6.1.3       
Any amounts due in currency other than U.S. dollars will be converted to U.S. dollars at the conversion rate for the foreign
currency as published in the Eastern edition of The Wall Street Journal as of the last business day in the U.S. of the applicable
payment period.

 

		6.2	Assembly will deliver to IURTC, with each payment made under paragraph 6.1, a written report describing
the purpose of the payment and setting forth the calculation of the payment being made to IURTC, including the following:

 

6.2.1       
For payments under paragraph 5.1, calculations of payments due in connection with Net Sales by Assembly, by each Affiliate,
and by each Sublicensee on a country-by-country basis: the number of Licensed Products Sold; gross receipts for Sales; deductions
as described in paragraph 2.6, giving totals by each type; and Net Sales.

 

6.2.2       
For payments under paragraph 5.1 and 5.4, the serial numbers of the patent applications and patents in the Patent Rights
that in Assembly’s good-faith determination cover each Licensed Product.

 

6.2.3       
For payments under paragraph 5.2, a description and list of amounts credited against the diligence maintenance fee.

 

6.2.4       
For payments under paragraph 5.3, the name of the Sublicensee paying the Sublicensing Revenue to Assembly.

 

		6.3	Assembly will maintain complete and accurate books of account and records that would enable an
independent auditor to verify the amounts paid under this Agreement, and for otherwise verifying its performance hereunder. The
books and records will be maintained for three (3) years following the quarter after submission of the reports required by this
Article. Upon reasonable notice by IURTC, Assembly will give IURTC (or auditors or inspectors appointed by and representing IURTC)
access to all books and records for Sales of Licensed Products to conduct, at IURTC’s expense, an audit or review of those
books and records. This access will be available no more than once every calendar year, during regular business hours, during the
Term and for the three calendar years following the year in which termination or expiration occurs. Any underpayment will be promptly
paid, with interest as set forth in paragraph 6.4, to IURTC. Any overpayment will be granted to Assembly as a credit against future
payment. If the audit or review reports an underpayment by five percent (5%) or more for any fiscal quarter, Assembly will promptly
reimburse IURTC for the costs and expenses of the accountants and auditors in connection with the review and audit.

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		6.4	The past patenting costs in paragraph 9.3 are due within fifteen (15) days after the Effective
Date, and if such payments are not timely received, this Agreement will be null, void, and without effect. All other payments not
paid by Assembly to IURTC when due will accrue interest, from the due date until payment is made, at an annual rate equal to two
percent (2%) above the prime rate published in the Eastern edition of The Wall Street Journal at the beginning of the period of
arrearage (or the maximum allowed by law, if less than the amount specified herein).

 

		6.5	Any taxes required to be withheld by Assembly from payments otherwise due under Article 5 in order
to comply with the tax laws of the United States or any other country will be promptly paid by Assembly to the appropriate tax
authorities, and Assembly will furnish IURTC with original tax receipts or other appropriate evidence issued by the appropriate
tax authorities sufficient to enable IURTC to support a claim for income tax credit or refund in respect to any sum so withheld.

 

		7	Confidentiality:

 

		7.1	The terms and conditions of Articles 4 and 5 and information exchanged between the Parties under
Articles 4, 6, and 9, as well as any information designated by a Party in any reasonable manner as confidential within a reasonable
time after it is delivered to the receiving Party, are Confidential Information.

 

		7.2	During the Term and for a period of three (3) years thereafter, the receiving Party agrees to maintain
in secrecy and not disclose to any third party any Confidential Information received, and to use reasonable measures to ensure
the confidentiality of such Confidential Information. Receiving Party will use the Confidential Information received solely as
necessary to perform its obligations and exercise its rights in accordance with ther terms and conditions of this Agreement.

 

		7.3	Confidential Information does not include information that:

 

		7.3.1	Is or becomes publicly known through no fault of the receiving Party;

 

		7.3.2	Was known to the receiving Party before disclosure by the disclosing Party as established by documentary
evidence;

 

		7.3.3	Is identical subject matter originally and independently
developed by the receiving Party’s personnel without knowledge or use of or access to any disclosing Party’s Confidential
Information as established by documentary evidence; or

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		7.3.4	Was disclosed to the receiving Party without restriction
by a third party having a right to make the disclosure.

  

		7.4	Notwithstanding the other terms of this Article 7,

 

		7.4.1	Assembly may, to the extent necessary, use Confidential Information to secure governmental approval
to clinically test or market a Licensed Product, to comply with a court order or governmental rule or regulation, or to show to
a potential or actual sublicensee, contractor, investor, acquirer or professional adviser, subject to an appropriate confidentiality
agreement (or in the case of professional advisers, ethical obligations). Assembly will, in any such use, take all reasonably available
steps to maintain confidentiality of the disclosed information and to guard against any further disclosure.

 

		7.4.2	IURTC may report consideration received under this Agreement and Assembly’s progress under
Article 4, including providing the Development Plans and reports, to the Institutions and the Inventors.

 

		7.5	Neither Party
may use the name of the other for any commercial, advertisement, or promotional purpose without the prior written consent of the
other. Assembly may not use the name of the Institutions for any commercial, advertisement, or promotional purpose without the
prior written consent of the Institutions. However, each Party may state that Assembly licensed from IURTC one or more of the patent
applications and/or patents in the Patent Rights and may further include (i) Institutions’ Inventors’ names, (ii) invention
titles and summaries, (iii) Field, and (iv) type and extent of license. The foregoing shall not restrict either Party from making
disclosures or statements as required by law or regulation.

 

		8	Representations and Warranties:

 

		8.1	IURTC represents and warrants that:

 

		8.1.1	It is a corporation organized, existing, and in good standing under the laws of the state of Indiana;

 

		8.1.2	It has the authority to enter into this Agreement and that the person signing on its behalf has
the authority to do so;

 

		8.1.3	To the best of its knowledge, it is the sole owner of the Patent Rights listed on Exhibit A
that are identified as being an “IURTC solely owned Patent Right”, and a co-owner of all other Patent Rights (in each
case, subject to any rights retained by the United States government by operation of law) and it has the authority to grant the
licenses set forth herein; and

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		8.1.4	To the best of its knowledge, as of the Effective Date of the Agreement, there are no actions,
suits or claims pending against IURTC challenging IURTC’s ownership or control of the Patent Rights licensed in this Agreement.

 

		8.2	Assembly represents and warrants that:

 

		8.2.1	It is a company duly organized, existing, and in good standing under the laws of the state of Delaware;

 

		8.2.2	The execution, delivery and performance of this Agreement have been authorized by all necessary
corporate action on the part of Assembly and that the person signing the Agreement on behalf of Assembly has the authority to do
so;

 

		8.2.3	The making, exercising of any right, or performance of any obligation under this Agreement does
not violate any separate agreement it has with a third party, and in so acting, Assembly will not breach the terms and conditions
of this Agreement or fail to comply with applicable laws, regulations, and court orders;

 

		8.2.4	It is not a party to any agreement or arrangement that would prevent it from performing its duties
and fulfilling its obligations to IURTC under this Agreement;

 

		8.2.5	It has and will maintain at the time specified in Article 12, the insurance coverage called for
in Article 12;

 

		8.2.6	It will obtain any additional licenses from any third party needed to perform and fulfill its duties
and obligations under this Agreement, including, but not limited to, the Development Plan; and

 

		8.2.7	There is no pending litigation and no threatened claims against it that could impair its ability
or capacity to perform and fulfill its duties and obligations under this Agreement, including, but not limited to, the Development
Plan.

 

		8.3	EXCEPT AS PROVIDED IN PARAGRAPH 8.1 and 8.2, THE PARTIES MAKE NO REPRESENTATIONS OR WARRANTIES,
AND EXPRESSLY DISCLAIM ALL OTHER REPRESENTATIONS AND WARRANTIES, WHETHER EXPRESS, STATUTORY, IMPLIED, OR OTHERWISE, INCLUDING:

 

		8.3.1	A warranty or representation as to the validity, scope, or efficacy of the Patent Rights;

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		8.3.2	A warranty or representation that the exercise of any rights granted in this Agreement does not
or will not infringe patents, copyrights, trademarks, trade secrets or other proprietary rights of third parties;

 

		8.3.3	A warranty or representation of operability or that development of a Licensed Product is possible;

 

		8.3.4	An obligation to bring or prosecute actions or suits against third parties for infringement of
the Patent Rights;

 

		8.3.5	A grant, by implication, estoppel, or otherwise, of any licenses or rights under patents or other
intellectual property rights of IURTC, the Institutions, or other persons, other than the rights expressly granted above to the
Patent Rights;

 

		8.3.6	Directly or indirectly operating or applying as a waiver of sovereign immunity by the state of
Indiana; or

 

		8.3.7	Imposing any obligation or any liability on any party contrary to the laws of the state of Indiana.

 

		8.4	IURTC PROVIDES THE PATENT RIGHTS “AS IS.” IURTC MAKES NO EXPRESS OR IMPLIED WARRANTIES
OF MERCHANTABILITY OR FITNESS OF THE PATENT RIGHTS OR ANY LICENSED PRODUCTS FOR ANY PURPOSE, OR THAT THE USE OF THE PATENT RIGHTS
OR ANY LICENSED PRODUCT WILL NOT INFRINGE ANY PATENT, COPYRIGHT, TRADEMARK OR OTHER RIGHTS OF THIRD PARTIES. IURTC MAKES NO REPRESENTATION
OR WARRANTY WITH RESPECT TO THE PERFORMANCE OF THE PATENT RIGHTS OR ANY LICENSED PRODUCT, INCLUDING THEIR SAFETY, EFFECTIVENESS,
OR COMMERCIAL VIABILITY. IURTC will not be liable, including to Assembly, its affiliates, successors, assigns, contractors, independent
contractors, or sublicensees, or to any third party regarding any claim arising from or relating to Assembly’s use of the
Patent Rights or from the manufacture, use, or importation of products (other than solely and exclusively resulting from any material
breach of this Agreement or gross negligence or willful misconduct by IURTC); or for any claim for loss of profits or loss or interruption
of business; or for indirect, special, exemplary, punitive, or consequential damages of any kind. The above limitations on liability
apply even if advised of the possibility of such damages.

 

		8.5	It is understood that IURTC and Assembly are subject to United States laws and regulation (including
the Arms Export Control Act, as amended, and the Export Administration Act of 1979) controlling the export of technical data, computer
software, laboratory prototypes, and other commodities, and that such obligations hereunder are contingent upon compliance with
applicable U.S. export laws and regulations. The transfer of certain technical data and commodities may require a license from
the cognizant agency of the U.S. Government and/or written assurances by Assembly that Assembly will not export data or commodities
to certain foreign countries without prior approval of such agency. IURTC does not represent that a license is not required, or
that, if required, such a license will be issued.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		8.6	It is understood that IURTC and Assembly are subject to United States and foreign laws and regulations
prohibiting bribery, including, but not limited to, the U.S. Foreign Corrupt Practices Act of 1977, as amended, and that the obligations
of IURTC and Assembly under this Agreement are contingent upon compliance with the U.S. Foreign Corrupt Practices Act. IURTC is
not obligated to take any action that it believes in good faith may cause it to be in violation of the U.S. Foreign Corrupt Practices
Act or other U.S. laws.

 

		9	Prosecution of Patent Rights:

 

		9.1	IURTC is the owner or co-owner of the Patent Rights and will have exclusive control of the preparation,
filing, prosecution, issue, and maintenance of the Patent Rights. Maintenance includes but is not limited to post-issuance proceedings
such as post-grant reviews, reissue proceedings, and re-examination proceedings. IURTC will select qualified patent counsel reasonably
acceptable to Assembly to prepare, file, prosecute and maintain the Patent Rights. IURTC will keep Assembly fully informed of patent
prosecution, will seek Assembly’s comments and suggestions prior to taking material actions for the same, and will take all
prosecution actions reasonably recommended by Assembly which would expand the scope of rights sought.

 

		9.2	IURTC will authorize Assembly to communicate directly with IURTC’s patent counsel.
All information exchanged among IURTC’s counsel, the Parties, and/or the Inventors regarding the preparation, filing,
prosecution, issue, or maintenance of the Patent Rights will be deemed Confidential Information. In addition, the Parties acknowledge
and agree that, with regard to such preparation, filing, prosecution, issue, and maintenance of the Patent Rights, the interests
of the Parties as licensor and licensee are to obtain the strongest and broadest patent protection possible, and as such, are aligned
and legal in nature. The Parties agree and acknowledge that they have not waived, and nothing in this Agreement constitutes a waiver
of, any legal privilege concerning the Patent Rights, including without limitation, privilege under the common interest doctrine
and similar or related doctrines.

 

		9.3	Assembly will reimburse IURTC within fifteen (15) days after the Effective Date for expenses incurred
prior to the Effective Date for preparing, filing, prosecuting, issuing, and maintaining the Patent Rights.

 

		9.4	During the Term, Assembly will reimburse IURTC for all reasonable and documented costs and expenses
incurred by IURTC in the preparation, filing, prosecution, issue, and maintenance of the Patent Rights within thirty (30) days
of receipt of billing invoices for such costs and expenses. Notwithstanding the foregoing:

 

		9.4.1	IURTC may, at its sole discretion, require Assembly to pay patent counsel a retainer for filing
fees prior to filing patent applications in foreign countries; and

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		9.4.2	Should Assembly become delinquent at any time for the reimbursement of patenting costs, IURTC may,
at its sole discretion, require Assembly to pay patent counsel a retainer for future expenses.

 

		9.5	IURTC will diligently prosecute and maintain the Patent Rights as long as Assembly timely satisfies
its reimbursement obligations hereunder.

 

		9.5.1	IURTC will prepare, file, and prosecute additional applications within the Patent Rights as Assembly
may reasonably request, in IURTC’s name at Assembly’s sole expense.

 

		9.5.2	IURTC may request written notice from Assembly of Assembly’s intent to satisfy its reimbursement
obligations for any particular fees or expenditures for any patent application or patent in the Patent Rights at least sixty (60)
days in advance of the date on which such expenditure is to be made or such fee is due to be paid. Assembly will respond either
by affirming its intent to satisfy its reimbursement obligations or by electing not to pay in accordance with paragraph 9.6. Should
Assembly fail to respond to IURTC’s request, IURTC may, at its sole discretion, (i) incur such fee or expenditure and Assembly
will be obligated to reimburse same; or (ii) decline to incur such fee or expenditure even if this results in the abandonment of
patent applications or patents in the Patent Rights.

 

		9.6	If Assembly elects not to pay for any fees or expenditures for any Patent Rights, Assembly will
give IURTC written notice of such election at least sixty (60) days in advance of the date on which such expenditure is to be made
or such fee is due to be paid. Upon IURTC’s receipt of such notice, the license granted to Assembly for those patent applications
or patents in the Patent Rights will terminate, and IURTC will be free, at IURTC’s sole discretion and without any further
obligation to Assembly, to continue prosecution and maintenance for IURTC’s sole use and benefit, or to abandon the patent
applications or patents.

 

		9.7	Assembly and IURTC agree that the Patent Rights will be extended by all means provided by law or
regulation, including without limitation extensions provided under United States law at 35 U.S.C. §154(b) and 156. Assembly
hereby agrees to provide IURTC with all necessary assistance in securing such extension, including without limitation, providing
all information regarding applications for regulatory approval, approvals granted, and the timing of same. Assembly acknowledges
that extension under 35 U.S.C. §156 must be applied for within sixty (60) days of the date that a Licensed Product receives
permission under the provision of law under which the applicable regulatory review period occurred for commercial marketing or
use, and that Assembly’s failure to promptly provide the necessary information or assistance to IURTC during such sixty day
period will cause serious injury to IURTC, for which Assembly will be liable at law.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		10	Third Party Infringement:

 

		10.1	The Parties will give prompt written notice to each other of any known or suspected infringement
of the Patent Rights by a third party. Assembly at its sole expense has the right to attempt to abate any infringement of the Patent
Rights in the Field. Assembly may initiate and prosecute actions against third parties for infringement and/or unfair trade practices,
and if required by law, IURTC will permit any action to be brought in its name, including being joined as a party-plaintiff. Assembly
will consult with IURTC prior to and in conjunction with all significant issues, will keep IURTC informed of all proceedings, and
will provide copies to IURTC of all pleadings, legal analyses, and other papers related to such actions. IURTC will provide reasonable
assistance to Assembly in prosecuting any such actions and will be compensated by Assembly for its reasonable out-of-pocket expenses,
which IURTC will only be required to expend if Assembly has approved same for reimbursement. Absent IURTC’s prior written
consent, Assembly will not settle or compromise any claim or action in a manner that grants rights or concessions to a third party
to the Patent Rights.

 

		10.2	Any damages paid (including without limitation statutory damages, compensatory damages, lost profits
damages, exemplary damages, increased damages, and awards of costs and attorney fees) will first be applied to reimbursement of
Assembly’s reasonable costs, expenses, and legal fees, including amounts Assembly has reimbursed to IURTC. Assembly will
retain the remaining balance of such damages, subject to payment to IURTC of an amount based upon a reasonable approximation of
the royalties and other amounts that Assembly would have paid to IURTC if Assembly had sold the infringing products rather than
the infringer. Any special or punitive damages will be distributed [*] percent ([*]%) to Assembly and [*] percent ([*]%) to IURTC.

 

		10.3	If Assembly fails or declines to take any action under paragraph 10.1 within sixty (60) days after
learning of third party infringement or unfair trade practices, IURTC will have the right, but not the obligation, to take
appropriate actions against any such third party at its sole expense and to retain all recovered damages. In such instances, Assembly
will cooperate as requested by IURTC, and will be compensated by IURTC for its reasonable out-of-pocket expenses, which Assembly
will only be required to expend if IURTC has approved same for reimbursement.

 

		10.4	Assembly may offset a total of [*] percent ([*]%) of any expenses incurred under this Article 10
against any payments due to IURTC under Article 5, provided that in no event will such payments under Article 5, when aggregated
with any other offsets and credits allowed under this Agreement, be reduced by more than [*] percent ([*]%) in any reporting period.

 

		11	Indemnification:

 

		11.1	Assembly will indemnify, defend, and hold harmless IURTC, the Institutions, their respective Board
of Directors, trustees, employees, the Institutions’s faculty, staff, employees, students, successors, assigns, independent
contractors, and agents (collectively, “IURTC Indemnitees”) from and against any and all judgments, liabilities, losses,
or damages, (including all attorney fees and costs incurred by IURTC Indemnitees) (collectively, “Losses”) in connection
with any actions or claims brought by any third party arising out of, relating to, or incidental to the exercise of any rights
or breach of any term or condition under this Agreement by Assembly or its Affiliates, successors or assigns, or Sublicensees (provided,
however, that Assembly will have no obligation pursuant to the foregoing with respect to any Losses that result soley and exclusively
from the gross negligence or willful misconduct of any IURTC Indemnitee), including but not limited to:

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		11.1.1	The use of any Patent Rights in the design, development, production, manufacture, sale or offer
for sale, use, importation, lease, marketing or promotion of any Licensed Product;

 

		11.1.2	Injury or death to any person, damage to property, or any injury to business, including, but not
limited to, business interruption or damage to reputation, arising out of, relating to, or incidental to the use of the Patent
Rights or a Licensed Product; and

 

		11.1.3	Any third party claim that any use or licensing of the Patent Rights or development, provision,
or use of Licensed Products violates or infringes a third party’s intellectual property rights.

 

		11.2	Assembly at its sole expense will defend third party claims. Assembly will have the right to conduct
the defense of such actions. Assembly will consult with IURTC prior to and in conjunction with all significant issues, will keep
IURTC informed of all proceedings, and will provide copies to IURTC of all pleadings, legal analyses, and other papers related
to such actions. IURTC will provide reasonable assistance to Assembly in defending any such actions and IURTC Indemnitees may be
represented by counsel of its choosing at its expense. Assembly will not settle or compromise any claim or action in a manner that
imposes restrictions or obligations on IURTC Indemnitees or requires any financial payment or admission of liability by IURTC Indemnitees.

 

		11.3	If Assembly fails to defend a claim or action for which it is required to provided indemnification
under this Article 11 within twenty (20) days of learning of the same, in addition to and not in lieu of other rights and remedies,
IURTC may assume the defense for the account of and at the risk of Assembly, and any resulting liability, including attorney fees,
will be deemed conclusively to be a liability of Assembly. Assembly’s failure or refusal to act is a material breach of this
Agreement. If it is determined by a court of competent jurisdiction that such claim is not within Assembly’s indemnification
obligations under this Article 11 the foregoing will not apply, Assembly’s failure or refusal to act will not be deemed a
material breach, and any termination will be reversed.

  

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		12	Insurance:

 

		12.1	Assembly will at all times comply, through insurance, with all statutory workers’ compensation
and employers’ liability requirements covering all employees with respect to activities undertaken in performance of this
Agreement.

 

		12.2	In addition to the foregoing, Assembly and Sublicensees will obtain and maintain commercial general
liability insurance with a reputable and financially secure insurance carrier prior to making, using, importing, offering to sell,
or selling any Licensed Product, or engaging in any other act involving any Licensed Product or the Patent Rights, if such act
could possibly create risk of a claim against IURTC Indemnitees for personal injury or property damage.

 

		12.2.1	The insurance will identify IURTC as an additional insured and will provide that the carrier will
notify IURTC in writing at least thirty (30) days prior to cancellation or material change in coverage.

 

		12.2.2	The insurance will include coverage for product liability with a minimum of two million dollars
($2,000,000) per occurrence and five million dollars ($5,000,000) annual aggregate, coverage for contractual liability, and all
other coverages standard for such policies.

 

		12.2.3	Insurance policies purchased to comply with this Article will be kept in force for at least five
(5) years after the last Sale of Licensed Product.

 

		12.3	At IURTC’s request, such request to be made no more than annually, Assembly will provide
IURTC with a certificate of insurance and notices of subsequent renewals for its insurance and that of any Sublicensee.

 

		12.4	The specified minimum coverages and other provisions of this Article 12 do not constitute a limitation
on Assembly’s obligation to indemnify the IURTC Indemnitees under this Agreement.

 

		13	Termination:

 

		13.1	Assembly may terminate this Agreement with or without cause on ninety (90) days advance written
notice to IURTC. The license rights granted in Article 3 will terminate and all rights granted will automatically revert to IURTC
at the end of the 90-day period.

 

		13.2	IURTC may terminate this Agreement on sixty (60) days advance written notice to Assembly upon Assembly’s
material breach of the Agreement. The termination becomes effective at the end of the 60-day period unless Assembly has fully cured
the breach within that time. A material breach includes, but is not limited to, the following:

 

		13.2.1	Failure to timely pay any fee, royalty, or other payment required, including but not limited to
those due under Article 5, paragraph 6.3, Article 9, or paragraph 10.2, and including any interest on late payments under paragraph
6.4;

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		13.2.2	Failure to timely provide reports or notices, including
but not limited to those due under paragraphs 3.2, 3.3, 4.1, 6.2, or 14.1;

 

		13.2.3	Failure to keep accurate and completed books and records
under paragraph 6.3;

 

		13.2.4	Failure to obtain, maintain, or timely report levels
of insurance under Article 12;

 

		13.2.5	Failure to include all required terms in sublicenses,
or inclusion of any prohibited terms under paragraph 3.3; and

 

		13.2.6	Failure to indemnify IURTC Indemnitees or properly inform
or involve IURTC under Article 11.

 

		13.3	Assembly further agrees that IURTC, at its sole discretion, may immediately terminate the Agreement
by means of a written notice to Assembly in the event that Assembly makes an assignment for the benefit of its creditors, or in
the event that Assembly voluntarily files for bankruptcy or in the event an involuntary bankruptcy action is filed against Assembly
and not dismissed within ninety (90) days. Assembly will promptly inform IURTC of its intention to file a voluntary petition in
bankruptcy or of another’s communicated intention to file a voluntary petition in bankruptcy.

 

		13.4	As of the date of termination of this Agreement by either Party for any reason pursuant to the
terms herein, including expiration of the Term, all license rights granted to Assembly, including to all Affiliates, will terminate
and all rights granted will automatically revert to IURTC. Assembly’s obligations to pay fees, royalties, or other payments
and patent expenses accruing prior to termination will survive termination.

 

		13.5	Upon termination of this Agreement, Assembly will promptly notify its Sublicensees of such termination.
Any rights previously granted by Assembly under any Sublicense hereunder will be automatically revoked thirty (30) days following
the effective date of termination of this Agreement. However, Sublicensees have the right to enter into a written license agreement
with IURTC before their Sublicense is revoked, through which such Sublicensee will become bound to IURTC on substantially the same
terms and conditions (including financial terms) as it was bound to Assembly under the Sublicense, but only to the extent that
each financial term is no less favorable to IURTC than those set forth in Article 5 and paragraphs 9.3 and 9.4, and provided that
the Sublicense does not impose any obligations on IURTC in excess of those imposed under this Agreement. If any Sublicensee desires
to enter into such a license agreement, it will be wholly the responsibility of that Sublicensee to notify IURTC of such desire
within thirty (30) days after the effective date of termination of this Agreement. IURTC hereby agrees to enter into such written
license agreement, with modifications as is reasonably necessary to accommodate the functional and structural differences between
Assembly and IURTC. Failure of a Sublicensee to timely enter into such a license agreement will automatically result in the termination
of the Sublicense and all rights granted thereunder.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		13.6	All representations, warranties, covenants, and agreements made herein that, by their express terms
or by implication, are to be performed after the expiration or termination of this Agreement, or are prospective in nature, will
survive such expiration and/or termination, as the case may be. This will include, but not be limited to, the provisions in Articles
5, 6, 7, 8, 11, 12, 13, 14, and 16.

 

		13.7	Assembly will promptly notify IURTC of the termination of any agreement or grant to an Affiliate
under paragraph 3.2 or to a Sublicensee under paragraph 3.3.

 

		14	Assignment of the Agreement:

 

		14.1	The Agreement, in whole or in part, will not be assigned by either Party to any third party without
the written consent of the non-assigning Party. However, Assembly may assign the entire Agreement to a third party that acquires
substantially all of Assembly’s business, equity or assets through merger, sale, acquisition, or other similar transaction,
provided that:

 

		14.1.1	Assembly is not in breach of the Agreement in any respect; and

 

		14.1.2	Assembly demonstrates to IURTC’s satisfaction, not to be unreasonably withheld, that the
successor has or is likely to acquire capital and manpower resources sufficient to fulfill the obligations it is assuming hereunder;
and

 

		14.1.3	The successor agrees in writing (with a copy of such assent to IURTC within ten (10) days of the
effective date of the assignment) to assume all obligations and liabilities, including this Agreement, of Assembly to IURTC.

 

		14.2	The rights granted in this Agreement may not be encumbered, pledged, or hypothecated in any way
by Assembly or any Sublicensee, including but not limited to secure any purchase, lease, or loan.

 

		15	Notice: Any required
or permissive notice under this Agreement will be sufficient if in writing and delivered personally, by recognized national overnight
courier, or by registered or certified mail, postage prepaid and return receipt requested, to the address below and will be deemed
to have been given as of the date shown on the receipt if by certified or registered mail, or the day following dispatch if by
overnight courier.

 

If
to IURTC:

 

			Vice President

			Office of Technology Commercialization

			Attn: IURTC Agreement #ASS-0313-BB

			Indiana University Research and Technology Corporation

			351 W. 10th Street

			Indianapolis, IN 46202

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

If
to Assembly:

 

Assembly
Pharmaceuticals, Inc.

Attn:
Derek Small, Executive Chair

615 S.
Clifton Ave.

Bloomington,
IN 47401

 

		16	General Provisions:

 

		16.1	This Agreement will be construed, interpreted, and applied according to the laws of the state of
Indiana, without regard to its or any other jurisdiction’s conflicts of laws provisions. Assembly agrees that all claims,
disputes, or controversies arising under or relating to this agreement, including but not limited to those concerning the validity,
construction, or scope of any of the Patent Rights will be subject to the exclusive jurisdiction and venue of the state or Federal
District Court seated in Marion County, Indiana.

 

		16.2	This Agreement is binding on the Parties and their respective successors and assigns and inures
to the benefit of the Parties and their respective permitted successors and permitted assigns. No waiver of any breach of this
Agreement will constitute a waiver of any other breach of the same or any other provision of the Agreement, and no waiver will
be effective unless made in writing by the Party against whom the waiver is sought to be asserted. The delay or failure to assert
a right or to insist upon compliance with any terms or condition of this Agreement will not constitute a waiver of that right or
excuse a similar subsequent failure to perform any such term or condition.

 

		16.3	The Parties acknowledge that they have read this Agreement, including any Exhibits attached hereto,
in its entirety and agree that this instrument comprises the entire agreement, contract, and understanding of the Parties on the
subject matter of the Agreement. The Parties acknowledge that invoices, purchase orders, or other mechanisms for administering
any payment or obligation set forth herein will not contain terms and conditions separate from, in addition to, and/or in conflict
with the Agreement, and that any such terms, if present, will be void and without effect, and will not be enforceable by any Party.
The initial drafting of the Agreement by IURTC was for the convenience of both Parties, that the Parties had opportunity to be
advised by counsel of its choosing and as such both Parties agree the clauses will not be construed against IURTC as the drafter
should such clause become in dispute.

 

		16.4	This Agreement cannot be changed, modified, or amended except by a written instrument subscribed
by authorized representatives of the respective Parties.

 

		16.5	Neither Party is an agent or contractor of the other as a result of any transaction under this
Agreement. Neither Party may in any way pledge the other Party’s credit or incur any obligation on behalf of or bind the
other Party.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

		16.6	The provisions of this Agreement are severable in that if any provision in the Agreement is finally
determined by a court of competent jurisdiction to be invalid or unenforceable, such invalidity or non-enforceability will not
in any way affect the validity or enforceability of the remaining provisions or the validity or enforceability of such provision
in any jurisdiction where valid and enforceable. Any invalid or unenforceable provision will be reformed by the Parties to effectuate
their intent as evidenced on the Effective Date.

 

		16.7	If the performance of any obligation under this Agreement is prevented or impaired by acts of God
or natural disaster, interference by civil or military authorities, war, riot, or governmental laws or regulations, a Party will
be excused from performance so long as such cause continues to prevent or impair that Party’s performance. The Party claiming
such force majeure excuse will promptly notify the other Party of the existence of the cause and will at all times use diligent
efforts to resume and complete performance.

 

		16.8	Assembly agrees that in the event an Institution’s faculty or staff member serves Assembly
in the capacity of consultant, officer, employee, board member, advisor, or other designation, pursuant to contract or otherwise,
such Institution’s faculty or staff member is subject to compliance with Institution’s conflict of interest and conflict
of commitment policies, including the obligation to complete a disclosure therefor, will serve in his or her individual capacity,
as an independent contractor, and not as an agent or representative of IURTC or Institutions, that IURTC or Institutions exercises
no authority or control over such faculty or staff member while acting in such capacity, that IURTC or Institutions receives no
benefit from such activity, and that IURTC or Institutions assume no liability or obligation in connection with any such work or
service undertaken by such faculty or staff member. Assembly further agrees that any breach, error, or omission by an Institutions
faculty or staff member acting in the capacity set forth above in this paragraph will not be imputed or otherwise attributed to
IURTC or Institutions, and will not constitute a breach of this Agreement by IURTC.

 

		16.9	This Agreement may be executed in counterparts, each of which will be deemed an original and all
of which when taken together will be deemed one instrument.

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

Witness: The Parties have caused
this valid and binding agreement to be executed in duplicate by their duly qualified representatives as of the Effective Date.

  

	Assembly:	 	IURTC:	 
	 	 	 	 
	 	 	 	 
	Signature	 	 	 
	 	 	Marie C. Kerbeshian, Ph.D	 
	 	 	Vice President	 
	Name	 	Office of Technology Commercialization	 
	 	 	 	 
	 	 	 	 
	Title	 	Date	 
	 	 	 	 
	 	 	 	 
	Date	 	 	 

 

    	 

    	 

    

 

IURTC Agreement Number ASS-0313-BB

 

Exhibit A. Patent Rights

 

IURTC solely owned Patent Rights

 

[*]

 

[*]

 

[*]

 

[*]

 

[*]

 

[*]

 

[*]

 

[*]

 

IURTC and Institution jointly owned Patent Rights

 

[*]

 

IURTC and Levrero/Sapienza owned Patent Rights*

 

[*]

 

*IURTC does not have the right to license any ownership rights
that belong to Massimo Levrero or Sapienza, and such ownership rights are not subject to this Agreement. 

 

* [*] Confidential treatment requested; certain
information omitted and filed separately with the SEC.EX-10.1

 Exhibit 10.1 
  

 
 

 
 AGREEMENT 

FOR PURCHASE AND SALE 
 OF
ASSETS 
 BY AND BETWEEN 

FOREST OIL CORPORATION 
 As
Seller, 
 AND 
 CAMTERRA
RESOURCES PARTNERS, LTD 
 As Purchaser, 

Dated as of November 17, 2014 

 TABLE OF CONTENTS 

 

											
	 	 	 	 	 	    	 	  	PAGE	 
	 ARTICLE
	  			
				
		 	 I.        
	 	 PURCHASE AND SALE
	  	 	1	  
					
		 		 	 Section 1.1
	    	Purchase and Sale	  	 	1	  
		 		 	 Section 1.2
	    	Assets	  	 	1	  
		 		 	 Section 1.3
	    	Excluded Assets	  	 	3	  
				
		 	 II.
	 	 PURCHASE PRICE
	  	 	5	  
					
		 		 	 Section 2.1
	    	Purchase Price	  	 	5	  
		 		 	 Section 2.2
	    	Performance Deposit	  	 	5	  
		 		 	 Section 2.3
	    	Allocation of the Preliminary Purchase Price	  	 	5	  
		 		 	 Section 2.4
	    	Adjustment to Preliminary Purchase Price	  	 	5	  
		 		 	 Section 2.5
	    	Payment and Calculation of Estimated Final Purchase Price; Payment at Closing	  	 	7	  
				
		 	 III.
	 	 ASSET INSPECTION AND TITLE EXAMINATION
	  	 	8	  
					
		 		 	 Section 3.1
	    	Access to Records and Properties of Seller	  	 	8	  
		 		 	 Section 3.2
	    	On-Site Tests and Inspections	  	 	8	  
		 		 	 Section 3.3
	    	Title Matters	  	 	8	  
		 		 	 Section 3.4
	    	Defect Adjustments	  	 	11	  
		 		 	 Section 3.5
	    	Casualty Loss	  	 	13	  
		 		 	 Section 3.6
	    	 Seller’s Obligation and Identification of Additional Defective Interests
	  	 	13	  
		 		 	 Section 3.7
	    	Termination Due to Title Matters and Conditions	  	 	15	  
		 		 	 Section 3.8
	    	Title Benefits	  	 	15	  
				
		 	 IV.
	 	 SELLER’S REPRESENTATIONS AND WARRANTIES
	  	 	16	  
					
		 		 	 Section 4.1
	    	Organization, Standing and Power	  	 	16	  
		 		 	 Section 4.2
	    	Authority and Enforceability	  	 	16	  
		 		 	 Section 4.3
	    	Claims Affecting the Assets	  	 	17	  
		 		 	 Section 4.4
	    	Claims Affecting the Sale	  	 	17	  
		 		 	 Section 4.5
	    	No Demands	  	 	17	  
		 		 	 Section 4.6
	    	Taxes	  	 	17	  
		 		 	 Section 4.7
	    	Leases	  	 	17	  
		 		 	 Section 4.8
	    	Non-Foreign Representation	  	 	18	  
		 		 	 Section 4.9
	    	Commitments for Expenditures	  	 	18	  
		 		 	 Section 4.10
	    	Bankruptcy	  	 	18	  
		 		 	 Section 4.11
	    	Contracts	  	 	18	  
		 		 	 Section 4.12
	    	No Violations of Laws	  	 	18	  
		 		 	 Section 4.13
	    	Royalties	  	 	18	  
		 		 	 Section 4.14
	    	Production Allowables	  	 	18	  
		 		 	 Section 4.15
	    	Change in Operator	  	 	18	  
		 		 	 Section 4.16
	    	Payout Balances	  	 	19	  

  
 i 

											
	 	 	 	 	 	    	 	  	PAGE	 
	 ARTICLE
	  			
				
		 	 V.
	 	 PURCHASER’S REPRESENTATIONS AND WARRANTIES
	  	 	19	  
					
		 		 	 Section 5.1
	    	Organization, Standing and Power	  	 	19	  
		 		 	 Section 5.2
	    	Authority and Enforceability	  	 	19	  
		 		 	 Section 5.3
	    	Independent Evaluation	  	 	20	  
		 		 	 Section 5.4
	    	Suits Affecting the Sale	  	 	20	  
		 		 	 Section 5.5
	    	Eligibility	  	 	20	  
		 		 	 Section 5.6
	    	Financing	  	 	20	  
				
		 	 VI.
	 	 ASSUMPTION OF OBLIGATIONS AND INDEMNIFICATION
	  	 	20	  
					
		 		 	 Section 6.1
	    	Assumption of Certain Liabilities and Obligations by Purchaser	  	 	20	  
		 		 	 Section 6.2
	    	Indemnification by Purchaser	  	 	21	  
		 		 	 Section 6.3
	    	Indemnification by Seller	  	 	21	  
		 		 	 Section 6.4
	    	Interpretation	  	 	22	  
		 		 	 Section 6.5
	    	Notices	  	 	23	  
				
		 	 VII.
	 	 SELLER’S OBLIGATIONS PRIOR TO CLOSING
	  	 	24	  
					
		 		 	 Section 7.1
	    	Restrictions on Operations	  	 	24	  
		 		 	 Section 7.2
	    	Operated Assets	  	 	25	  
				
		 	 VIII.
	 	 ADDITIONAL AGREEMENTS OF THE PARTIES
	  	 	25	  
					
		 		 	 Section 8.1
	    	Government Reviews and Filings	  	 	25	  
		 		 	 Section 8.2
	    	Confidentiality	  	 	26	  
		 		 	 Section 8.3
	    	Taxes	  	 	26	  
		 		 	 Section 8.4
	    	Receipts and Credits	  	 	28	  
		 		 	 Section 8.5
	    	Suspense Accounts	  	 	29	  
		 		 	 Section 8.6
	    	Like-Kind Exchange	  	 	29	  
				
		 	 IX.
	 	 CONDITIONS TO CLOSING
	  	 	30	  
					
		 		 	 Section 9.1
	    	Seller’s Conditions	  	 	30	  
		 		 	 Section 9.2
	    	Purchaser’s Conditions	  	 	31	  
				
		 	 X.
	 	 RIGHT OF TERMINATION AND ABANDONMENT
	  	 	32	  
					
		 		 	 Section 10.1
	    	Termination	  	 	32	  
		 		 	 Section 10.1
	    	Liabilities Upon Termination	  	 	32	  
				
		 	 XI.
	 	 CLOSING MATTERS
	  	 	33	  
					
		 		 	 Section 11.1
	    	Time and Place of Closing	  	 	33	  
		 		 	 Section 11.2
	    	Closing Obligations	  	 	33	  
				
		 	 XII.      
	 	 POST-CLOSING OBLIGATIONS
	  	 	34	  
					
		 		 	 Section 12.1
	    	Post-Closing Adjustments	  	 	34	  
		 		 	 Section 12.2
	    	Files and Records	  	 	35	  
		 		 	 Section 12.3
	    	Further Assurances	  	 	35	  

  
 ii 

											
	 	  	PAGE	 
	 ARTICLE
	  			
				
		 	XIII.	  	ENVIRONMENTAL MATTERS	  	 	35	  
					
		 		  	Section 13.1	  	Purchaser Acknowledgment Concerning Possible Contamination of the Assets	  	 	35	  
		 		  	Section 13.2	  	Adverse Environmental Conditions	  	 	36	  
		 		  	Section 13.3	  	Disposal of Materials, Substances and Wastes; Compliance with Law	  	 	37	  
				
		 	XIV.	  	MISCELLANEOUS	  	 	37	  
					
		 		  	Section 14.1	  	Conduct of Business	  	 	37	  
		 		  	Section 14.2	  	Notices	  	 	37	  
		 		  	Section 14.3	  	Binding Effect	  	 	38	  
		 		  	Section 14.4	  	Counterparts	  	 	38	  
		 		  	Section 14.5	  	Expenses	  	 	38	  
		 		  	Section 14.6	  	Section Headings	  	 	39	  
		 		  	Section 14.7	  	Entire Agreement	  	 	39	  
		 		  	Section 14.8	  	Conditions	  	 	39	  
		 		  	Section 14.9	  	Governing Law	  	 	39	  
		 		  	Section 14.10	  	Assignment	  	 	39	  
		 		  	Section 14.11	  	Public Announcements	  	 	39	  
		 		  	Section 14.12	  	Notices After Closing	  	 	40	  
		 		  	Section 14.13	  	Waiver of Compliance with Bulk Transfer Laws	  	 	40	  
		 		  	Section 14.14	  	Waiver	  	 	40	  
		 		  	Section 14.15	  	Amendment	  	 	41	  
		 		  	Section 14.16	  	No Punitive and/or Consequential Damages	  	 	41	  
		 		  	Section 14.17	  	Severability	  	 	41	  
		 		  	Section 14.18	  	Certain Agreements With Debt Providers	  	 	41	  

 SCHEDULES 
  

									
	 	 	 	  	Description of Properties	  	A-1	 
		 		  	Wells	  	 	A-2	  
		 		  	Agreements	  	 	A-3	  
		 		  	Value Allocation	  	 	B   	  
		 		  	Suits and Claims	  	 	C   	  
		 		  	Gas Imbalances	  	 	D   	  
		 		  	Open and Outstanding AFE’s	  	 	E   	  
		 		  	General Assignment and Bill of Sale Form	  	 	F-1	  
		 		  	Assignment Form	  	 	F-2	  
		 		  	Environmental Conditions	  	 	G   	  
		 		  	Excluded Assets	  	 	1.3	  
		 		  	Royalties	  	 	4.13	  
		 		  	Payout Balances	  	 	4.16	  

  
 iii 

 AGREEMENT FOR PURCHASE 

AND SALE OF ASSETS 
 This
Agreement for Purchase and Sale of Assets (the “Agreement”), dated as of November 17, 2014, is made and entered into by and among Forest Oil Corporation, a New York corporation (“Seller”), and Camterra Resources Partners,
Ltd, a Texas limited partnership (“Purchaser”). 
 RECITALS 

A. Seller desires to sell to Purchaser the assets, properties and rights hereinafter described upon the terms and subject to the conditions,
exceptions and reservations hereinafter set forth; 
 B. Purchaser desires to purchase from Seller such assets, properties and rights as
hereinafter set forth upon the terms and subject to the conditions, exceptions and reservations hereinafter set forth; and 
 C. In
consideration of the premises and of the mutual promises, representations, warranties, covenants, conditions and agreements contained herein, Seller and Purchaser, intending to be legally bound by the terms hereof, agree as follows: 

ARTICLE I 
 PURCHASE AND
SALE 
 Section 1.1 Purchase and Sale. 

Subject to the provisions of this Agreement, Seller agrees to sell and convey at the Closing (as defined in Section 11.1), and Purchaser
agrees to purchase and accept at the Closing, such conveyance to be effective for all purposes as of 7:00 a.m. at the location of each of the respective Assets on October 1, 2014 (the “Effective Time”), all of the following, less and
except the Excluded Assets (as hereinafter defined), which shall be herein referred to collectively as the “Assets”. 

Section 1.2 Assets. 

The Assets shall mean the following: 

(a) All right, title and interest of Seller in and to all oil and gas leases, other similar leases, mineral interests,
royalties, and overriding royalties, whether producing or non-producing, as described on Schedule A-1 attached hereto whether such Asset is incorrectly described or inadvertently omitted (the “Leases”), and any other oil, gas or
other mineral rights and interests of any type (including without limitation, surface interests and fee lands) in, on or under or relating to the lands also described on Schedule 

  
 1 

 
A-1 (the “Land”), and including any and all right, title and interest of Seller in and to hydrocarbons (including crude oil, natural gas, casinghead gas, drip gasoline, natural
gasoline, natural gas liquids, condensate, and other hydrocarbons, whether gaseous or liquid) (collectively, the “Hydrocarbons”) and other products produced in association therewith in, on or under any of the foregoing, and all oil and gas
wells, water wells, and injection and disposal wells located on any of the foregoing, or used or useful in connection therewith, or on lands pooled or unitized therewith, including, without limitation, the wells described in Schedule A-2
attached hereto and wells inadvertently omitted therefrom (the “Wells”); 
 (b) All right, title and interest of
Seller in, to and under or derived from all presently existing or proposed unitization, pooling and communitization agreements, declarations and orders, and the properties covered and the units created or to be created thereby (including, but not
limited to, (i) all units formed or to be formed under orders, regulations, rules or other official actions of any federal, state or other governmental agency having jurisdiction, and (ii) those described in Schedule A-3 attached
hereto) to the extent that they relate to or affect any of the properties and interests of Seller described or referred to in subsection (a) of this Section 1.2 (“Unit Agreements”), or the production of Hydrocarbons and other
products produced in association therewith attributable to said properties and interests; 
 (c) Subject to any and all
applicable consents to assign and other limitations on Seller’s rights to assign, all right, title and interest of Seller in, to and under or derived from all presently existing and effective oil, gas liquids, condensate, casinghead gas and gas
sales, purchase, exchange, gathering, transportation and processing contracts, including those described in Schedule A-3 attached hereto, to the extent that they relate to any of the properties and interests of Seller described or referred to
in subsection (a) of this Section 1.2 (“Product Sales and Transportation Agreements”), operating agreements, joint venture agreements, farmout agreements, partnership agreements, settlement agreements, gas balancing agreements,
saltwater or water disposal agreements, surface agreements, division and transfer orders, and all other agreements and instruments described in Schedule A-3 attached hereto or inadvertently omitted therefrom to the extent that they relate to
any of the properties and interests of Seller described or referred to in subsection (a) of this Section 1.2 (“Operating Agreements”); 

(d) All right, title and interest of Seller in or to all personal property, fixtures, equipment leases, improvements, and other
personal property, whether real, personal, or mixed (including, but not limited to, well equipment, wellheads, casing, tubing, tanks, rods, tank batteries, boilers, buildings, pumps, motors, machinery, injection facilities, disposal facilities,
field separators and liquid extractors, compressors, pipelines, gathering systems, docking facilities, air service facilities, helicopter facilities, power lines, telephone and telegraph lines, roads, and field processing plants, field offices and
office furnishings related thereto, field office leases, equipment leases, vehicles (except those listed on Schedule 1.3), trailers and all other appurtenances thereunto belonging or attributable thereto, whether or not inventoried), (the
“Equipment”) and in and to all 

  
 2 

 
easements, permits, licenses, servitudes, rights-of-way, surface leases and other surface rights, to the extent now being used or proposed to be used in connection with the exploration,
development, operation or maintenance of the properties and interests described in subsections (a), (b) and (c) of this Section 1.2, or now being used or proposed to be used in connection with the producing, treating, processing,
storing, gathering, transporting or marketing of Hydrocarbons and other products produced in association therewith attributable to such properties or interests, and all contract rights (including rights under leases to third parties) related thereto
(the “Easements”) and in and to all natural gas, crude oil, condensate or other products produced from the properties described or referred to in subsection (a) of this Section 1.2 placed into storage or into pipelines as of the
Effective Time; 
 (e) All of Seller’s right, title and interest in and to any production imbalances relating to any of
the Leases or otherwise arising by virtue of the fact that Seller may not have taken or marketed its full share or may have taken or marketed more than its share of Hydrocarbons and other products produced in association therewith attributable to
its ownership prior to the Effective Time; 
 (f) Subject to the provisions of Section 1.3, all of Seller’s right,
title and interest in and to all causes of action, judgments, pending litigation, claims and demands set forth on Schedule C; and 

(g) Copies of all accounting records related to periods of time from and after the Effective Time, books and files relating to
any of the foregoing matters set forth in this Section 1.2 including, without limitation, all production records, operating records, lease records, well records, and division order records; prospect files; title records (including abstracts of
title, title opinions and memoranda, and title curative documents related to the Leases and Wells), contracts, electric logs, core data, pressure data, decline curves, graphical production curves, and a non-exclusive license to all geophysical data
owned by Seller (collectively, the “Records”); provided, however, that the Records shall not include payroll and personnel records nor interpreted geophysical records (but Purchaser shall be allowed to review Seller’s geophysical
interpretation subject to any restrictions contained in licenses or other agreements related to the geophysical data) and shall not include any Records that Seller is not contractually permitted to assign; and provided, further, that Seller shall be
entitled to retain copies of all accounting records and other files that Seller reasonably believes it will need access to for future audit, tax, or reporting requirements. 

Section 1.3 Excluded Assets. 

Seller shall reserve and retain all of the Excluded Assets. “Excluded Assets” shall mean: 

(a) all of Seller’s corporate minute books, accounting and financial records, and other business records that relate to
Seller’s business generally (including the ownership of the Assets); 

  
 3 

 (b) all trade credits, all accounts, suspended funds not otherwise specifically
accounted for pursuant to Section 8.5, below, receivables (including without limitation, from the results of audits, judgments, or settlements), and all other proceeds, income or revenues attributable to the Assets with respect to any period of
time prior to the Effective Time; 
 (c) all rights and interests of Seller (A) under any policy or agreement of
insurance or indemnity, (B) under any bond or (C) to any insurance or condemnation proceeds or awards arising, in each case, from acts, omissions or events, or damage to or destruction of property occurring prior to the Effective Time;

 (d) all Hydrocarbons produced and sold from the Assets with respect to all periods prior to the Effective Time; 

(e) all claims of Seller for refunds of or loss carry forwards with respect to (A) production or any other taxes
attributable to any period prior to the Effective Time, (B) income or franchise taxes or (C) any taxes attributable to the Excluded Assets; 

(f) all personal computers and associated peripherals and all radio and telephone equipment; 

(g) all of Seller’s computer software, patents, trade secrets, copyrights, names, trademarks, logos and other intellectual
property; 
 (h) all documents and instruments of Seller that may be protected by an attorney-client privilege; 

(i) all data that cannot be disclosed to Purchaser as a result of confidentiality arrangements under agreements with Third
Parties; 
 (j) all hedging transactions and gains or losses attributable to any hedging activities, whether occurring before
or after the Effective Time; 
 (k) all correspondence, reports, analyses and other documents relating to the transaction
contemplated hereby prior to the Effective Time (including without limitation, environmental reports and analyses), whether internal, with or produced by other prospective purchasers, produced by consultants or other third parties or otherwise, and

 (l) the assets and liabilities listed on Schedule 1.3. 

  
 4 

 ARTICLE II 

PURCHASE PRICE 

Section 2.1 Purchase Price. 

The aggregate purchase price payable by Purchaser to Seller for the Assets shall be One Hundred Eighty-Five Million One Hundred Thousand and
No/100 Dollars ($185,100,000.00) (the “Preliminary Purchase Price”), subject to adjustment as set forth in Section 2.4 below. 

Section 2.2 Performance Deposit. 

Upon execution of this Agreement, Purchaser shall pay to Seller by wire transfer a deposit in the amount of five percent (5%) of the
Preliminary Purchase Price (“Performance Deposit”), to be held by Seller in accordance with this Agreement. In the event that the transactions contemplated by this Agreement are consummated, the Performance Deposit shall be applied to the
Preliminary Purchase Price as set forth in Section 2.5(b) below. In the event this Agreement is terminated, the Performance Deposit plus any interest earned thereon shall be applied in accordance with the provisions of Article X. 

Section 2.3 Allocation of the Preliminary Purchase Price. 

The Preliminary Purchase Price shall be allocated among the Assets in accordance with the allocation set forth on Schedule B. Any
adjustments to the Preliminary Purchase Price under Section 2.4 shall correspondingly (as appropriate) adjust the allocations set forth on Schedule B. 

Section 2.4 Adjustment to Preliminary Purchase Price. 

The Preliminary Purchase Price shall be adjusted as follows and the resulting amount shall be herein called the “Final Purchase
Price”: 
 (a) The Preliminary Purchase Price shall be adjusted upward by the following (on a cash basis and on a sales,
not an entitlement, method of accounting): 
 (i) The amount of all capital expenditures (net to Seller’s interest) and
prepayments, cash calls, advance payments, gas transportation, take or pay payments and similar payments incurred and paid by Seller during the period from the Effective Time to the Closing Date (“Adjustment Period”) in respect of the
ownership and operation of the Assets; 
 (ii) The amount of all operating costs incurred by Seller (excluding amounts paid
in connection with the transactions contemplated by this Agreement, such as brokers’ fees) in respect of the ownership and operation of the Assets during the Adjustment Period, including, without limitation, overhead; 

(iii) The value (determined by the price most recently paid prior to the Effective Time for such oil less all applicable
deductions) of all oil in storage above the wellhead as of the Effective Time which is credited to the Assets, less applicable production taxes, royalty and other burdens on the production payable 

  
 5 

 
on such oil and subsequently paid by Seller or Purchaser, as applicable; the amount of oil in storage as of the Effective Time to be based on gauge reports for purposes of the Estimated Final
Purchase Price described in Section 2.5, below, and adjusted as necessary for the Final Settlement Statement described in Section 12.1, below, based on actual sales thereof. 

(iv) The amount of underproduced volumes of gas attributable to Seller as of the Effective Time (but only to the extent of the
difference between the volumes shown on Schedule D and the volumes resulting from corrections to Schedule D occurring prior to Closing Date for pre-Effective Time volumes), multiplied by a price of $4.00/mmbtu for such production (net
of royalties and taxes) in each case to the extent provided by existing balancing and other agreements affecting the Assets, and adjusted as necessary for the Final Settlement Statement described in Section 12.1, below, resulting from
corrections received by either party for pre-Effective Time volumes. 
 (v) Interest in an amount equal to seven percent
(7%) per annum, compounded quarterly, on an amount equal to the Preliminary Purchase Price less the Performance Deposit, computed for all periods of time from October 1, 2014 to the Closing Date during which the conditions set forth in
Sections 9.2(a) and 9.2(c) were met. 
 (vi) The amount of any Defect Adjustment which is a net increase in the value of an
Asset, as defined in Section 3.4(b). 
 (b) The Preliminary Purchase Price shall be adjusted downward by the following
(on a cash basis and on a sales, not an entitlement, method of accounting): 
 (i) Amounts received by Seller for the sale of
oil, gas, liquids or other associated minerals produced during the Adjustment Period (net of any production royalties, transportation costs, production tax, severance tax, or sales tax, paid or due from Seller thereon), and all other amounts
received by Seller relating to the ownership and operation of the Assets during the Adjustment Period including, but not limited to, amounts attributable to prepayments, cash calls, advance payments, gas transportation, take or pay payments and
similar payments; 
 (ii) Amounts received by Seller for the sale, salvage or other disposition during the Adjustment Period
of any property, equipment or rights included in the Assets without Purchaser having received full payment therefor; 
 (iii)
All amounts otherwise received by Seller and attributable to the ownership of the Assets during the Adjustment Period; 

  
 6 

 (iv) An amount equal to the Allocated Value of the Assets with respect to which
preferential purchase rights have been exercised in accordance with Section 3.6; 
 (v) The amount of
any Defect Adjustment which is a net reduction in the value of an Asset, as defined in Section 3.4(b); 

(vi) An amount equal to the value of any Casualty Loss as defined in Section 3.5; and 

(vii) The amount of overproduced volumes of gas attributable to Seller as of the Effective Time (but only to the extent of the
difference between the volumes shown on Schedule D and the volumes resulting from corrections to Schedule D occurring prior to Closing Date for pre-Effective Time volumes), multiplied by a price of $4.00/ mmbtu for such production (net
of royalties and taxes) in each case to the extent provided by existing balancing and other agreements affecting the Assets, and adjusted as necessary for the Final Settlement Statement described in Section 12.1, below, resulting from
corrections received by either party for pre-Effective Time volumes. 
 (viii) An amount equal to any adjustment set forth in
Section 13.2(b). 
 (c) It is Seller’s and Purchaser’s intent that the adjustments under this Agreement to the
Preliminary Purchase Price, and any components of such adjustments, shall not be applied or computed in a manner that results in duplicative effect. 

Section 2.5 Payment and Calculation of Estimated Final Purchase Price; Payment at Closing. 

(a) Seller shall prepare and deliver to Purchaser, at least three (3) “Business Days” (which term shall mean any
day except a Saturday, Sunday or other day on which commercial banks in New York, New York are required or authorized by law to be closed) prior to the Closing Date, Seller’s estimate of the Final Purchase Price to be paid at Closing, (such
estimated Final Purchase Price being herein referred to as the “Estimated Final Purchase Price”), together with a statement setting forth Seller’s estimate of the amount of each adjustment to the Preliminary Purchase Price to be made
pursuant to Section 2.4. The parties shall negotiate in good faith and attempt to agree on such estimated adjustments prior to Closing. 

(b) At Closing, Purchaser shall pay to Seller the Estimated Final Purchase Price determined as set forth in Section 2.5(a)
less an amount equal to the Performance Deposit plus any interest earned thereon. 

  
 7 

 ARTICLE III 

ASSET INSPECTION AND TITLE EXAMINATION 

Section 3.1 Access to Records and Properties of Seller. 

Between the date of this Agreement and Closing, Seller agrees, subject to Section 8.2, to give Purchaser and its representatives full
access at all reasonable times to the Assets and to the Records for inspection and copying at Purchaser’s expense at Seller’s office in Denver, Colorado. To the extent records are kept or maintained by Seller in other locations, Seller
agrees to make same available at such other locations. 
 Section 3.2 On-Site Tests and Inspections. 

Seller shall permit or, in case of any third-party operated wells, use its commercially reasonable efforts to cause the operator thereof to
permit, Purchaser’s authorized representatives to consult with Seller’s or third-party operator’s agents and employees during reasonable business hours and to conduct, at Purchaser’s sole risk and expense, on-site inspections,
tests and inventories of the Assets. Purchasers environmental investigation of the Assets shall be limited to determination of any required governmental environmental permits (wetlands, air permits, etc.) and conducting a Phase I Environmental Site
Assessment in accordance with the American Society for Testing and Materials (A.S.T.M.) Standard Practice Environmental Site Assessments: Phase I Environmental Site Assessment Process (Publication Designation: E1527-05) (“Site
Assessment”), and at Seller’s discretion, shall be accompanied by Seller’s representative. Purchaser shall furnish Seller, free of cost to Seller, a copy of any written report prepared by or for Purchaser related to any Site
Assessment of the Assets as soon as reasonably possible after it is prepared. All environmental reports prepared by or for Purchaser shall be maintained in strict confidence by Purchaser and shall be used by Purchaser solely in connection with the
evaluation of the Assets or in any dispute with Seller involving the Assets. Except as provided in the preceding sentence, if Closing does not occur, such reports shall not be disclosed to any other party. If Closing does not occur, the foregoing
obligation of confidentiality shall survive for five (5) years after the termination of this Agreement. 
 Section 3.3
Title Matters. 
 (a) For the sole purpose of determining the existence of Title Defects prior to the Closing, Seller
represents that it owns Defensible Title (as defined in Section 3.3(b)) to the Leases except to the extent affected by the litigation described on Schedule C. 

(b) As used herein, the term “Defensible Title” to the Assets shall mean such title of Seller that,: 

(i) is deducible of record either from the records of the applicable county or parish clerk and recorder or, in the case of federal leases,
from the records of the applicable office of the Bureau of Land Management, or in the case of state leases, from the records of the applicable state land office, or from some combination of the foregoing official records; 

  
 8 

 (ii) entitles Seller to receive not less than the net revenue interest (indicated by the letters
“NRI”) of Seller set forth in Schedule B (after accounting for increases or reductions in net revenue interests related to payouts as noted on Schedule B) of all Hydrocarbons produced, saved and marketed from the Leases
throughout the life of such properties; 
 (iii) obligates Seller to bear costs and expenses relating to the maintenance, development and
operation of the Leases in an amount not greater than the working interest (indicated by the letters “WI”) set forth in Schedule B throughout the life of such properties except to the extent such increase in working interest is
accompanied by a proportionate increase in net revenue interest; and 
 (iv) is free and clear of encumbrances, liens and defects other than
the Permitted Encumbrances. 
 (c) The term “Permitted Encumbrances”, as used herein, shall mean: 

(1) lessors’ royalties, overriding royalties, and division orders and sales contracts covering Hydrocarbons, reversionary interests and
similar burdens if and to the extent the net cumulative effect of such burdens does not operate to reduce the net revenue interest at any time in any property to less than the net revenue interest set forth in Schedule B: 

(2) preferential rights to purchase and required third-party consents to assignments and similar agreements with respect to which prior to
Closing: 
 (i) waivers or consents are obtained from the appropriate parties, 

(ii) the appropriate time period for asserting such rights has expired without an exercise of such rights, or 

(iii) arrangements can be made by Seller which are acceptable to Purchaser in order for Purchaser to receive the same economic and operational
benefits as if all such waivers and consents had been obtained; 
 (3) liens for taxes or assessments not yet due or not yet delinquent or,
if delinquent, that are not material and are being contested in good faith in the normal course of business; 

  
 9 

 
(4) all rights to approve, required notices to, filings with, or other actions by governmental or tribal entities in connection with the sale or conveyance of the Assets if the same are
customarily obtained subsequent to such sale or conveyance; 
 (5) rights of reassignment, to the extent any exist as of the date of this
Agreement, upon the surrender or expiration of any lease; 
 (6) easements, rights-of-way, servitudes, permits, surface leases and other
rights in respect of surface operations, pipelines, or the like; conditions, covenants or other restrictions; and easements for pipelines, railways and other easements and rights-of-way, on, over or in respect of any of the Assets which
individually, or in the aggregate, do not materially adversely affect the ownership, operation, value or use of the Assets, or any of them; 

(7) all other liens, charges, encumbrances, contracts, agreements, instruments, obligations, defects and irregularities affecting the Assets
(including, without limitation, liens of operators relating to obligations not yet due or pursuant to which Seller is not in default) that do not reduce the net revenue interest set forth in Schedule B, or do not prevent the receipt of
proceeds of production therefrom, or do not increase the share of costs above the working interest set forth in Schedule B, or that are not such as materially interfere with or detract from the operation, value or use of any of the properties
included within the Assets; 
 (8) liens, if any, to be released at Closing in a form acceptable to Purchaser; 

(9) the terms and conditions of all Leases, agreements, orders, pooling or unitization agreements or declarations included in the Assets or to
which the Assets are subject as long as same do not reduce the net revenue interests for the Assets listed in Schedule B or do not increase the working interests for the interests set forth in Schedule B; and 

(10) rights reserved to or vested in any municipality or governmental, statutory or public authority to control or regulate any of the Assets
in any manner, and all applicable laws, rules and orders of governmental authority; and 
 (11) Materialmen’s, mechanics’,
repairmen’s, employees’, contractors’, operators’ or other similar liens or charges arising in the ordinary course of business incidental to construction, maintenance or operation of the Assets 

(i) they have not yet become due and payable or payment is being withheld as provided by law and Seller either indemnifies Purchaser or agrees
to reduce the Preliminary Purchase Price for the amount claimed, or 

  
 10 

 (ii) if their validity is being contested in good faith by appropriate action provided that
Seller either indemnifies Purchaser or agrees to reduce the Preliminary Purchase Price for the amount claimed. 
 (d) The
term “Title Defect” as used herein shall mean any encumbrance, encroachment, irregularity, defect in or objection to Seller’s title to the Leases and Wells (excluding Permitted Encumbrances) which would result in Seller not having
Defensible Title. 
 Section 3.4 Defect Adjustments. 

(a) “Defective Interest(s)” shall mean that portion of the Assets (as determined in accordance with
Section 3.4(c)) as to which the representation stated in Section 3.3(a) is breached or that Purchaser is otherwise entitled under Sections 3.5 or 3.6 to treat as a Defective Interest, and of which Seller has been given written notice by
Purchaser not later than 5:00 P.M. Denver time on the third Business Day before Closing (not counting the day of Closing) or any later date specified in Section 3.6 for Defective Interests described in that Section (“Defective Interest
Notice Date”). Such written notice shall include 
 (i) a description of the Defective Interest, 

(ii) the basis for the defect that Purchaser believes causes such Asset to be a Defective Interest, 

(iii) the Allocated Value of the affected Asset calculated in accordance with Section 3.4(c), and 

(iv) the amount by which Purchaser believes the Allocated Value of the affected Asset has been reduced by the Defective Interest; 

provided however, that any Title Defect (or individual Title Benefit, as defined in Section 3.8) for which the Defect Adjustment, as
determined in Section 3.4(c), below, is less than fifteen thousand dollars ($15,000.00) shall not be a Defective Interest. For purposes of determining Defect Adjustments pursuant to this Agreement, and without waiver of Purchaser’s rights
under the conveyances of the Assets to be delivered at Closing, Purchaser shall be deemed to have waived all Title Defects of which Seller has not been given written notice by the Defective Interest Notice Date. Prior to Closing, Seller shall have
the option, but not the obligation, to cure any Title Defect or other breach of title warranty for which timely notice is given. If Purchaser desires to attempt to cure any Title Defect, Seller shall cooperate with Purchaser, prior to the Closing
Date, in endeavoring to cure any such Title Defect. 

  
 11 

 (b) Subject to Seller’s right to withdraw a Defective Interest from this
transaction and adjust the Preliminary Purchase Price accordingly, Defective Interests and Title Benefits shall be conveyed to Purchaser hereunder, and the Preliminary Purchase Price shall be reduced or increased, as the case may be, in accordance
with Section 2.4 by an amount determined in accordance with Section 3.4(c) for such Defective Interests and Title Benefits (which net reduction or increase, as applicable, shall be called a “Defect Adjustment”) unless, prior to
the Closing, the basis for treating such Assets as Defective Interests has been removed in a manner satisfactory to Purchaser. The foregoing notwithstanding, there shall be no adjustment to the Preliminary Purchase Price unless the total value of
all Defective Interests, net of the total value of all and Title Benefits, plus all Conditions (as described in Section 13.2 below) exceeds one and one-half percent (1.5%) of the Preliminary Purchase Price and then only to the extent that
such total value of all Defective Interests, net of the total value of all and Title Benefits, plus all Conditions exceeds one and one-half percent (1.5%) of the Preliminary Purchase Price. If Seller and Purchaser cannot agree to the amount of
a Defect Adjustment for a specified Title Defect or Title Benefit, all information relating to the Defective Interest or Title Benefit shall be submitted to Robert M. Honea, 5000 Rogers Street, Ft. Smith, AR 72902, who shall, in good faith,
determine the Defect Adjustment. 
 (c) The value of each of the Leases and Wells for purposes of determining Preliminary
Purchase Price adjustments under this Section 3.4 (the “Allocated Value”) shall be determined in accordance with Schedule B which Schedule shall be mutually agreed upon by the parties. The amount of the Defect Adjustment
for a Defective Interest or Title Benefit shall be the Allocated Value thereof if the Defective Interest or Title Benefit constitutes the entire property given an Allocated Value. If the amount of a Defect Adjustment cannot be determined directly
because the Defective Interests or Title Benefit constitute a property or interest included within, but not totally comprising, the Assets to which an Allocated Value is given, Purchaser and Seller shall proportionately reduce the Allocated Value to
reflect the present or potential impact of the Title Defect or Title Benefit. The amount of any Defect Adjustment shall reflect the anticipated reduction or increase of the Allocated Value for the affected property caused by the breach of title
warranty or Title Benefit, taking into account the method for arriving at such Allocated Value, the legal and practical effect of the Title Defect or Title Benefit or other breach, the probability of adverse impact of the Title Defect or breach of
title warranty on the use and enjoyment of the property interest affected, and the potential economic effect of the Title Defect or breach of title warranty or Title Benefit over the life of the property involved. 

(d) Notwithstanding any claimed Title Defect, Purchaser shall have the right at any time up to the Closing Date to waive any
such claim, and purchase the affected property without reduction of the Preliminary Purchase Price. 
 (e) If Seller
withdraws a Defective Interest from this transaction as provided above, Seller may attempt to cure the defect prior within 180 days following the Closing Date (the “Cure Period”). If Seller elects to attempt to cure the defect, the amount
of the 

  
 12 

 
corresponding Defect Adjustment shall be deducted from the Preliminary Purchase Price and paid into an escrow account with an escrow agent mutually agreeable to the parties. If Seller and
Purchaser mutually agree that the defect has been cured, then within two (2) Business Days after such determination, the amount withheld in the escrow account with respect thereto shall be released to Seller. If Purchaser and Seller mutually
agree that a defect cannot be cured, then within two (2) Business Days after such determination, the amount withheld in the escrow account with respect thereto shall be released to Purchaser. If at the end of the Cure Period, Seller has been
unable to cure defects (and there is no dispute as to whether or not said defects have been cured) the amount withheld in the escrow account with respect thereto shall be released to Purchaser. If at the end of the Cure Period, Purchaser and Seller
are unable to agree whether there has been a satisfactory resolution of the defect, then such disagreement shall be resolved as provided in Section 3.4(b). 

Section 3.5 Casualty Loss. 

If, prior to the Closing, any portion of the Wells or related equipment is destroyed or impaired by fire or other casualty, Purchaser may
elect: 
 (a) to treat the Assets so affected by such destruction as Defective Interests in accordance with Section 3.4,
or 
 (b) to purchase such Assets notwithstanding any such destruction (without adjustment to the Preliminary Purchase Price
therefor), in which case, Seller shall, at the Closing, pay to Purchaser all sums paid to Seller by third-parties (including insurance proceeds relating thereto) and assign to Purchaser all sums to which Seller is entitled, as the case may be, by
reason of the destruction of such Wells and the underlying Assets to be assigned to Purchaser and shall assign, transfer and set over unto Purchaser all of the right, title and interest of Seller in and to any unpaid awards or other payments from
third-parties arising out of the destruction of such Wells and the Assets to be assigned to Purchaser. 
 Prior to the Closing, Seller shall not voluntarily
compromise, settle or adjust any amounts payable by reason of any destruction of such Wells and the underlying Assets without first obtaining the written consent of Purchaser. 

Section 3.6 Seller’s Obligation and Identification of Additional Defective Interests. 

(a) All consents to assign relating to the Assets (“Consents”) and preferential rights to purchase
(“Preferential Rights) are listed on Schedule A-3. 
 (b) If any preferential purchase right is exercised prior
to the Closing, Purchaser may elect to treat that portion of the Assets affected by such preferential right as a Defective Interest. If Seller receives notice of such exercise prior to Closing, Seller shall give Purchaser notice thereof in
accordance with Section 3.4(a) prior to the Closing, in which event the property affected by such preferential purchase right shall be treated as a Defective Interest. All Assets that are subject to preferential rights to purchase that

  
 13 

 
have not been exercised prior to Closing shall be conveyed to Purchaser at Closing. If Seller or Purchaser receive notice of such exercise after the Closing, the party receiving such notice shall
promptly give notice to the other party, such affected portion of the Assets shall not be treated as a Defective Interest, no adjustment to the Preliminary Purchase Price shall be made, and Purchaser shall convey the affected property interest to
the holder of the preferential purchase right upon receipt of the Allocated Value attributable thereto from such party. 

(c) 

(i) If (A) Seller fails to obtain a Consent prior to Closing and the failure to obtain such Consent would cause
(1) the assignment to Purchaser of any portion of the Assets to be void, or (2) the termination of a Lease under the express terms thereof, or (B) a Consent requested by Seller is denied in writing, then, in each case, that portion of
the Assets affected by such Consent shall be excluded from the Assets to be conveyed to Purchaser at Closing and the Purchase Price shall be reduced by the Allocated Value of such portion of the Assets. In the event that a Consent that was not
obtained prior to Closing is obtained following Closing or the requirement to obtain such Consent is waived by Purchaser then, within 10 days after such Consent is obtained or the requirement to obtain such Consent is waived by Purchaser,
(x) Seller shall assign such excluded portion of the Assets to Purchaser pursuant to an assignment in substantially the form of the Conveyance (and if the requirement to obtain a Consent is waived by Purchaser, Purchaser shall have no claim
against, and Seller shall have no Liability for, the failure to obtain such Consent), and (y) Purchaser shall pay to Seller by wire transfer of immediately available funds an amount equal to the amount by the Allocated Value of such portion of
the Assets so assigned. 
 (ii) If (A) Seller fails to obtain a Consent prior to Closing and the failure to obtain such
Consent would not cause (1) the assignment to Purchaser of any portion of the Assets to be void, or (2) the termination of a Lease under the express terms hereof, and (B) such Consent requested by Seller is not denied in writing, then
that portion of the Assets subject to such Consent shall be assigned by Seller to Purchaser at Closing pursuant to the General Assignment and Bill of Sale and Purchaser shall have no claim against, and Seller shall have no liability for, the failure
to obtain such Consent. 
 (d) If, prior to the Closing Date, Purchaser or Seller become aware of any suit, action or other
proceeding before any court or government agency other than those listed in Schedule C that would result in loss or impairment of Seller’s title to any portion of the Assets, or a portion of the value thereof, Purchaser may elect to
treat that portion of the Assets affected thereby as a Defective Interest by giving Seller notice thereof in accordance with Section 3.4(a) no later than the Closing Date, in which event the procedures specified in Section 3.4 shall apply
to the property affected by such proceeding. 

  
 14 

 (e) If with respect to any required third-party consents to assignment and
similar agreements, one or more of the conditions set forth in Section 3.3(c)(2) has not been met prior to the Closing, Purchaser may elect to treat that portion of the Assets affected thereby as a Defective Interest by giving Seller notice
thereof in accordance with Section 3.4(a) no later than the Closing Date, in which event the procedures specified in Section 3.4 shall apply to the property affected by such third-party right. 

Section 3.7 Termination Due to Title Matters and Conditions. 

If, prior to Closing, the aggregate amount of the value of (a) all Defect Adjustments asserted in good faith under this Article III and
(b) all adjustments for Conditions pursuant to Section 13.2(b)(i) and 13.2(b)(ii), equals or exceeds twenty percent (20%) of the Preliminary 

Purchase Price, then either party, at its option exercised by the giving of written notice to the other party not later than the Closing, may elect to
terminate this Agreement, in which event Seller and Purchaser shall be under no obligation to each other with regard to the purchase and sale of any of the Assets, such termination to be without liability to either party. The Performance Deposit to
be returned to Purchaser with interest within five (5) days of termination. Failure of either party to give timely notice to the other party of an election to terminate this Agreement pursuant to this Section 3.7 shall be deemed an
election not to terminate this Agreement. 
 Section 3.8 Title Benefits.  

(a) If a Party discovers any Title Benefit affecting the Assets, it shall promptly notify the other Party in writing thereof on
or before the expiration of the Defective Interest Notice Date. The notice shall include: (1) description of the Title Benefits and Assets affected; (2) amount by which Party reasonably believes Allocated Value of Properties is increased;
and (3) computations upon which Party’s beliefs are based. Subject to Section 3.4(a), Sellers shall be entitled to an upward adjustment to the Preliminary Purchase Price pursuant to Section 2.4(a)(vi) with respect to all Title
Benefits, in an amount determined in accordance with Section 3.4(c). For purposes of this Agreement, the term “Title Benefit” shall mean Seller’s Net Revenue Interest in any Asset is greater than that set forth in Schedule
B or Seller’s Working Interest in any Asset less than that set forth in Schedule B (without a corresponding decrease in the Net Revenue Interest). Any matters that may otherwise constitute Title Benefits, but of which Purchaser has
not been specifically notified by Seller in accordance with the foregoing, shall be deemed to have been waived by Seller for all purposes. 

(b) Subject to Section 3.4(a), the aggregate amount of undisputed Title Benefits shall be netted against the aggregate
amount of undisputed Defect Adjustments prior to any adjustment of the Preliminary Purchase Price at Closing pursuant to Section 2.4. 

(c) If with respect to a Title Benefit the Parties have not agreed on the amount of the upward Preliminary Purchase Price
adjustment or have not otherwise agreed on such amount prior to the Closing Date, Seller or Purchaser shall have the right to elect to have such Preliminary Purchase Price adjustment determined pursuant to Section 3.4(b).

  
 15 

 
If the amount of such adjustment is not determined pursuant to this Agreement by the Closing, the undisputed portion of the Preliminary Purchase Price with respect to the Asset affected by such
Title Benefit shall be paid by Purchaser at the Closing and, subject to Section 3.4(b), upon determination of the amount of such adjustment, any unpaid portion thereof shall be paid by Purchaser to Sellers or shall be netted against the
aggregate amount of any disputed Title Defect Adjustments that also are determined after Closing. 
 ARTICLE IV 

SELLER’S REPRESENTATIONS AND WARRANTIES 

Seller represents and warrants to Purchaser as follows: 

Section 4.1 Organization, Standing and Power. 

Forest Oil Corporation is a corporation duly organized, validly existing and in good standing under the laws of the state of New York and has
all requisite corporate power and authority to own, lease and operate its properties and to carry on its business as now being conducted. Seller is duly qualified to carry on its business in each state identified in Schedule A where failure
to so qualify would have a materially adverse effect upon its business or properties in such state. 
 Section 4.2 Authority and
Enforceability. 
 The execution and delivery by Seller of this Agreement, and the consummation of the transactions contemplated hereby,
have been duly and validly authorized by all necessary corporate action, on the part of Seller. This Agreement is the valid and binding obligation of Seller, enforceable against Seller in accordance with its terms, subject to bankruptcy, insolvency,
fraudulent transfer, reorganization, moratorium and similar laws of general applicability and to general equity principles. Neither the execution and delivery by Seller of this Agreement nor the consummation of the transactions contemplated hereby,
nor compliance by Seller with any of the provisions hereof, will 
 (a) conflict with or result in a breach of any provision
of Seller’s certificate of incorporation or bylaws, 
 (b) except with respect to third-party consents or waivers
required in connection with agreements and properties to be assigned pursuant to this Agreement (it being understood that Seller will make reasonable efforts to obtain such required consents or waivers) result in a material default (with due notice
or lapse of time or both) or give rise to any right of termination, cancellation or acceleration under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license or agreement to which Seller is a party or by which
Seller or any of Seller’s properties or assets may be bound or, 

  
 16 

 (c) violate any order, writ, injunction, judgment, decree, statute, rule or
regulation applicable to any Seller, or any Seller’s properties or assets, assuming receipt of all routine governmental consents normally acquired after the consummation of transactions such as transactions of the nature contemplated by this
Agreement, except, in any of (a)-(c), where any such foregoing effect would not be likely to affect Purchaser’s ability to own, possess, control or enjoy the Assets. 

Section 4.3 Claims Affecting the Assets. 

Except as disclosed on Schedule C, to Seller’s knowledge there is no suit, action, claim, investigation or inquiry by any person or
entity or by any administrative agency or governmental body and no legal, administrative or arbitration proceeding pending, or to Seller’s knowledge, threatened against or affecting the Assets. Schedule C lists all actions, suits,
claims, proceedings, agency enforcement actions or investigations pending affecting the Assets or the ownership or operation thereof to the knowledge of Seller. 

Section 4.4 Claims Affecting the Sale. 

Except as disclosed on Schedule C, to Seller’s knowledge there is no suit, action, claim, investigation or inquiry by any person or
entity or by any administrative agency or governmental body and no legal, administrative or arbitration proceeding pending, or to Seller’s knowledge, threatened against Seller or any Affiliate of Seller which has affected or could affect
Seller’s ability to consummate the transactions contemplated by this Agreement. In this Agreement, “Affiliate” means any person or entity which controls, is controlled by or is under common control with, the subject person or entity.

 Section 4.5 No Demands. 

Except as disclosed on Schedule C, Seller has received no notice of any claimed defaults, offsets or cancellations from any lessors with
respect to the Leases, and Seller has no knowledge of the existence of any default existing with respect to any of the Leases or any express or implied term of any Lease. 

Section 4.6 Taxes. 

To Seller’s knowledge all ad valorem, real property, personal property, production, severance, excise and other taxes applicable to the
ownership and operation of the Assets prior to the Effective Time have been or will be duly and timely paid except as may be contested by Seller in good faith. 

Section 4.7 Leases. 

To the knowledge of Seller: 

(a) The Leases have been maintained according to their terms, in compliance with the agreements to which the Leases are
subject; and 
 (b) The Leases are presently in full force and effect. 

  
 17 

 Section 4.8 Non-Foreign Representation. 

Seller is not a non-resident alien, foreign corporation, foreign partnership, foreign trust or foreign estate (as those terms are defined in
Internal Revenue Code and Income Tax Regulations). 
 Section 4.9 Commitments for Expenditures.  

Schedule E lists the open and outstanding authority for expenditures (“AFE’s”). Except as set forth on Schedule E
there are no open AFE’s or outstanding AFE’s which Seller has received from a third party operator, but has not responded to. 

Section 4.10 Bankruptcy. 

There are no bankruptcy, reorganization or receivership proceedings pending, being contemplated by or, threatened in writing against Seller.

 Section 4.11 Contracts. 

Except as set forth in Schedule A-3, there are no other contracts (not including oil and gas leases) which in the aggregate will result
in payments in the aggregate of $100,000.00 during the current or any subsequent calendar year (based solely on the terms thereof and current volumes, without regard to any expected increase in volumes or revenues) that are not capable of being
terminated on notice of sixty (60) days or less without penalty. 
 Section 4.12 No Violations of Laws. 

To Seller’s knowledge, Seller is not in material violation of any applicable statute, law, rule, regulation, ordinance, order, code,
ruling, writ, injunction, decree or other official act of or by any governmental authority (collectively, “Law”) with respect to its ownership and operation of the Assets. 

Section 4.13 Royalties. 

To Seller’s knowledge, except for such items that are being held in suspense as permitted pursuant to applicable Law or for other reasons
as shown on Schedule 4.13, Seller has paid all lease burdens due by Seller with respect the Assets or, if Seller has not paid any such lease burdens, is contesting such unpaid lease burdens in good faith. A listing of such contested unpaid
lease burdens is attached hereto as Schedule 4.13. 
 Section 4.14 Production Allowables. 

Seller has not received written notice that there have been any changes proposed in the production allowables for any Wells. 

Section 4.15 Change in Operator. 

To Seller’s knowledge, Seller has not received any proposed change in operator with respect to any of the Assets. 

  
 18 

 Section 4.16 Payout Balances. 

Schedule 4.16 contains a list of the status of any “payout” balances for the Wells that are subject to a material reversion or
other adjustment at some level of cost recovery or payout (or passage of time or other event other than termination of a Lease by its terms). 

ARTICLE V 

PURCHASER’S REPRESENTATIONS AND WARRANTIES 

Section 5.1 Organization, Standing and Power. 

Purchaser is a Texas limited partnership duly organized, validly existing and in good standing under the laws of the state of its formation and
has all requisite power and authority to own, lease and operate its properties and to carry on its business as now being conducted. Purchaser is duly qualified to carry on its business in each state identified in Schedule A where the failure to so
qualify would have a materially adverse effect on Purchaser’s business or properties in such state. 
 Section 5.2 Authority
and Enforceability. 
 The execution and delivery by Purchaser of this Agreement, and the consummation of the transactions contemplated
hereby, have been duly and validly authorized by all necessary corporate action on the part of Purchaser. This Agreement is the valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its terms, subject to
bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws of general applicability and to general equity principles. Neither the execution and delivery by Purchaser of this Agreement nor the consummation of the
transactions contemplated hereby, nor compliance by Purchaser with any of the provisions hereof, will 
 (a) conflict with or
result in a breach of any provision of its certificate of incorporation or bylaws, 
 (b) result in a material default (with
due notice or lapse of time or both) or give rise to any right of termination, cancellation or acceleration under any of the terms, conditions or provisions of any note, bond, mortgage, indenture, license or agreement to which Purchaser is a party
or by which it or any of its properties or assets may be bound or 
 (c) violate any order, writ, injunction, judgment,
decree, statute, rule or regulation applicable to Purchaser, or any of its properties or assets, assuming receipt of all routine governmental consents normally acquired after the consummation of transactions such as transactions of the nature
contemplated by this Agreement. 

  
 19 

 Section 5.3 Independent Evaluation. 

Purchaser is knowledgeable and experienced in the evaluation, acquisition and operation of oil and gas properties. Except as set forth in this
Agreement, Purchaser acknowledges that Seller has made no representations or warranties as to the accuracy or completeness of such information, and, in entering into and performing this Agreement, Purchaser has relied and will rely solely upon its
independent investigation of, and upon its own knowledge and experience and that of its advisors’ with respect to, the Assets and their value. 

Section 5.4 Suits Affecting the Sale. 

There is no suit, action, claim, investigation or inquiry by any person or entity or by any administrative agency or governmental body and no
legal, administrative or arbitration proceeding pending or, to Purchaser’s knowledge, threatened against Purchaser or any Affiliate of Purchaser which has affected or could materially affect Purchaser’s ability to consummate the
transactions contemplated by this Agreement. 
 Section 5.5 Eligibility. 

The Purchaser is eligible under all applicable laws and regulations to own the Assets, including, without limitation, the Leases. 

Section 5.6 Financing. 

Purchaser has the financial ability to purchase the Assets, and Closing of the transaction is not contingent upon obtaining financing. 

ARTICLE VI 
 ASSUMPTION
OF OBLIGATIONS AND INDEMNIFICATION 
 Section 6.1 Assumption of Certain Liabilities and Obligations by Purchaser. 

If the Closing occurs, (a) Purchaser assumes all obligations that are attributable to the Assets on or after the Effective Time including,
but not limited to, any obligation for make-up gas according to the terms and conditions of the applicable Product Sales and Transportation Agreements and Operating Agreements; all obligations to properly plug and abandon all wells, pipelines and
other facilities now or thereafter located on the Leases (regardless of whether any such obligation to plug and abandon is attributable to periods of time prior to or after the Effective Time) and to restore the surface of the Leases and the Lands
in accordance with applicable lease or other agreements and governmental (including environmental) laws, orders and regulations; and (b) Purchaser agrees to execute and deliver any specific assumption agreements, bonds, applications, or
financial assurances, if any, required to effectuate the assumption of such obligations. Provided however, that Purchaser does not assume any obligations or liabilities of Seller attributable to the Assets to the extent such obligations or
liabilities consist of the following: 
 (i) attributable to or arise out of the ownership, use or operation of the Excluded
Assets; or 

  
 20 

 (ii) attributable to any Income Tax Liability or Franchise Tax Liability. 

Section 6.2 Indemnification by Purchaser. 

If the Closing occurs Purchaser agrees to release, indemnify, defend and hold harmless Seller, its directors, officers, employees, agents,
representatives, successors, and assigns, from and against any and all suits, judgments, damages, claims, liabilities, losses, costs and expenses (including court costs and reasonable attorney’s fees): 

(a) that are attributable to the use, ownership and operation of the Assets arising and attributable to periods of time after
the Effective Time (but including, the obligation to properly plug and abandon all wells now or hereafter located on the Leases regardless of when such obligation arose) and following the expiration of the period of Seller’s indemnification set
forth below, FOR ALL PERIODS OF TIME BEFORE AND AFTER THE EFFECTIVE TIME, REGARDLESS OF WHETHER SELLER, ITS AGENTS AND REPRESENTATIVES WERE WHOLLY OR PARTIALLY NEGLIGENT OR OTHERWISE AT FAULT;  

(b) that arise out of any breach by Purchaser of any representation, warranty, covenant or agreement hereunder. 

(c) any assumed obligations, but subject to any indemnity obligations of Seller hereunder. 

Section 6.3 Indemnification by Seller. 

If the Closing occurs, Seller agrees, for a period of twelve (12) months after the Closing Date, to release, indemnify, defend and hold
harmless Purchaser from and against any and all suits, judgments, damages, claims, liabilities, losses, costs and expenses (including, without limitation, court costs and reasonable attorneys’ fees): 

(a) that are attributable to use, ownership or operation of the Assets attributable to periods of time prior to the Effective
Time (other than relating to the obligation to properly plug and abandon wells located on the Leases) REGARDLESS OF WHETHER PURCHASER WAS WHOLLY OR PARTIALLY NEGLIGENT OR OTHERWISE AT FAULT, OR 

(b) that arise out of any breach by Seller of any representation, warranty, covenant or agreement hereunder, including the
special warranty of title contained in the conveyances to be delivered at closing; 
 (c) any offsite disposal, prior to the
Closing, of hazardous substances, hazardous materials or hazardous waste to any location not on the Assets or lands pooled or unitized therewith, attributable to the period of Seller’s ownership of the Assets and arising from the operation or
use of the Assets; 

  
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 (d) (i) the proper payment or accounting for Burdens attributable to
Seller’s ownership of the Assets prior to the Effective Time, and (ii) disputes related to the proper billing or payment of joint interest billing accounts attributable to Seller’s ownership of the Assets prior to Closing and related
to ownership or operation of the assets prior to the Closing; or 
 (e) any retained obligations of Seller as noted herein;
provided, however, that such indemnity, defense and hold harmless obligations of Seller set forth in this Section 6.3 shall not apply to (i) any amount that was taken into account as an adjustment to the Preliminary Purchase Price pursuant
to the provisions hereof, (ii) any liability of Purchaser to Seller under the provisions of this Agreement, and (iii) any amount in excess of fifteen percent (15%) of the Preliminary Purchase Price. 

Section 6.4 Interpretation. 

The provisions of each of the foregoing Sections 6.2 and 6.3 shall be interpreted as follows: 

(a) The indemnity provided for by each of such Sections shall extend to any loss, cost, expense, liability or damage
(“Loss”) incurred or suffered by the indemnified party, including reasonable fees and expenses of attorneys, technical experts and expert witnesses reasonably incident to matters indemnified against. The indemnity provided for in
Section 6.3 with respect to a breach or failure of a special warranty of title for an individual Asset contained in the conveyance to be delivered at Closing shall be limited in amount to the Allocated Value for each such Asset, reduced by the
value of production from such Asset actually received by Purchaser (to the extent such production received is not subject to any repayment or offset), net of expenses incurred for such Asset by the Purchaser, for which a special warranty of title
was breached or failed, but only in proportion to and to the extent of such breach or failure. After the Defective Interest Notice Date (prior to which the adjustment provisions of Section 3.4 also shall be in effect) and subject to the
provisions of Section 3.6, the indemnity provided for herein shall be the sole and exclusive remedy, as between the parties hereto, for a breach or failure of a warranty or representation of title. The adjustment provisions for breaches of
title representations and warranties as set forth in Section 3.4 are applicable only as to breaches of title representations and warranties for which notice has been given on or prior to the Defective Interest Notice Date subject to the
provisions of Section 3.6. Subject to Section 3.6, after the Defective Interest Notice Date, the exclusive applicable representations and warranties of title shall be the special warranty of title by, through and under Seller, contained in
the conveyances delivered pursuant hereto, and not otherwise. 
 (b) The amount of each payment claimed by an indemnified
party to be owing pursuant to Section 6.2 or Section 6.3, together with a list identifying to the extent reasonably possible each separate item of Loss for which payment is so claimed, shall be

  
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set forth by such party in a statement delivered to the indemnifying party or parties, as the case may be, setting forth the basis of such claim and shall be paid by such indemnifying party or
parties, as the case may be, as and to the extent required herein with thirty (30) days after receipt of such statement. 

(c) Except as set forth in Section 8.2, Section 8.3, and Article X of this Agreement, and as may be permitted under
the conveyances delivered hereunder, the remedies set forth in this Article VI shall be the sole and exclusive remedies of Seller and Purchaser for any breach of a representation, warranty or covenant, or otherwise. 

Section 6.5 Notices. 

(a) Within sixty (60) days after notification to an indemnified party with respect to any claim or legal action or other
matter that may or could result in a Loss for which indemnification may be sought under Article VI, but in any event in time sufficient for the indemnifying party to contest any action, claim or proceeding that has become the subject of proceedings
before any court or tribunal, such indemnified party shall give written notice of such claim, legal action or other matter to the indemnifying party and, at the request of such indemnifying party, shall furnish the indemnifying party or its counsel
with copies of all pleadings and other information with respect to such claim, legal action or other matter and shall, at the election of the indemnifying party made within sixty (60) days after receipt of such notice, permit the indemnifying
party to assume control of such claim, legal action or other matter (to the extent only that such claim, legal action or other matter relates to a Loss for which the indemnifying party is liable), including the determination of all appropriate
actions, the negotiation of settlements on behalf of the indemnified party, and the conduct, of litigation, through attorneys of the indemnifying party’s choice. In the event of such an election by the indemnifying party, 

(i) any expense incurred by the indemnified party thereafter for investigation or defense of the matter shall be borne by the
indemnifying party, and 
 (ii) the indemnified party shall give all reasonable information and assistance, other than
pecuniary, that the indemnifying party shall deem reasonably necessary to the proper defense of such claim, legal action, or other matter. 

In the absence of such an election, the indemnified party will use its commercially reasonable efforts to defend any claim, legal action or
other matter to which such other party’s indemnifications under this Article VI applies. 
 (b) Failure to provide
timely notice pursuant to subsection (a) of this Section 6.5 shall not deprive the party seeking indemnification of its right to indemnifications pursuant to this Article VI, although such party shall be liable for any damages occasioned
by its delay in affording the party entitled to notice with such notice and shall not be entitled to indemnifications for any costs incurred during the period of such delay that could reasonably have been avoided by the indemnifying party if timely
notice had been given. 

  
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 ARTICLE VII 

SELLER’S OBLIGATIONS PRIOR TO CLOSING 

Section 7.1 Restrictions on Operations. 

(a) From the date hereof until the Closing Date, Seller shall (or, with respect to non-operated Wells, shall use its
commercially reasonable efforts to cause the operator of all Wells in which it owns working interests to): 
 (i) not abandon
any Well on any Lease capable of commercial production, or release or abandon all or any part of the Assets capable of commercial production, or release or abandon all or any portion of the Leases without Purchaser’s written consent; 

(ii) not cause the Assets to be developed, maintained or operated in a manner materially inconsistent with prior operation;

 (iii) not commence or agree to participate in any operation on the Assets anticipated to cost in excess of one hundred
thousand and NO/100 Dollars ($100,000.00) per operation net to Seller’s interest without Purchaser’s written consent (except emergency operations, operations required under presently existing contractual obligations, and operations
undertaken to avoid any penalty provision of any applicable agreement or order); 
 (iv) not create any lien, security
interest or other encumbrance with respect to the Assets (except for Permitted Encumbrances), or, without Purchaser’s written consent, enter into any agreement for the sale, disposition or encumbrance of any of the Assets, or dedicate, sell,
encumber or dispose of any oil and gas production, except in the ordinary course of business on a contract which is terminable on not more than thirty (30) days’ notice except production sold under a contract listed on Schedule A-3;

 (v) not agree to any alterations in the contracts included in or relating to a material portion of the Assets or enter
into any material new contracts relating to the Assets (other than contracts terminable on not more than thirty (30) days’ notice) without Purchaser’s written consent; 

(vi) maintain in force all insurance policies covering the Assets; 

(vii) maintain the Leases in full force and effect and comply with all express or implied covenants contained therein (provided
that this covenant shall not be deemed to expand Seller’s title warranties beyond those expressly contained in this Agreement); 

  
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 (viii) furnish Purchaser with copies of all AFE’s in excess of one hundred
thousand dollars ($100,000.00) received or issued by Seller prior to the Closing. 
 (b) From and after the date of this
Agreement, until Closing, Seller shall: 
 (i) provide Purchaser with access (or, where Seller is not an operator, use its
commercially reasonable efforts to arrange for access) to the Assets for inspection thereof at the sole cost, risk and expense of Purchaser; 

(ii) use reasonable efforts to obtain any and all necessary consents, waivers (including waiver of preferential purchase
rights), permissions and approvals of third parties or governmental authorities in connection with the sale and transfer of the Assets other than approvals of state or federal lease assignments to Purchaser; 

(iii) cause to be filed all reports required to be filed by Seller with governmental authorities relating to the Assets; 

(iv) provide prompt notice to Purchaser of any notice received by Seller of a default, claim, obligation or suit which affects
any of the Assets; and 
 (v) notify Purchaser of any event, condition, or occurrence which results in any of the
representations and warranties made herein to be untrue. 
 Section 7.2 Operated Assets 

Seller makes no representations or warranties to Purchaser as to transferability or assignability of operatorship of any Assets operated by
Seller. Rights and obligations associated with operatorship of such Assets are governed by operating and similar agreements covering the Assets and will be decided in accordance with the terms of such agreements. However, Seller will assist
Purchaser in its efforts to succeed Seller as operator of any Wells included in the Assets. For all assets operated by Seller, Seller shall execute and deliver to Purchaser and Purchaser shall promptly file the appropriate forms with the applicable
regulatory agency transferring operatorship of such Assets to Purchaser, to the extent permitted or approved pursuant to the applicable operating agreement. 

ARTICLE VIII 

ADDITIONAL AGREEMENTS OF THE PARTIES 

Section 8.1 Government Reviews and Filings. 

Both prior to and after the Closing, as appropriate, each of Seller and the Purchaser shall in a timely manner: 

(a) make required filings with, prepare applications to and conduct negotiations with each governmental agency as to which such
filings, applications or negotiations are necessary or appropriate for the consummation of the transactions contemplated hereby, and 

  
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 (b) provide such information as each may reasonably request to make such filings,
prepare such applications and conduct such negotiations. Seller shall cooperate with and assist Purchaser in pursuing such filings, applications and negotiations, and Purchaser shall cooperate with and assist Seller with respect to such filings,
applications and negotiations. Each party shall be responsible for and shall make any governmental filings occasioned by the ownership or structure of such party. If either Seller or Purchaser determines that the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 is applicable to this transaction, then both parties shall promptly file with the Federal Trade Commission and the Department of Justice the required notifications, reports and supplemental information to comply in all
respects of the requirements of the Act. Purchaser shall promptly pay to the appropriate government agency all filing fees required of “acquiring persons” as determined by the Act. Notwithstanding anything to the contrary herein contained,
Closing shall not occur unless in the opinion of Seller’s counsel, it can occur without violation of the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the rules and regulations of the Federal Trade Commission and the Department of
Justice thereunder. 
 Section 8.2 Confidentiality. 

Until completion of the Closing (and without limitation in the event Closing should not occur for any reason), except as required by law,
Purchaser and its officers, agents and representatives shall continue to be bound by the Confidentiality Agreement between the parties dated October 1, 2014. 

Section 8.3 Taxes. 

(a) Each party shall provide the other party with reasonable information which may be required by the other party for the
purpose of preparing tax returns and responding to any audit by any taxing jurisdiction. Each party shall cooperate with all reasonable requests of the other party made in connection with contesting the imposition of taxes. Notwithstanding anything
to the contrary in this Agreement neither party shall be required at any time to disclose to the other party any tax returns or other confidential tax information. 

(b) Seller and Purchaser shall report the information required by Section 1060 of the Internal Revenue Code of 1986, as
amended (or any corresponding state or local income tax statute), in a manner consistent with 
 (i) the allocations set
forth on Schedule B, as adjusted pursuant to this Agreement and 
 (ii) the requirements of such Section 1060.

  
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 (c) All ad valorem taxes, real property taxes, personal property taxes and
similar obligations (“Property Taxes”) attributable to the Assets with respect to the tax period in which the Effective Time occurs shall be apportioned between Seller and Purchaser as of the Effective Time, based on the number of days in
the calendar year the Assets were owned by each party. With respect to the Assets operated by Seller, only, the owner of record on the assessment date shall file or cause to be filed all required reports and returns incident to the Property Taxes
and shall pay or cause to be paid to the taxing authorities all Property Taxes relating to the tax period in which the Effective Time occurs. If Seller is the owner of record on the assessment date, then Purchaser shall pay to Seller
Purchaser’s pro rata portion of Property Taxes within 30 days after receipt of Seller’s invoice therefor, except to the extent taken into account as an adjustment to the Preliminary Purchase Price pursuant to Section 2.4. If Purchaser
is the owner of record as of the assessment date then Seller shall pay to Purchaser Seller’s pro rata portion of Property Taxes within 30 days after receipt of Purchaser’s invoice therefor. Each party shall promptly provide the other party
with copies of all reports and returns received for Property Taxes attributable to non-operated Assets with respect to the tax periods ending prior to or in which the Effective Time occurs. Purchaser shall promptly pay to the operator of the
non-operated Assets the amount of tax owing for the tax periods for which such reports or returns have been received and shall invoice Seller for Seller’s pro rata share, if any, of such tax. Seller shall pay such invoice within 30 days of
receipt thereof from Purchaser. 
 (d) Subject to the provisions of Section 8.3(e), Seller shall indemnify Purchaser for
all liabilities that are assessed against Purchaser for foreign, federal, state, local or Indian Tribal taxes (other than margin or income taxes) in respect of the ownership or operation of the Assets prior to the Effective Time, together with
penalties and interest thereon (provided such penalties and interest do not result from the negligence, late filing, fraud or acts of misfeasance or malfeasance of Purchaser), to the extent such liabilities exceed the amounts of such taxes paid by
Seller; provided that Seller shall be entitled to all refunds or rebates of taxes paid in respect of the ownership or operation of the Assets prior to the Effective Time that may be received by Seller or Purchaser. Subject to the provisions of
Section 8.3(e), Purchaser shall indemnify Seller for all liabilities which are assessed against Seller for foreign, federal, state, local or Indian Tribal taxes (other than margin or income taxes), together with penalties and interest thereon
(provided such penalties and interest do not result from the negligence, late filing, fraud or acts of misfeasance or malfeasance of Seller), to the extent such liabilities relate to the ownership or operation of the Assets from and after the
Effective Time; provided, however, that such indemnity shall not apply to such taxes to the extent (but only to the extent) such taxes are included in the determination of the Final Purchase Price, and provided further, however, that Purchaser shall
be entitled to all refunds or rebates of taxes attributable to the Assets on or after the Effective Time that may be received by Seller or Purchaser, except to the extent (but only to the extent) such refunds or rebates are included in the
determination of the Final Purchase Price. 

  
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 (e) In order for Seller or Purchaser (“Claimant”) to make a claim
against the other (“Indemnitor”) under this Section 8, Claimant shall give prompt notice to Indemnitor of any liability for which Claimant would claim indemnification under this Section 8.3, which notice shall include the
circumstances surrounding such liability. Indemnitor shall then have the right but not the obligation, to contest such liability at its sole cost and expense by giving written notice to Claimant of such election within 30 days after Indemnitor
receives Claimant’s notice. Should Indemnitor fail to notify Claimant within such 30-day period, Indemnitor shall be deemed to have elected not to contest such liability. Should Indemnitor elect (or be deemed to have elected) not to contest
such liability, Indemnitor shall pay the full amount due under Section 8.3(d) in respect of such liability to Claimant in cash within 30 days after Indemnitor elects (or is deemed to have elected) not to contest such liability. Except as
specifically provided in this Section 8.3 with respect to certain tax issues which must be combined or joined with other tax issues, if Indemnitor elects to contest any such liability, Claimant shall give Indemnitor full authority to defend,
adjust, compromise or settle such liability and any action, suit, or proceeding in which Indemnitor contests such liability, in the name of Claimant or otherwise as Indemnitor shall elect. In any administrative or legal proceeding, Indemnitor shall
employ counsel selected by it and reasonably acceptable to Claimant. With respect to tax issues incident to any such liability that must be combined or joined with one or more other tax issues which Claimant desires to contest, Claimant and
Indemnitor shall cooperate fully, and control of any administrative legal proceeding shall rest with the party having the greater ultimate liability (including liability under Section 8.3(d) for the taxes in dispute). The party in control may
not adjust, compromise or settle taxes which are contested by or on behalf of the other party without the consent of the other party. With respect to any liability contested by Indemnitor under the terms of this Section 8.3(d), Indemnitor shall
pay the full amount due under Section 8.3(d) in respect of such liability to Claimant in cash within 30 days after the liability is finally determined either by settlement or pursuant to the final unappealable judgment of a court of competent
jurisdiction. 
 (f) Purchaser shall pay and be liable for all sales taxes occasioned by the sale of the Assets and all
documentary, transfer, filing, licensing, and recording fees required in connection with the processing, filing, licensing or recording of any assignments, titles, or bills of sale. 

Section 8.4 Receipts and Credits. 

Following Closing subject to the terms hereof and except to the extent same have already been taken into account as an adjustment to the
Preliminary Purchase Price, all monies, proceeds, receipts, credits and income attributable to the ownership and operation of the Assets (a) for all periods of time from and subsequent to the Effective Time, shall be the sole property and
entitlement of Purchaser, and to the extent received by Seller, Seller shall within 10 business days after such receipt, fully disclose, account for and transmit same to Purchaser and (b) for all periods of time prior to the Effective Time,
shall be the sole property and entitlement of Seller and, to the extent received by Purchaser, Purchaser shall fully disclose, account for and transmit same to Seller within 10 business days. Subject to the terms hereof and except to the extent same
have already been taken into account as an adjustment to the Preliminary Purchase Price, all costs, expenses, disbursements, obligations and liabilities attributable to the Assets (i) for periods of time prior to the Effective Time, regardless
of when due or payable, shall be the sole 

  
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obligation of Seller and Seller shall promptly pay, or if paid by Purchaser, promptly reimburse Purchaser for and hold Purchaser harmless from and against same and (ii) for periods of time
from and subsequent to the Effective Time, regardless of when due or payable, shall be the sole obligation of Purchaser and Purchaser shall promptly pay, or if paid by Seller, promptly reimburse Seller for and hold Seller harmless from and against
same. 
 Section 8.5 Suspense Accounts. 

At the Closing, Seller agrees to transfer to Purchaser and provide information in its possession regarding all of Seller’s payable
accounts holding monies in suspense attributable to the Assets. Purchaser agrees to take and apply such monies in a manner consistent with prudent oil and gas business practices and to indemnify Seller against any claim relating to the failure to
pay such funds after the Closing. 
 Section 8.6 Like-Kind Exchange. 

Seller and Purchaser hereby agree that this transaction may be completed as a like-kind exchange and that each party will assist in completing
the sale as a like-kind exchange. As a like-kind exchange, Seller and Purchaser agree that Purchaser, in lieu of the purchase of the Assets from Seller for the consideration provided herein, shall have the right at any time prior to Closing to
assign all or a portion of its rights under this Agreement to a Qualified Intermediary (as that term is defined in Section 1.1031(k)-1(g)(4)(v) of the Treasury Regulations) or an Exchange Accommodation Titleholder (as that term is defined in
Rev. Proc. 2000-37, 2000-2 C.B. 308) in order to accomplish the transaction in a manner that will comply, either in whole or in part, with the requirements of a like-kind exchange pursuant to Section 1031 of the Code. Likewise, Seller shall
have the right at any time prior to Closing to assign all or a portion of its rights under this Agreement to a Qualified Intermediary for the same purpose. In the event either party assigns its rights under this Agreement pursuant to this
Section 8.6, such party agrees to notify the other party in writing of such assignment at or before Closing. If Seller assigns its rights under this Agreement for this purpose, Purchaser agrees to (i) consent to Seller’s assignment of
its rights in this Agreement in the form reasonably requested by the Qualified Intermediary, and (ii) pay the portion of the Estimated Final Purchase Price attributable to the Assets into a qualified escrow or qualified trust account at Closing
as directed in writing. If Purchaser assigns its rights under this Agreement for this purpose, Seller agrees to (i) consent to Purchaser’s assignment of its rights in this Agreement in the form reasonably requested by Purchaser’s
Qualified Intermediary or Exchange Accommodation Titleholder, (ii) refund to Purchaser the Performance Deposit previously deposited by Purchaser pursuant to this Agreement upon the Qualified Intermediary’s or Exchange Accommodation
Titleholder’s payment to Seller of a replacement Performance Deposit in the same amount, (iii) accept the Estimated Final Purchase Price (as may be adjusted under the terms of this Agreement) for the Assets from the account designated by
Purchaser’s Qualified Intermediary or Exchange Accommodation Titleholder at Closing, and (iv) at Closing, convey and assign directly to Purchaser or Purchaser’s Exchange Accommodation Titleholder (as directed in writing) the Assets
which are the subject of this Agreement upon satisfaction of the other conditions to Closing and other terms and conditions hereof. Seller and Purchaser acknowledge and agree that any assignment of this Agreement shall not increase the costs,
expenses or liabilities of a party as a result of the other party’s assignment of this Agreement to a Qualified Intermediary or 

  
 29 

 
Exchange Accommodation Titleholder, shall not release either party from any of their respective liabilities and obligations to each other under this Agreement, and that neither party represents
to the other that any particular tax treatment will be given to either party as a result thereof. 
 ARTICLE IX 

CONDITIONS TO CLOSING 

Section 9.1 Seller’s Conditions. 

The obligations of Seller at the Closing are subject, at the option of Seller, to the satisfaction at or prior to the Closing of the following
conditions. 
 (a) All representations and warranties of Purchaser contained in this Agreement shall be true in all material
respects at and as of the Closing as if such representations and warranties were made at and as of the Closing, and Purchaser shall have performed and satisfied all agreements in all material respects required by this Agreement to be performed and
satisfied by Purchaser at or prior to the Closing. 
 (b) Purchaser shall have materially performed or complied with all
obligations, agreements and covenants contained in this Agreement as to which performance or compliance by Purchaser is required prior to or at the Closing Date. 

(c) Seller shall have received a certificate dated as of the Closing, executed by the President or any Vice President of
Purchaser, to the effect that the statements in Section 9.1(a) and 9.1(b) are true in all material respects at and as of the Closing. 

(d) No order shall have been entered by any court or governmental agency having jurisdiction over the parties or the subject
matter of this contract that restrains or prohibits the purchase and sale contemplated by this Agreement and which remains in effect at the time of Closing, except 

(i) any order affecting a matter with respect to which Seller has been adequately indemnified by Purchaser or 

(ii) any order affecting only a portion of the Assets, which portion of the Assets could be treated as a Casualty Loss in
accordance with Section 3.5. 
 (e) Seller shall have been provided with such documentation or other assurance as Seller
deems necessary that Purchaser has obtained, or executed the required applications to obtain, all bonds, permits, or approvals as may be required for owning or operating the Assets; or as may be necessary to comply with Purchaser’s assumption
of obligations as described in Section 6.1, hereof. 

  
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 (f) Purchaser shall have delivered (or be ready, willing and able to deliver at
Closing) to Seller, all the documents and other items required to be delivered by Purchaser under Section 11.2 as a Closing Obligation of Purchaser. 

Section 9.2 Purchaser’s Conditions. 

The obligations of Purchaser at the Closing are subject, at the option of Purchaser, to the satisfaction at or prior to the Closing of the
following conditions: 
 (a) All representations and warranties of Seller contained in this Agreement shall be true in all
material respects at and as of the Closing as if such representations were made at and as of the Closing, and Seller shall have performed and satisfied all agreements in all material respects required by this Agreement to be performed and satisfied
by Seller at or prior to the Closing. 
 (b) Seller shall have materially performed or complied with all obligations,
agreements and covenants contained in this Agreement as to which performance or compliance by Seller is required prior to or at the Closing Date. 

(c) Purchaser shall have received a certificate dated as of the Closing, executed by the President or any Vice President of
Seller, to the effect that 
 (i) the statements in Section 9.2(a) are true in all material respects at and as of the
Closing, and 
 (ii) the covenants and agreements contained in Article VII have been performed in all material respects. 

(d) No order shall have been entered by any court or governmental agency having jurisdiction over the parties or the subject
matter of this contract that restrains or prohibits the purchase and sale contemplated by this Agreement and which remains in effect at the time of closing, except 

(i) any order affecting a matter with respect to which Purchaser has been adequately indemnified by Seller or 

(ii) any order affecting only a portion of the Assets, which portion of the Assets could be treated as Casualty Loss in
accordance with Section 3.5. 
 (e) Seller shall have delivered (or be ready, willing and able to deliver at Closing) to
Purchaser, the documents and other items required to be delivered by Seller under Section 11.2 as a Closing Obligation of Seller. 

  
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 ARTICLE X 

RIGHT OF TERMINATION AND ABANDONMENT 

Section 10.1 Termination. 

This Agreement and the transactions contemplated hereby may be terminated in the following instances: 

(a) by Seller if the conditions set forth in Section 9.1 are not satisfied or waived as of the Closing Date; 

(b) by Purchaser if the conditions set forth in Section 9.2 are not satisfied or waived as of the Closing Date; 

(c) by Seller if, through no fault of Seller, the Closing does not occur on or before January 31, 2015; 

(d) by Purchaser if, through no fault of Purchaser, the Closing does not occur on or before January 31, 2015; 

(e) by either party as provided in Section 3.7; or 

(f) at any time by the mutual written agreement of Purchaser and Seller and in accordance with any other express provisions of
this Agreement. 
 Provided, however, that no Party shall have the right to terminate this Agreement pursuant to any of the above subsections (a-f) if such
Party or its affiliates are at any time in material breach of any provision of the Agreement. 
 Section 10.2 Liabilities Upon
Termination. 
 If this Agreement is terminated pursuant to Section 10.1(a) or (c) above, or as a result of the negligence,
fault or willful failure of Purchaser to perform its obligations hereunder, Seller as its sole remedy shall be entitled to retain the Performance Deposit, plus any interest earned thereon, as liquidated damages for lost opportunities and not as a
penalty, and Purchaser and Seller agree that such amount is a reasonable estimate of Seller’s loss in the event of such failure by Purchaser due to the difficulty of measuring actual damages. Upon termination of this Agreement by Seller
pursuant to an express right to do so set forth herein, Seller shall be free to enjoy immediately all rights of ownership of the Assets and to sell, transfer, encumber and otherwise dispose of the Assets to any party without any restriction under
this Agreement. If this Agreement is terminated pursuant to Section 10.1(b), (d) or (e) above, or as a result of the negligence, fault or willful failure of Seller to perform its obligations hereunder, Seller shall return the
Performance Deposit to Purchaser plus any interest earned thereon within seven (7) days of receiving written notice from Purchaser of termination of this Agreement. In no event shall either party ever be entitled to consequential or punitive
damages; provided however, that the foregoing exclusion shall not be deemed in any way to limit the retention of the Performance Deposit by Seller as liquidated damages under the circumstances provided for hereinabove. The non-breaching party shall
also be entitled to recover court costs, expert witness fees and reasonable attorney fees, if these shall be required in order to secure the remedies due the non-breaching Party under the terms of this Agreement. 

  
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 ARTICLE XI 

CLOSING MATTERS 

Section 11.1 Time and Place of Closing. 

(a) The purchase by Purchaser and the sale by Seller of the Assets, as contemplated by this Agreement (the
“Closing”), shall, unless otherwise agreed to in writing by Purchaser and Seller, take place at the Denver offices of Seller. The time of the Closing shall be at 10:00 a.m., local time, on or before December 15, 2014. 

(b) The date on which the Closing occurs is referred to herein as the “Closing Date.” 

Section 11.2 Closing Obligations. 

At the Closing the following events shall occur, each being a condition precedent to the others and each being deemed to have occurred
simultaneously with the others: 
 (a) Seller shall execute, acknowledge and deliver to Purchaser 

(i) a General Assignment and Bill of Sale of the Assets in the form of Schedule F-1 attached hereto, 

(ii) assignments, bills of sale and conveyances (in sufficient counterparts to facilitate recording) substantially in the form
of Schedule F-2 (the “Conveyance”) together with any transfer forms to be filed with governmental and tribal agencies conveying the Leases and Wells effective as of the Effective Time to Purchaser, 

(iii) if requested by Purchaser, letters in lieu of transfer orders in a form acceptable to both parties, and 

(iv) deeds, assignments, bills of sale and any other specialized instruments of transfer necessary to convey to or perfect in
Purchaser the Assets other than the Leases and Wells; 
 (v) an executed statement described in Treasury Regulation §
1.1445-2(b)(2) certifying that Seller is not a “foreign person” or a “disregarded entity”; 
 (vi) a
certificate from an authorized officer of Seller certifying on behalf of Seller that the conditions set forth in Section 9.2(a) and Section 9.2(b) have been fulfilled by Seller; 

  
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 (vii) a recordable release of any trust, mortgages, financing statements, fixture
filings and security agreements made by Seller or its Affiliates affecting the Assets; and 
 (viii) funds held in suspense
related to the Assets. 
 (b) Seller and Purchaser shall execute and deliver a preliminary settlement statement (the
“Preliminary Settlement Statement”) prepared by Seller that shall set forth the Estimated Final Purchase Price together with the calculations of all adjustments using for such adjustments the best information available; 

(c) Purchaser shall deliver to Seller the Estimated Final Purchase Price by wire transfer in immediately available funds; 

(d) Seller shall deliver to Purchaser possession of the Assets (including shipping the Records to Purchaser at Purchaser’s
cost); 
 (e) Purchaser shall deliver to Seller the certificate referred to in Section 9.1(c). 

(f) Purchaser shall assume the obligation to disburse all royalty, overriding royalty and other payments due under or with
respect to the Leases to the extent Seller was responsible for such payments prior to the Closing. 
 (g) Seller and
Purchaser shall execute and deliver all other documents or agreements called for herein. 
 ARTICLE XII 

POST-CLOSING OBLIGATIONS 

Section 12.1 Post-Closing Adjustments. 

As soon as practicable after the Closing, but in no event later than one hundred eighty (180) days thereafter, Seller shall prepare and
deliver to Purchaser a final settlement statement (the “Final Settlement Statement”) setting forth each adjustment or payment that was not finally determined as of the Closing and showing the calculation of such adjustments and the
resulting Final Purchase Price. Seller shall make its workpapers and other information available to Purchaser to review in order to confirm the adjustments shown on Seller’s draft. As soon as practicable after receipt of the Final Settlement
Statement, but in no event later than sixty (60) days thereafter, Purchaser shall deliver to Seller a written report containing any changes that Purchaser proposes to make to the Final Settlement Statement. Any failure by Purchaser to deliver
to Seller the written report detailing Purchaser’s proposed changes to the Final Settlement Statement within sixty (60) days following Purchaser’s receipt of the Final Settlement Statement shall be deemed an acceptance by Purchaser of
the Final Settlement Statement as submitted by Seller. The parties shall agree with respect to the changes proposed by Purchaser, if any, no later than sixty (60) days after Seller receives from Purchaser the written report described above

  
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containing Purchaser’s proposed changes. If the Purchaser and the Seller cannot then agree upon the Final Settlement Statement, the determination of the amount of the Final Settlement
Statement shall be submitted to a mutually agreed firm of independent public accountants (the “Accounting Firm”). The determination by the Accounting Firm shall be conclusive and binding on the parties hereto and shall be enforceable
against any party hereto in any court of competent jurisdiction. Any costs and expenses incurred by the Accounting Firm pursuant to this Section 12.1 shall be borne by the Seller and the Purchaser equally. The date upon which such agreement is
reached or upon which the Final Purchase Price is established, shall be herein called the “Final Settlement Date.” In the event 

(a) the Final Purchase Price is more than the Estimated Final Purchase Price, Purchaser shall pay to Seller the amount of such difference, or

 (b) the Final Purchase Price is less than the Estimated Final Purchase Price, Seller shall pay to Purchaser the amount of such difference,

 in either event by wire transfer in immediately available funds. Payment by Purchaser or Seller, as the case may be, shall be within five (5) days
of the Final Settlement Date. 
 Section 12.2 Files and Records. 

Within thirty (30) business days following the Closing Date, Seller shall deliver to Purchaser at Purchaser’s expense the Records, to
the extent not previously delivered. For a period of seven (7) years after the Closing Date, Purchaser shall maintain the Records, and Seller shall have access thereto during normal business hours upon advance written notice to Purchaser to
audit the same in connection with federal, state or local regulatory or tax matters, resolution of existing disputes or contract compliance matters affecting Seller. 

Section 12.3 Further Assurances. 

From time to time after Closing, Seller and Purchaser shall execute, acknowledge and deliver to the other such further instruments, and take
such other action as may be reasonably requested in order more effectively to assure to said party all of the respective properties, rights, titles, interests and estates intended to be assigned and delivered in consummation of the transactions
contemplated by this Agreement. 
 ARTICLE XIII 

ENVIRONMENTAL MATTERS 

Section 13.1 Purchaser Acknowledgment Concerning Possible Contamination of the Assets. 

Purchaser is aware that the Assets have been used for exploration, development, and production of oil and gas and that there may be petroleum,
produced water, wastes, or other materials located on or under the Assets or associated with the Assets. Equipment and sites included in the Assets may contain asbestos, hazardous substances, or naturally-occurring

  
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radioactive materials (“NORM”). NORM may affix or attach itself to the inside of wells, materials, and equipment as scale, or in other forms; the wells, materials, and equipment located
on the Assets or included in the Assets may contain NORM and other wastes or hazardous substances; and NORM-containing material and other wastes or hazardous substances may have been buried, come in contact with the soil, or otherwise been disposed
of on the Assets. Special procedures may be required for the remediation, removal, transportation, or disposal of wastes, asbestos, hazardous substances, and NORM from the Assets. 

Purchaser will assume liability for the assessment, remediation, removal, transportation, and disposal of wastes, asbestos, and hazardous
substances, (including produced water, drilling fluids, NORM, and other wastes) from the Assets, whether present before or after the Effective Time, and associated activities and will conduct these activities in accordance with applicable federal,
state, and local laws, including statutes, regulations, orders, ordinances, and common law, currently enacted or enacted in the future and relating to protection of public health, welfare, and the environment, including those laws relating to
storage, handling, and use of chemicals and other hazardous materials; those relating to the generation, processing, treatment, storage, transport, disposal, cleanup, remediation, or other management of waste materials or hazardous substances of any
kind; and those relating to the protection of environmentally sensitive or protected areas (“Environmental Laws”). 

Section 13.2 Adverse Environmental Conditions. 

(a) Purchaser will have until 5:00 P.M. Denver time on the third day prior to the Closing (not counting the day of Closing) to
notify Seller of any material adverse environmental condition of the Assets that Purchaser finds unacceptable and provide evidence of the condition to Seller. An environmental condition is a material adverse environmental condition
(“Condition”) only if all the following criteria are met: 
 (i) The environmental condition is required to be
remediated at the Effective Time under the Environmental Laws in effect at the Effective Time. 
 (ii) The total of the cost
to remediate each environmental condition identified by Purchaser to levels required by the Environmental Laws in effect at the Effective Time is reasonably estimated to be more than ten thousand dollars ($10,000.00) (net to Seller’s interest).
Environmental conditions may not be aggregated by type or category among more than one well or facility for purposes of meeting this de minimis threshold of $10,000.00. 

(iii) The environmental condition was not disclosed on Schedule G. 

(b) If it determines that a Condition may exist with respect to an Asset, Seller will have until 5:00 P.M. on the third day
prior to the Closing Date (not including the day of Closing) to elect any of the following: 
 (i) adjust the Allocated Value
for an Asset by a mutually acceptable amount reflecting Seller’s proportionate share, based on its working interest, of 

  
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the cost reasonably estimated to remediate a Condition affecting the Asset to the level required by the Environmental Laws in effect at the Effective Time, not to exceed the Allocated Value of
the property, and adjust the Preliminary Purchase Price in accordance with Section 2.4 (b)(viii); 
 (ii) if Purchaser
and Seller mutually agree, Seller shall indemnify the Purchaser for all liability resulting from the Condition not to exceed the Allocated Value of the Asset listed on Schedule B of this Agreement; or 

(iii) assume responsibility for the remediation of the Asset pursuant to an agreement in a form mutually agreeable to the
Parties. 
 (c) If Seller and Purchaser cannot agree to the amount of the costs to remediate a Condition, all information
related to the Condition shall be submitted to Kane Environmental Engineering, an environmental consulting company, which shall determine the remediation amount. 

Section 13.3 Disposal of Materials, Substances, and Wastes; Compliance with Law. 

Purchaser will store, handle, transport, and dispose of or discharge all materials, substances, and wastes from the Assets (including produced
water, drilling fluids, NORM, and other wastes), whether present before or after the Effective Time, in accordance with applicable local, state, and federal laws and regulations. Purchaser will keep records of the types, amounts, and location of
materials, substances, and wastes that are stored, transported, handled, discharged, released, or disposed of onsite and offsite. When any lease terminates, an interest in which has been assigned under this Agreement, Purchaser will undertake
additional testing, assessment, closure, reporting, or remedial action with respect to the Assets affected by the termination as is necessary to satisfy all local, state, or federal requirements in effect at that time and necessary to restore the
Assets. 
 ARTICLE XIV 

MISCELLANEOUS 

Section 14.1 Conduct of Business. 

Seller covenants and agrees that from and after the Execution Date up to Closing Seller shall maintain the Assets in the usual, regular and
ordinary manner consistent with its past practices. 
 Section 14.2 Notices. 

All communications required or permitted under this Agreement shall be in writing and any communication or delivery hereunder shall be deemed
to have been duly made if actually delivered or if mailed by registered or certified mail, postage prepaid, or if sent by overnight courier service, charges prepaid, or if sent by telecopy or facsimile machine, or other electronic communication
device shall be deemed received on the date on which such notice is received by the addressee as evidenced by the confirmation of receipt of the applicable delivery mode, 

  
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addressed to the party being notified as set forth below. Any party may, by written notice so delivered to the other, change the address to which delivery shall thereafter be made. Notices to
Seller and Purchaser shall be made at the addresses set forth below: 
  

	 	(a)	If to Seller, to: 

 Forest Oil Corporation 

707 17th Street, Suite 3600 

Denver, CO 80202 
 FAX:
(303) 812-1445 
 ATTN: General Counsel 
  

	 	(b)	If to Purchaser, to: 

 Camterra Resources Partners, Ltd. 

300 Crescent Court, Suite 880 

Dallas, Texas 75201 
 FAX:
(214) 310-0512 
 ATTN: Zachary Carlile, CEO 

Camterra Resources, Inc., Managing General Partner 

All notices shall be deemed given at the time of receipt by the party to which such notice is addressed. 

Section 14.3 Binding Effect. 

This Agreement shall bind and inure to the benefit of the parties hereto and their respective heirs, successors and permitted assigns. 

Section 14.4 Counterparts. 

This Agreement may be executed in any number of counterparts, which taken together shall constitute one and the same instrument and each of
which shall be considered an original for all purposes. The exchange of copies of this Agreement and of signature pages by facsimile or by electronic image scan transmission in .pdf shall constitute effective execution and delivery of this Agreement
as to the parties and may be used in lieu of the original Agreement for all purposes. 
 Section 14.5 Expenses. 

All expenses incurred by Seller in connection with or related to the authorization, preparation or execution of this Agreement, the conveyances
and the Schedules hereto, and all other matters related to the Closing, including without limitation, all fees and expenses of counsel, engineers, accountants and financial advisors employed by Seller shall be borne solely and entirely by
Seller; and all such expenses incurred by Purchaser shall be borne solely and entirely by Purchaser. 

  
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 Section 14.6 Section Headings. 

The Section headings contained in this Agreement are for convenient reference only and shall not in any way affect the meaning or
interpretation of this Agreement. 
 Section 14.7 Entire Agreement. 

This Agreement, the documents to be executed hereunder, and the Schedules attached hereto constitute the entire agreement between the
parties hereto pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written of the parties pertaining to the subject matter hereof, and there are no warranties,
representations or other agreements between the parties in connection with the subject matter hereof except as specifically set forth herein or in documents delivered pursuant hereto. No supplement, amendment, alteration, modification, waiver or
termination of this Agreement shall be binding unless executed in writing by the parties hereto. All of the Schedules referred to in this Agreement are hereby incorporated in this Agreement by reference and constitute a part of this
Agreement. 
 Section 14.8 Conditions. 

The inclusion in this Agreement of conditions to Seller’s and Purchaser’s obligations at Closing shall not, in and of itself,
constitute a covenant of either Seller or Purchaser to satisfy the conditions to the other party’s obligations at Closing. 

Section 14.9 Governing Law. 

THE VALIDITY OF THE VARIOUS CONVEYANCES AFFECTING THE TITLE TO REAL PROPERTY SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE JURISDICTION IN WHICH SUCH PROPERTY IS SITUATED. THIS AGREEMENT, THE OTHER DOCUMENTS DELIVERED PURSUANT HERETO AND THE LEGAL RELATIONS AMONG THE PARTIES HERETO SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE
OF TEXAS AND THE STATE AND FEDERAL COURTS LOCATED IN THE STATE OF TEXAS SHALL BE THE SOLE VENUE FOR THE RESOLUTION OF ANY DISPUTES ARISING HEREUNDER. 

Section 14.10 Assignment. 

Neither Party may assign all or any portion of its respective rights or delegate any portion of its respective duties hereunder without the
prior written consent of the other Party. 
 Section 14.11 Public Announcements. 

Prior to making any public announcement or statement with respect to the transactions contemplated by this Agreement, the party desiring to
make such public announcement or statement shall consult with the other party hereto and attempt to obtain approval of the other party or parties hereto to the text of a public announcement or statement to be made solely by Seller or Purchaser, as
the case may be; provided, however, if Seller or Purchaser is required by law to make such public announcement or statement, then the same may be made without the approval of the other party; provided further, however, neither party may identify the
other party by name in any such announcement or statement or filing with the Securities and Exchange Commission without the other party’s prior written consent. 

  
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 Section 14.12 Notices After Closing. 

Each of the parties hereto shall notify the others of its receipt, after the Closing Date, of any instrument, notification or other documents
affecting the Assets while owned by such other party or parties. 
 Section 14.13 Waiver of Compliance with Bulk Transfer Laws.

 Purchaser waives compliance with any applicable bulk transfer laws relating to the transactions contemplated by this Agreement. 

Section 14.14 Waiver. 

The parties agree that to the extent required by applicable law, rule or order to be operative the disclaimers of certain warranties contained
in this Section and in the conveyancing documents to be delivered pursuant to this Agreement are “conspicuous” disclaimers for the purposes of any such applicable law, rule or order. SELLER EXPRESSLY DISCLAIMS AND NEGATES ANY WARRANTY AS
TO THE CONDITION OF ANY PERSONAL PROPERTY, EQUIPMENT, FIXTURES AND ITEMS OF MOVABLE PROPERTY COMPRISING ANY PART OF THE ASSETS, INCLUDING: 

(a) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY; 

(b) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE; 

(c) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, 

(d) ANY RIGHTS OF PURCHASER UNDER APPLICABLE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, AND 

(e) ANY CLAIM BY PURCHASER FOR DAMAGE BECAUSE OF DEFECTS, WHETHER KNOWN OR UNKNOWN, IT BEING EXPRESSLY UNDERSTOOD BY PURCHASER
THAT SAID PERSONAL PROPERTY, FIXTURES, EQUIPMENT, AND ITEMS ARE BEING CONVEYED TO PURCHASER “AS IS”, “WHERE IS”, WITH ALL FAULTS, AND IN THEIR PRESENT CONDITION AND STATE OF REPAIR AND THAT PURCHASER WILL MAKE, PRIOR TO CLOSING,
SUCH INSPECTIONS THEREOF AS PURCHASER DEEMS APPROPRIATE. 
 Except as otherwise expressly set forth herein, Seller also expressly disclaims and negates any
implied or express warranty as to the accuracy of any of the information furnished with respect to the existence or extent of reserves or the value of the Assets based thereon or the condition or state of repair of any of the Assets (it being
understood that all estimates of quantities of oil and gas reserves on which Purchaser has relied or is relying have been derived by individual evaluation of Purchaser). Purchaser EXPRESSLY WAIVES THE PROVISIONS OF

  
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CHAPTER XVII, SUBCHAPTER E, SECTION 17.41 THROUGH 17.63, INCLUSIVE (OTHER THAN SECTION 17.555, WHICH IS NOT WAIVED), VERNON’S TEXAS CODE ANNOTATED, BUSINESS AND COMMERCE CODE (the
“Deceptive Trade Practices Act”). 
 Section 14.15 Amendment. 

This Agreement may be amended only by an instrument in writing executed by all of the Parties and expressly identified as an amendment or
modification hereof. 
 Section 14.16 No Punitive and/or Consequential Damages. 

Neither party shall be liable for any punitive, remote, indirect and/or consequential damages that are attributable to any term or provision or
other matter under this Agreement. 
 Section 14.17 Severability. 

If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of Law or public policy, all
other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any adverse manner to any Party. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in an
acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 
 Section 14.18
Certain Agreements with Respect to Debt Providers. 
 (a) The Seller and Purchaser agree on behalf of their
affiliates, stockholders, representatives (collectively “Related Parties”) that the Debt Providers (being JPMorgan Chase Bank, N.A., and its affiliates and assigns) and their affiliates, stockholders and representatives and each of their
successors and assigns (i) shall be subject to no liability or claims by the Seller and/or Purchaser and Related Parties arising out of or relating to this Agreement, the financing, or transactions contemplated hereby or performance of services
by Debt Providers or their affiliates or representatives with respect to the foregoing and (ii) are express third party beneficiaries for purposes of this provision (which may not be modified as to any financing source without the Debt
Providers’ prior written consent). 
 (b) Nothing in this Agreement shall entitle any person other than the Seller
and/or Purchaser to any claim, cause of action, remedy or right of any kind, except the rights expressly provided in Section 10.1, Right of Termination and Abandonment and except that the Debt Providers and their respective current,
former or future directors, officers, general or limited partners, stockholders, members, managers, controlling persons, affiliates, employees or representatives shall be third party beneficiaries of Section 10.1, Rights of Termination and
Abandonment; Section 14.9, Governing Law; and this Section 14.18, Certain Agreements with Respect to Debt Providers. 

  
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 (c) The parties further agree that any claims, suits or demands brought against
any or all Debt Providers shall be subject to the jurisdiction and governed by the internal laws of the state of New York and for purposes solely of these matters, the state and federal courts of New York shall be the sole venue. Additionally, as to
the particular matters in this provision, the parties waive all rights to a jury trial. 
 Signature Page Follows 

  
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	SELLER:	 	FOREST OIL CORPORATION	  	
				
		 	By:	 	 /s/ Victor A. Wind
	  	
		 	Name:	 	Victor A. Wind	  	
		 	Title:	 	Executive Vice President and Chief Financial Officer	  	

  
 43 

							
	PURCHASER:	  	CAMTERRA RESOURCES PARTNERS, LTD.,	 	
		  	a Texas Limited Partnership	 	
		  	By:	 	Camterra Resources, Inc.,	 	
		  		 	a Texas Corporation	 	
		  	Its:	 	Managing General Partner	 	
				
		  	By:	 	 /s/ Zachary Q. Carlile
	 	
		  	Name:	 	Zachary Q. Carlile	 	
		  	Title:	 	Chief Executive Office	 	

  
 44

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