Document:

Exhibit 10.4

 

FORM OF

 

EMPLOYEE MATTERS AGREEMENT

 

BY AND AMONG

 

FOREST OIL CORPORATION,

 

CANADIAN FOREST OIL LTD.,

 

AND

 

LONE PINE RESOURCES INC.

 

Dated as of                     , 2011

 

 

TABLE OF CONTENTS

 

	
 
    	
 
    	
Page
    
	
 
    	
 
    
	
ARTICLE I DEFINITIONS
    	
1
    
	
 
    	
 
    
	
ARTICLE II GENERAL   PRINCIPLES
    	
4
    
	
A.
    	
Assumption and Retention of Lone Pine   Group Liabilities
    	
4
    
	
B.
    	
Assumption and Retention of Forest Group Liabilities
    	
4
    
	
C.
    	
No Obligation to Maintain Plans
    	
4
    
	
D.
    	
Participation by Lone Pine Group in Forest Benefit Plans   following the IPO Closing Date and the Spin-Off Date
    	
4
    
	
E.
    	
Severance Agreement
    	
5
    
	
 
    	
 
    	
 
    
	
ARTICLE III LONE PINE   BENEFIT PLANS
    	
5
    
	
 
    	
 
    
	
ARTICLE IV WORKERS’   COMPENSATION LIABILITIES
    	
5
    
	
 
    	
 
    
	
ARTICLE V EQUITY-BASED   COMPENSATION
    	
5
    
	
A.
    	
Cessation of Awards to Lone Pine Employees under Forest   Equity Plans
    	
5
    
	
B.
    	
Forest Options
    	
6
    
	
C.
    	
Phantom Stock Units
    	
7
    
	
D.
    	
Restricted Stock Awards
    	
8
    
	
E.
    	
Performance Unit Awards
    	
8
    
	
F.
    	
Employee Stock Purchase Plan
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE VI ADMINISTRATIVE   PROVISIONS
    	
9
    
	
A.
    	
Administrative Expenses Not Chargeable to   a Trust
    	
9
    
	
B.
    	
Sharing of Participant Information
    	
10
    
	
C.
    	
Beneficiary Designation
    	
10
    
	
D.
    	
Requests for Regulatory Approvals and   Opinions
    	
10
    
	
E.
    	
Fiduciary Matters
    	
10
    
	
F.
    	
Administrative Services
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   EMPLOYMENT-RELATED MATTERS
    	
10
    
	
A.
    	
Personnel Records
    	
10
    
	
B.
    	
Confidentiality and Proprietary   Information
    	
11
    
	
C.
    	
No Third-Party Beneficiaries
    	
11
    
	
D.
    	
Employment Litigation
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII GENERAL   PROVISIONS
    	
11
    
	
A.
    	
Effect if IPO and/or Spin-Off Does Not   Occur
    	
11
    
	
B.
    	
Relationship of Parties
    	
11
    
	
C.
    	
Guarantees
    	
11
    
	
D.
    	
Indemnification
    	
11
    
	
E.
    	
Dispute Resolution
    	
12
    
	
F.
    	
Governing Law
    	
12
    
	
G.
    	
Assignment
    	
12
    

 

i

 

	
H.
    	
Severability
    	
12
    
	
I.
    	
Interpretation
    	
12
    
	
J.
    	
Amendment
    	
12
    
	
K.
    	
Termination
    	
12
    
	
L.
    	
Conflict
    	
13
    
	
M.
    	
Counterparts
    	
13
    

 

ii

 

EMPLOYEE MATTERS AGREEMENT

 

This EMPLOYEE MATTERS AGREEMENT (this “Agreement”) is entered into on                           , 2011, by and among Forest Oil Corporation, a New York corporation (“Forest”), Canadian Forest Oil Ltd., an Alberta corporation (“CFOL”), and Lone Pine Resources Inc., a Delaware corporation (“Lone Pine”).  Capitalized terms used herein (other than the formal names of Forest Benefit Plans (as defined below)) and not otherwise defined, shall have the respective meanings assigned to them in Article I hereof.

 

RECITALS

 

WHEREAS, Forest owns all of the currently issued and outstanding common stock of Lone Pine;

 

WHEREAS, Lone Pine intends to consummate an initial public offering (the “IPO”) of its common stock;

 

WHEREAS, in connection with the IPO, Forest intends to contribute its direct and indirect ownership interests in CFOL to Lone Pine, which will result in Lone Pine owning, directly and indirectly, 100% of the equity interests in CFOL;

 

WHEREAS, as soon as practicable following the completion of the IPO and the expiration or waiver of any applicable lock-up period, Forest currently intends to distribute, or spin-off, all of the remaining shares of Lone Pine common stock beneficially owned by Forest to the shareholders of Forest (the “Spin-Off”); and

 

WHEREAS, as part of the foregoing, the parties desire to enter into this Agreement to allocate between and among them the assets, liabilities and responsibilities with respect to certain employee compensation, benefits plan and other employee-related matters;

 

NOW, THEREFORE, in consideration of the foregoing and the covenants and agreements set forth below, the parties hereto agree as follows:

 

ARTICLE I
 DEFINITIONS

 

Wherever used in this Agreement, the following terms shall have the meanings indicated below, unless a different meaning is plainly required by the context. The singular shall include the plural, unless the context indicates otherwise.

 

A.            “Ancillary Agreements” means all of the underlying agreements, documents and instruments referred to, contemplated by, or made a part of the Separation and Distribution Agreement.

 

B.            “Code” means the Internal Revenue Code of 1986, as amended, or any successor statute.

 

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C.            “Compensation Committee” means the Compensation Committee of the Board of Directors of Forest.

 

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

 

E.             “Forest Benefit Plan” means any Plan sponsored, maintained or contributed to by any member of the Forest Group immediately prior to the consummation of the IPO.

 

F.             “Forest Common Stock” means a share of Forest’s common stock, par value $0.10 per share.

 

G.            “Forest Employee” means an active employee or an employee on vacation or on leave of absence who, on the IPO Closing Date, is employed by or will be employed by any member of the Forest Group.

 

H.            “Forest Equity Plans” means the Forest Oil Corporation Stock Incentive Plan, the Forest Oil Corporation 2001 Stock Incentive Plan, and the Forest Oil Corporation 2007 Stock Incentive Plan.

 

I.              “Forest Group” has the meaning assigned to that term in the Separation and Distribution Agreement.

 

J.             “Former Forest Employee” means, as of the IPO Closing Date, any individual who, prior to the IPO Closing Date, terminated employment with a member of the Forest Group and did not commence employment with a member of the Lone Pine Group.

 

K.            “Former Lone Pine Employee” means as of the IPO Closing Date, any individual who, prior to the IPO Closing Date, terminated employment with a member of the Lone Pine Group and did not commence employment with a member of the Forest Group.

 

L.             “IPO” is defined in the Recitals hereto.

 

M.           “IPO Closing Date” has the meaning assigned to that term in the Separation and Distribution Agreement.

 

N.            “Liabilities” has the meaning assigned to that term in the Separation and Distribution Agreement.

 

O.            “Lone Pine Benefit Plan” means any Plan sponsored, maintained or contributed to by any member of the Lone Pine Group immediately prior to the consummation of the IPO other than any Forest Benefit Plan.

 

P.             “Lone Pine Employee” means an active employee or an employee on vacation or on leave of absence who, on the IPO Closing Date, is employed by or will be employed by any member of the Lone Pine Group.

 

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Q.            “Lone Pine Group” has the meaning assigned to that term in the Separation and Distribution Agreement.

 

R.            “Option” means an option to purchase Forest Common Stock granted pursuant to a Forest Equity Plan.

 

S.             “Performance Unit Award” means a performance unit award granted under the Forest Oil Corporation 2007 Stock Incentive Plan.

 

T.            “Person” means an individual, a partnership, a corporation, a limited liability company, an association, a joint stock company, a trust, a joint venture, an unincorporated organization, and a governmental entity or any department, agency or political subdivision thereof.

 

U.            “Phantom Stock Unit” means a phantom stock unit award granted under a Forest Equity Plan.

 

V.            “Plan” means each (i) “employee benefit plan,” as such term is defined in Section 3(3) of ERISA, (ii) plan that would be an employee benefit plan described in clause (i) of this sentence if it was subject to ERISA, such as foreign plans and plans for directors, (iii) equity bonus, equity ownership, equity option, restricted equity, equity purchase, equity appreciation rights, phantom equity or other equity-based compensation plan or arrangement, (iv) bonus plan or arrangement, incentive award plan or arrangement, deferred compensation agreement or arrangement, change in control or retention plan or arrangement, executive compensation or supplemental income arrangement, personnel policy, vacation policy, severance pay plan, policy or agreement, consulting agreement or employment agreement, and (v) other employee benefit plan, agreement, arrangement, program, practice or understanding.

 

W.           “Post-Spin FMV per Share” means an amount equal to the average of the daily closing price per share of Forest Common Stock on the NYSE Composite Transactions Reporting System for the first five trading days immediately following the Spin-Off Date.

 

X.            “Pre-Spin FMV per Share” means an amount equal to the average of the daily closing price per share of Forest Common Stock on the NYSE Composite Transactions Reporting System for the last five trading days immediately preceding the Spin-Off Date.

 

Y.            “Restricted Stock Award” means a restricted stock award granted under a Forest Equity Plan.

 

Z.            “Separation and Distribution Agreement” means the Separation and Distribution Agreement, of even date herewith, by and among Forest, CFOL and Lone Pine.

 

AA.        “Spin-Off” is defined in the Recitals hereto.

 

BB.                             “Spin-Off Date” means the effective date of the Spin-Off.

 

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ARTICLE II
 GENERAL PRINCIPLES

 

A.            Assumption and Retention of Lone Pine Group Liabilities.  Except as specified otherwise in this Agreement or as mutually agreed upon by Lone Pine and Forest from time to time, effective as of the IPO Closing Date, Lone Pine and CFOL shall, or shall cause one or more members of the Lone Pine Group to, assume or retain, as applicable, and pay, perform, fulfill and discharge, in accordance with their respective terms, (i) all Liabilities of, or relating to, Lone Pine Employees, Former Lone Pine Employees, Forest Employees and Former Forest Employees with respect to, arising out of, or resulting from future, present or former employment with the Lone Pine Group (including, without limitation, Liabilities relating to, arising out of, or resulting from Lone Pine Benefit Plans), and (ii) any other Liabilities or obligations expressly assigned to any member of the Lone Pine Group under this Agreement.

 

B.            Assumption and Retention of Forest Group Liabilities.  Except as specified otherwise in this Agreement or as mutually agreed upon by Forest and Lone Pine from time to time,  effective as of the IPO Closing Date, Forest shall, or shall cause one or more members of the Forest Group to, assume or retain, as applicable, and pay, perform, fulfill and discharge, in accordance with their respective terms, (i) all Liabilities of, or relating to, Forest Employees, Former Forest Employees, Lone Pine Employees and Former Lone Pine Employees relating to, arising out of, or resulting from future, present or former employment with the Forest Group (including, without limitation, Liabilities relating to, arising out of, or resulting from Forest Benefit Plans), and (ii) any other Liabilities or obligations expressly assigned to any member of the Forest Group under this Agreement.

 

C.            No Obligation to Maintain Plans.  Except as specified otherwise in this Agreement, nothing in this Agreement shall preclude the Forest Group or the Lone Pine Group at any time from amending, merging, modifying, terminating, eliminating, reducing, or otherwise altering in any respect any of their respective Plans, any benefit under any such Plan or any trust associated with such a Plan, insurance policy or funding vehicle related to any such Plan, or any employment or other service arrangement with their respective employees or vendors (to the extent permitted by law).

 

D.            Participation by Lone Pine Group in Forest Benefit Plans following the IPO Closing Date and the Spin-Off Date.   Except as specified otherwise in this Agreement, as of the IPO Closing Date, all Lone Pine Employees shall cease to participate in all Forest Benefit Plans except that, subject to Section V.A., the Lone Pine Employees shall remain eligible to participate in the Forest Equity Plans and Forest’s 1999 Employee Stock Purchase Plan (collectively, the “Continuing Plans”); provided, however, that (i) any such participation in the Continuing Plans shall be at the expense of the Lone Pine Group (or the Lone Pine Employees, as applicable) unless otherwise agreed to by Forest and (ii) subject to any contractual rights a Lone Pine Employee may have, Forest may at any time and from time to time amend, modify or terminate the participation rights of Lone Pine Employees in any Continuing Plan.  Except as specified otherwise in this Agreement, as of the Spin-Off Date, all Lone Pine Employees shall cease to participate in all Forest Benefit Plans, including the Continuing Plans, and all equity-based compensation awards held by Lone Pine Employees that are outstanding as of the Spin-Off Date shall be adjusted as provided in Article V below.  With respect to any annual incentive award

 

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under a Forest Annual Incentive Plan that is outstanding on the IPO Closing Date and held by a Lone Pine Employee employed by the Lone Pine Group as of the Spin-Off Date, Lone Pine and CFOL shall, or shall cause one or more members of the Lone Pine Group to, make a cash payment to such Lone Pine Employee as soon as administratively practicable after the Spin-Off Date for the pro rata amount (based on the number of days in the applicable year that such Lone Pine Employee participated in such Forest Annual Incentive Plan prior to the IPO Closing Date) of the annual incentive payment that such employee would be entitled to receive under such Forest Annual Incentive Plan assuming a “target” achievement of applicable performance measures as of the IPO Closing Date.

 

E.             Severance Agreement.  On or before the IPO Closing Date, Lone Pine shall enter into a severance agreement with its President and Chief Executive Officer, which severance agreement shall, among other things, terminate that certain Severance Agreement dated as of August 11, 2008, as amended, by and between such individual and Forest.  Lone Pine intends to enter into severance agreements with each of its other executive officers and certain key Lone Pine Employees as selected by Lone Pine.

 

ARTICLE III
 LONE PINE BENEFIT PLANS

 

The Lone Pine Group sponsors and maintains the Lone Pine Benefit Plans in which the Lone Pine Employees are eligible to participate subject to the terms and conditions of such Plans.  The Lone Pine Group shall continue to sponsor and maintain the Lone Pine Benefit Plans following the IPO Closing Date on such terms and conditions as the Lone Pine Group may determine from time to time.  Subject to the eligibility requirements of the Lone Pine Benefit Plans, Lone Pine Employees shall continue to, or become eligible to, participate, as applicable, in the Lone Pine Benefit Plans as of the IPO Closing Date on such terms and conditions as the Lone Pine Group may determine from time to time following the IPO Closing Date.

 

ARTICLE IV
 WORKERS’ COMPENSATION LIABILITIES

 

All workers’ compensation Liabilities relating to, arising out of, or resulting from any claim by a Forest Employee, Former Forest Employee, Lone Pine Employee or Former Lone Pine Employee that results from an accident, incident or event occurring, or from an occupational disease which becomes manifest, at, before or after the IPO Closing Date shall be retained or assumed by (A) Forest or one or more other members of the Forest Group, as applicable based on the employment relationship in each case, in respect of Forest Employees and Former Forest Employees or (B) Lone Pine, CFOL or one or more other members of the Lone Pine Group, as applicable based on the employment relationship in each case, in respect of Lone Pine Employees and Former Lone Pine Employees.

 

ARTICLE V
 EQUITY-BASED COMPENSATION

 

A.            Cessation of Awards to Lone Pine Employees under Forest Equity Plans.  Effective as of the IPO Closing Date, Lone Pine Employees shall cease to be eligible to receive

 

5

 

awards pursuant to the Forest Equity Plans and the participation in the Forest Equity Plans by Lone Pine Employees shall be limited to the continuation of outstanding awards held by such employees under the Forest Equity Plans as of the IPO Closing Date.  The continuation of each such outstanding award shall be subject to the terms and conditions of the applicable Forest Equity Plan and any agreement or notice granting such award.

 

B.            Forest Options.  (a)  Adjustment of Options.  On the Spin-Off Date, each Option outstanding on the Spin-Off Date shall be adjusted as follows:

 

(1)           Exercise Price.  The per share exercise price of the Option immediately after the Spin-Off (the “New Exercise Price”) shall be equal to the product (rounded up to the nearest whole cent) of (i) the per share exercise price of the Option immediately prior to the Spin-Off (the “Pre-Spin Exercise Price”) multiplied by (ii) a fraction, the numerator of which shall be equal to the Post-Spin FMV per Share, and the denominator of which shall be equal to the Pre-Spin FMV per Share.

 

(2)           Number of Shares.  The number of shares of Forest Common Stock subject to the Option immediately after the Spin-Off shall be equal to the product (rounded down to the nearest whole share) of (i) the number of shares of Forest Common Stock subject to the Option immediately prior to the Spin-Off multiplied by (ii) a fraction, the numerator of which shall be equal to the Pre-Spin Exercise Price and the denominator of which shall be equal to the New Exercise Price.

 

With respect to each Option outstanding on the Spin-Off Date that is held by a resident of Canada for the purposes of the Income Tax Act (Canada) or an individual who received such Option by virtue of services performed in Canada, the adjustments described in the preceding provisions of this Section V.B.(a) shall be accomplished through the exchange of such Option for a new option to purchase Forest Common Stock, which new option shall (x) be granted under the same Forest Equity Plan as the original Option and (y) have the same terms and conditions as the original Option except that the per share exercise price of the new option and the number of shares of Forest Common Stock subject to the new option shall be determined as if the original Option was adjusted as provided above.

 

(b)           Exercise by Lone Pine Employees.  Each Lone Pine Employee who is employed by the Lone Pine Group on the Spin-Off Date shall be considered to have terminated employment on such date for a reason other than death, disability, retirement or cause (as described in the applicable Option agreement) with respect to each outstanding Option held by such employee as of such date (and the applicable Forest Equity Plan as it relates to such Option); provided, however, that if such employee is eligible for retirement as of the Spin-Off Date under the terms of the Option agreement evidencing any such Option, then such employee shall be treated as having terminated employment as of the Spin-Off Date due to retirement for purposes of such Option.  The exercise of a vested Option on or after the Spin-Off Date by a Lone Pine Employee who is employed by the Lone Pine Group on such date shall be subject to the terms of the applicable Forest Equity Plan and Option agreement evidencing such Option after giving effect to the foregoing provisions of this Section V.B.

 

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(c)           Payment of Exercise Price, Withholding Taxes and Reporting.  Upon the exercise of an Option on or after the IPO Closing Date, regardless of the holder thereof, the exercise price shall be paid to (or otherwise satisfied to the satisfaction of) Forest in accordance with the terms of the Option, and Forest shall be solely responsible for the issuance of Forest Common Stock, for ensuring the collection of the employee portion of all applicable withholding tax on behalf of the employing entity of such holder and for ensuring the remittance of such withholding taxes to the employing entity of such holder.  Upon the exercise of an Option on or after the IPO Closing Date, regardless of the holder thereof, the most recent employer of the holder of the Option at the time of exercise (or his or her decedent, as applicable) shall be responsible for the satisfaction of all tax reporting requirements in respect of such exercise, shall be responsible for remitting the appropriate withholding amounts to the appropriate taxing authorities, and shall be entitled to the benefit of any tax deduction in respect of the exercise of all such Options.

 

C.            Phantom Stock Units.  (a)  Adjustment of Phantom Stock Units.  On the Spin-Off Date, each Phantom Stock Unit outstanding on the Spin-Off Date shall be adjusted pursuant to the applicable method set forth below:

 

(1)           Cash-settled Phantom Stock Units.  Each Phantom Stock Unit outstanding on the Spin-Off Date that is required to be settled with a cash payment shall be adjusted on the Spin-Off Date by adjusting the number of shares of Forest Common Stock underlying such Phantom Stock Unit.  The number of shares of Forest Common Stock underlying such Phantom Stock Unit immediately after the Spin-Off shall be equal to the product (rounded down to the nearest whole share) of (i) the number of shares of Forest Common Stock underlying such Phantom Stock Unit immediately prior to the Spin-Off multiplied by (ii) a fraction, the numerator of which shall be equal to the Pre-Spin FMV per Share and the denominator of which shall be equal to the Post-Spin FMV per Share.

 

(2)           Cash or Stock-settled Phantom Stock Units.  The Compensation Committee shall have the authority at any time prior to the Spin-Off Date to determine whether certain outstanding Phantom Stock Units as of the Spin-Off Date that may be settled in cash or in shares of Forest Common Stock shall be settled in cash or such shares.  On the Spin-Off Date, the Compensation Committee will designate each of such awards that is outstanding on the Spin-Off Date as either a cash-settled Phantom Stock Unit or a stock-settled Phantom Stock Unit, in its sole discretion.  In the event that the award is designated as a cash-settled Phantom Stock Unit, then the award will be adjusted as described in Section V.C.(a)(1) above.  In the event that the award is designated as a stock-settled Phantom Stock Unit, then no adjustment shall be made to the award but, rather, a distribution in connection with the Spin-Off shall be made with respect to such award in one of the following forms as determined by the Compensation Committee on or before the Spin-Off Date in its sole discretion: (x) Forest will deliver to the holder of such award a number of shares of common stock of Lone Pine (rounded down to the nearest whole number) equal to the number of such shares such holder would have received in the Spin-Off if such holder held actual shares of Forest Common Stock equal to the number of shares of Forest Common Stock underlying such Phantom Stock Unit immediately prior to the Spin-Off; or (y) the employing entity of the holder of such award as of the Spin-Off Date will deliver (or cause to be delivered) to such holder cash in an amount equal to the fair market value (based on the closing price per share on the Spin-Off Date (or, if there is no trading on the Spin-Off Date, on

 

7

 

the first following date on which there is trading)) of the number of shares of Lone Pine common stock described in clause (x) of this sentence.

 

(b)           Vesting of Lone Pine Employee on the Spin-Off Date.  Each Phantom Stock Unit outstanding on the Spin-Off Date that is held by a Lone Pine Employee who is employed by the Lone Pine Group on the Spin-Off Date will be 100% fully vested effective as of the Spin-Off Date.

 

(c)           Payment, Withholding Taxes and Reporting.  From and after the IPO Closing Date, Lone Pine and CFOL shall, or shall cause one or more members of the Lone Pine Group to, be solely responsible for the settlement of all Phantom Stock Units held by Lone Pine Employees that are to be settled in cash pursuant to their terms, as determined by the Compensation Committee with respect to any such settlement required prior to the Spin-Off Date or pursuant to the provisions of Section V.C.(a), and for ensuring the satisfaction of all related applicable tax withholding, remittance and reporting requirements.  From and after the IPO Closing Date, Forest shall be solely responsible for the settlement of all Phantom Stock Units held by Lone Pine Employees that are to be settled in shares of Forest Common Stock as determined by the Compensation Committee with respect to any such settlement required prior to the Spin-Off Date or as described in Section V.C.(a)(2).  With respect to any settlement of Phantom Stock Units in shares of Forest Common Stock as described in the preceding sentence, (1) Forest shall be solely responsible for the issuance of Forest Common Stock, for ensuring the collection of the employee portion of all applicable withholding tax on behalf of the employing entity of the holder and for ensuring the remittance of such withholding taxes to the employing entity of the holder, and (2) the most recent employer of the holder of the Phantom Stock Units shall be responsible for the satisfaction of all tax reporting requirements in respect of such settlement and shall be responsible for remitting the appropriate withholding amounts to the appropriate taxing authorities.

 

D.            Restricted Stock Awards.  No adjustment will be made to Restricted Stock Awards that are outstanding on the Spin-Off Date in connection with the Spin-Off.  Each Restricted Stock Award will continue to be governed by the terms and conditions of the applicable Forest Equity Plan and the individual award agreement governing such Restricted Stock Award.  Each individual who holds an outstanding Restricted Stock Award on the Spin-Off Date will be treated as the owner of the underlying shares of Forest Common Stock and will receive distributions relating to such shares on the same basis as the holders of unrestricted Forest Common Stock generally in connection with the Spin-Off.

 

E.             Performance Unit Awards.  (a)  Adjustment of Performance Unit Awards.  On the Spin-Off Date, each Performance Unit Award outstanding on the Spin-Off Date shall be adjusted as follows:

 

(1)           Initial Value.  The per share “Initial Value” that shall apply with respect to such Performance Unit Award immediately after the Spin-Off (the “New Initial Value”) shall be equal to the product (rounded up to the nearest whole cent) of (i) the per share “Initial Value” in effect under the Performance Unit Award immediately prior to the Spin-Off (the “Pre-Spin Initial Value”) multiplied by (ii) a fraction, the numerator of which shall be equal to the Post-

 

8

 

Spin FMV per Share, and the denominator of which shall be equal to the Pre-Spin FMV per Share.

 

(2)           Number of Performance Units.  The number of performance units subject to such Performance Unit Award immediately after the Spin-Off shall be equal to the product (rounded down to the nearest whole share) of (i) the number of performance units subject to such Performance Unit Award immediately prior to the Spin-Off multiplied by (ii) a fraction, the numerator of which shall be equal to the Pre-Spin Initial Value and the denominator of which shall be equal to the New Initial Value.

 

(b)           Settlement of Performance Unit Awards held by Lone Pine Employees.  Performance Unit Awards that are outstanding and held by Lone Pine Employees as of the Spin-Off Date will be adjusted as provided in Section V.E.(a) above and shall be governed by the terms and conditions of the individual award agreements that govern such Performance Unit Awards.  Accordingly, the performance period applicable to such Performance Unit Awards will end on the Spin-Off Date, and the holder will receive a settlement with respect to such Performance Unit Awards in shares of Forest Common Stock (which shall be the responsibility of Forest) based on the number of performance units that are considered “earned” pursuant to the terms of the applicable award agreements as of the Spin-Off Date, calculated using the actual achievement of the performance metrics applicable to such Performance Unit Awards.

 

F.             Employee Stock Purchase Plan.  Through the date that Lone Pine or CFOL, as applicable, shall cease to be a “subsidiary corporation” (as defined in Section 424(f) of the Code) with respect to Forest or such earlier date after the IPO that Forest shall determine in its sole discretion, employees of Lone Pine and CFOL shall remain eligible to participate in Forest’s 1999 Employee Stock Purchase Plan.  As of the date Lone Pine or CFOL, as applicable, shall cease to be such a “subsidiary corporation,” the employees of Lone Pine and CFOL, as applicable, shall be treated as terminated Forest employees under the terms of Forest’s 1999 Employee Stock Purchase Plan.

 

ARTICLE VI
 ADMINISTRATIVE PROVISIONS

 

A.            Administrative Expenses Not Chargeable to a Trust.  Effective as of the IPO Closing Date, to the extent not charged pursuant to the Separation and Distribution Agreement or an Ancillary Agreement, and to the extent not otherwise agreed to in writing by Forest and Lone Pine, and to the extent not chargeable to a trust established in connection with a Plan, Lone Pine and CFOL shall be responsible, through either direct payment or reimbursement to Forest in accordance with the Separation and Distribution Agreement and/or the Ancillary Agreements, for their allocable share of actual third party and/or vendor costs and expenses incurred by Forest and additional costs and expenses, subject to the methodology reasonably agreed upon by Forest and Lone Pine, in the administration of (a) the Forest Benefit Plans while employees of any member of the Lone Pine Group participate in such Forest Benefit Plans, and (b) the Lone Pine Benefit Plans, to the extent Forest procures, prepares, implements and/or administers such Lone Pine Benefit Plans.

 

9

 

B.            Sharing of Participant Information.  Forest, Lone Pine and CFOL shall share, or cause to be shared to the extent permitted under applicable law, all participant information that is necessary or appropriate for the efficient and accurate administration of each of the Forest Benefit Plans and the Lone Pine Benefit Plans during the respective periods applicable to such Plans as Forest and Lone Pine may mutually agree. Forest, Lone Pine and CFOL and their respective authorized agents shall, subject to applicable laws of confidentiality and data protection, be given reasonable and timely access to, and may make copies of, all information relating to the subjects of this Agreement in the custody of another party or its agents, to the extent necessary or appropriate for such administration.

 

C.            Beneficiary Designation.  To the extent applicable, all beneficiary designations made by Lone Pine Employees under the Forest Benefit Plans shall be transferred to and be in full force and effect under the corresponding Lone Pine Benefit Plans, in accordance with the terms of each such applicable Lone Pine Benefit Plan, until such beneficiary designations are replaced or revoked by the Lone Pine Employee who made the beneficiary designation.

 

D.            Requests for Regulatory Approvals and Opinions.  The parties hereto shall make such applications to regulatory agencies as may be necessary or appropriate to implement the provisions of this Agreement.  The parties hereto shall cooperate fully with one another on any issue relating to the transactions contemplated by this Agreement for which Forest, Lone Pine and/or CFOL elects to seek a determination letter, private letter ruling or other approval or opinion from a governmental authority or regulatory agency.

 

E.             Fiduciary Matters.  Forest, Lone Pine and CFOL each acknowledge that actions contemplated to be taken pursuant to this Agreement may be subject to fiduciary duties or standards of conduct under ERISA or other applicable law, and that no party shall be deemed to be in violation of this Agreement if such party fails to comply with any provisions hereof based upon such party’s good faith determination that to do so would violate such a fiduciary duty or standard.

 

F.             Administrative Services.  Forest shall provide certain administrative services to the Lone Pine Group during the period between the IPO Closing Date and the Spin-Off Date in conjunction with both the Forest Benefit Plans and the Lone Pine Benefit Plans relating to equity-based and other compensation in such manner as Forest and Lone Pine may mutually agree.  Lone Pine, CFOL and the other members of the Lone Pine Group shall reimburse Forest for any and all direct and indirect costs associated with such services as agreed to by the parties in the Separation and Distribution Agreement and/or an Ancillary Agreement.

 

ARTICLE VII
 EMPLOYMENT-RELATED MATTERS

 

A.            Personnel Records.  Subject to applicable laws on confidentiality and data protection, Forest shall deliver to Lone Pine or CFOL prior to the IPO Closing Date (or such other date as Forest and Lone Pine may agree), personnel records of Lone Pine Employees to the extent such records relate to Lone Pine Employees’ active employment by, leave of absence from, or termination of employment with the Forest Group.

 

10

 

B.            Confidentiality and Proprietary Information.  No provision of the Separation and Distribution Agreement or any Ancillary Agreement shall be deemed to release any individual for any violation of any Forest non-competition guidelines or any agreement or policy pertaining to confidential or proprietary information of any member of the Forest Group, or otherwise relieve any individual of his or her obligations under such non-competition guideline, agreement, or policy.

 

C.            No Third-Party Beneficiaries.  No provision of this Agreement, the Separation and Distribution Agreement, or any Ancillary Agreement shall be construed to create any right or accelerate entitlement to any compensation or benefit whatsoever on the part of any Forest Employee, Lone Pine Employee, Former Forest Employee, Former Lone Pine Employee or other former, present or future employee of any member of the Forest Group or the Lone Pine Group under any Forest Benefit Plan or Lone Pine Benefit Plan or otherwise.

 

D.            Employment Litigation.  The Lone Pine Group shall have the sole responsibility for all employment-related claims that exist, or come into existence, on or after the IPO Closing Date relating to, arising out of, or resulting from any individual’s employment with the Lone Pine Group, except that Forest shall be responsible for any such claims relating to, arising out of, or resulting from the Forest Benefit Plans to the extent not assumed or retained by the Lone Pine Group hereunder.

 

ARTICLE VIII
 GENERAL PROVISIONS

 

A.            Effect if IPO and/or Spin-Off Does Not Occur.  Subject to Section VIII.J., if the IPO and/or Spin-Off does not occur, then all actions and events that are, under this Agreement, to be taken or occur effective as of the IPO Closing Date or the Spin-Off Date, respectively, or otherwise in connection with the IPO or the Spin-Off, respectively, shall not be taken or occur except to the extent specifically agreed otherwise by the parties hereto.

 

B.            Relationship of Parties.  Nothing in this Agreement shall be deemed or construed by the parties or any third party as creating the relationship of principal and agent, partnership or joint venture between the parties, the understanding and agreement being that no provision contained herein, and no act of the parties, shall be deemed to create any relationship between the parties other than the relationship set forth herein.

 

C.            Guarantees.  Forest shall cause to be performed and hereby guarantees the performance of any and all actions of each of the members of the Forest Group which such actions are necessary or appropriate to effectuate the provisions of this Agreement.  Lone Pine and CFOL shall cause to be performed and hereby guarantee the performance of any and all actions of each of the members of the Lone Pine Group which such actions are necessary or appropriate to effectuate the provisions of this Agreement.

 

D.            Indemnification.  Any claim for indemnification under this Agreement shall be governed by, and be subject to, the provisions of Article III of the Separation and Distribution Agreement.

 

11

 

E.             Dispute Resolution.  Any controversy, dispute or claim arising out of, in connection with, or in relation to the interpretation, performance, nonperformance, validity, termination or breach of this Agreement or otherwise arising out of, or in any way related to this Agreement or the transactions contemplated hereby, including, without limitation, any claim based on contract, tort, statute or otherwise, shall be governed by, and be subject to, the provisions of Article VI of the Separation and Distribution Agreement.

 

F.             Governing Law.  To the extent not preempted by applicable federal or foreign law, including, without limitation, ERISA, the Code and applicable securities laws, this Agreement shall be governed by, construed and interpreted in accordance with the laws of the State of New York, irrespective of the choice of law principles of the State of New York, as to all matters, including matters of validity, construction, effect, performance and remedies.

 

G.            Assignment.  This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective legal representatives and successors, and nothing in this Agreement, express or implied, is intended to confer upon any other Person any rights or remedies of any nature whatsoever under or by reason of this Agreement. No party may assign this Agreement or any rights or obligations hereunder, without the prior written consent of the other parties, and any such assignment shall be void; provided, however, that any party may assign this Agreement to a successor entity in conjunction with such party’s reincorporation. Notwithstanding the foregoing, each party (or its successive assignees or transferees hereunder) may, without such consent, assign or transfer this Agreement to a Person that succeeds to all or substantially all of its business or assets of such party as long as such Person agrees to accept all of the terms set forth herein.

 

H.            Severability.  If any term or other provision of this Agreement is determined to be 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 manner materially adverse to any party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible and in an acceptable manner to the end that transactions contemplated hereby are fulfilled to the fullest possible extent.

 

I.              Interpretation.  The headings contained in this Agreement and in the table of contents to this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement.  When a reference is made in this Agreement to an Article or Section, such reference shall be to an Article or Section of this Agreement unless otherwise indicated.

 

J.             Amendment.  This Agreement may only be amended by a written agreement executed by all parties.

 

K.            Termination.  This Agreement may be terminated at any time prior to the Separation Date (as such term is defined in the Separation and Distribution Agreement) by and in the sole discretion of Forest without the approval of Lone Pine or CFOL. This Agreement may

 

12

 

be terminated at any time after the IPO Closing Date and prior to the Spin-Off Date by Forest if the Forest board of directors determines that the Spin-Off is not in the best interest of Forest or its shareholders. If termination of this Agreement occurs after the IPO Closing Date, only provisions of this Agreement relating to the Spin-Off will terminate.

 

L.             Conflict.  In the event of any conflict between the provisions of this Agreement and the Separation and Distribution Agreement, the provisions of the Separation and Distribution Agreement shall control.  In the event of any conflict between the provisions of this Agreement and any Plan, the provisions of this Agreement shall control.

 

M.           Counterparts.  This Agreement may be executed in separate counterparts, each of which shall be deemed an original and all of which, when taken together, shall constitute one and the same agreement.

 

[Remainder of Page Intentionally Left Blank]

 

13

 

IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf by its officers thereunto duly authorized on the day and year first above written.

 

	
 
    	
FOREST   OIL CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CANADIAN   FOREST OIL LTD.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
LONE   PINE RESOURCES INC.
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

14QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

  Exhibit 10.5    
    

 
 

  FORM OF    
    
    REGISTRATION RIGHTS AGREEMENT    
    
    BETWEEN    
    
    FOREST OIL CORPORATION    
    
    AND    
    
    LONE PINE RESOURCES INC.    
    

Dated                        , 2011    

 

 
 

  TABLE OF CONTENTS    
    

 

 

									
	 ARTICLE I
	 	 DEFINITIONS
	 	 	1	 
	 ARTICLE II
	 	 REGISTRATION RIGHTS
	 	 	

4	 
	 	 	 2.1
	 	 Mandatory Registration Rights
	 	 	

4	 
	 	 	 2.2
	 	 Piggyback Registration Rights. 
	 	 	6	 
	 	 	 2.3
	 	 Expenses
	 	 	8	 
	 	 	 2.4
	 	 No Additional Demand Registration Rights
	 	 	8	 
	 	 	 2.5
	 	 MJDS
	 	 	8	 
	 ARTICLE III
	 	 REGISTRATION PROCEDURES
	 	 	

8	 
	 	 	 3.1
	 	 Registration and Qualification in the United States
	 	 	

8	 
	 	 	 3.2
	 	 Qualification in Canada
	 	 	12	 
	 	 	 3.3
	 	 Selling Stockholder Information
	 	 	14	 
	 	 	 3.4
	 	 Discontinuation of Disposition of Registrable Shares
	 	 	14	 
	 	 	 3.5
	 	 Free Writing Prospectus
	 	 	15	 
	 ARTICLE IV
	 	 SUSPENSION PERIOD
	 	 	

15	 
	 	 	 4.1
	 	 Suspension
	 	 	

15	 
	 	 	 4.2
	 	 Notices Relating to Suspension
	 	 	16	 
	 	 	 4.3
	 	 Effectiveness of Registration Statement
	 	 	16	 
	 ARTICLE V
	 	 INDEMNIFICATION AND CONTRIBUTION
	 	 	

17	 
	 	 	 5.1
	 	 Indemnification by Lone Pine
	 	 	

17	 
	 	 	 5.2
	 	 Indemnification by Forest
	 	 	17	 
	 	 	 5.3
	 	 Indemnification Procedures
	 	 	18	 
	 	 	 5.4
	 	 Contribution
	 	 	18	 
	 	 	 5.5
	 	 Contribution Procedures
	 	 	19	 
	 	 	 5.6
	 	 Additional Liability
	 	 	19	 
	 ARTICLE VI
	 	 TERMINATION OF LONE PINE'S OBLIGATIONS
	 	 	

19	 
	 ARTICLE VII
	 	 MISCELLANEOUS
	 	 	

20	 
	 	 	 7.1
	 	 Construction
	 	 	20	 
	 	 	 7.2
	 	 Entire Agreement
	 	 	20	 
	 	 	 7.3
	 	 Notices
	 	 	20	 
	 	 	 7.4
	 	 Governing Law
	 	 	21	 
	 	 	 7.5
	 	 Severability
	 	 	21	 
	 	 	 7.6
	 	 Amendment
	 	 	21	 
	 	 	 7.7
	 	 Counterparts
	 	 	21	 
	 	 	 7.8
	 	 Authority
	 	 	21	 
	 	 	 7.9
	 	 Binding Effect and Assignment
	 	 	21	 
	 	 	 7.10
	 	 Waiver
	 	 	22	 
	 	 	 7.11
	 	 Arbitration
	 	 	22	 
	 	 	 7.12
	 	 Adjustment for Stock Splits, etc
	 	 	22	 

 

 i

 

 

 
 

  REGISTRATION RIGHTS AGREEMENT    
    

        THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is made and entered into as of
                    , 2011, by and between Lone Pine Resources Inc., a Delaware corporation ("Lone
Pine"), and Forest Oil Corporation, a New York
corporation ("Forest"). 

 
 

  RECITALS    
    

        WHEREAS, Lone Pine is a wholly-owned subsidiary of Forest; 

        WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties are entering into a Separation and Distribution
Agreement (the "Separation and Distribution Agreement") and the other Separation Agreements (as defined in the Separation and Distribution Agreement); 

        WHEREAS, promptly after the execution and delivery of this Agreement, Lone Pine will consummate an initial public offering (the
"IPO") of its common stock, $0.01 per share, including the associated preferred share purchase rights (the "Common
Stock"), in the United States pursuant to a registration statement on Form S-1 (Registration No. 333-171123) under the Securities Act of
1933, as amended, and in certain jurisdictions of Canada pursuant to a prospectus filed under Canadian Securities Laws (as defined below); 

        WHEREAS, immediately following the consummation of the IPO, Forest will own at least 80.1% of the Common Stock; and 

        WHEREAS, the parties desire to make certain arrangements to provide Forest with registration rights with respect to the Common Stock it
holds. 

 
 

  AGREEMENT    
    

        NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and
agreements set forth below, and other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereby agree as follows: 

 
 

  ARTICLE I
  DEFINITIONS    
    

        The following terms used in this Agreement are defined as set forth below or in the sections indicated, as applicable. Capitalized
terms used herein and not otherwise defined shall have the respective meanings assigned to them in Article I of the Separation and Distribution Agreement. 

        "Agreement" has the meaning given such term in the Preamble. 

        "Canadian Prospectus" means a prospectus of Lone Pine filed in one or more Eligible Jurisdictions pursuant to applicable Canadian
Securities Laws qualifying Registrable Shares for public distribution in such Eligible Jurisdictions, including the preliminary prospectus, all amendments and supplements to the prospectus, and all
material incorporated by reference or deemed to be incorporated by reference, if any, in the prospectus. 

        "Canadian Regulator" means, with respect to each Eligible Jurisdiction, the securities regulatory authority or securities regulator, as
applicable, under the applicable Canadian Securities Laws of such Eligible Jurisdiction. 

        "Canadian Review System" means the system and procedures for multi-jurisdictional prospectus reviews established under National
Policy 11-102—Process for Prospectus Review in Multiple Jurisdictions and, as applicable, Multilateral
Instrument 11-102—Passport System, of the Canadian Securities Administrators. 

1

 

        "Canadian Securities Laws" means, with respect to any Canadian Prospectus filed in a Eligible Jurisdiction, as applicable, the securities
legislation of such Eligible Jurisdiction, together with applicable published policy statements and blanket rulings and orders issued by the relevant Canadian Regulator, all as amended and in effect
from time to time. 

        "Common Stock" has the meaning given such term in the Recitals. 

        "Controlling Person" is defined in Section 5.1. 

        "Commission" means the United States Securities and Exchange Commission. 

        "Demand Date" is the date that Forest demands mandatory registration rights pursuant to  Section 2.1. 

        "Eligible Jurisdiction" means each Canadian jurisdiction (other than Quebec) in which Lone Pine is, at the relevant time, a "reporting
issuer" under the applicable Canadian Securities Laws of that jurisdiction. 

        "End of Suspension Notice" is defined in Section 4.2. 

        "Exchange Act" means the United States Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated by the
Commission thereunder. 

        "FINRA" means the Financial Industry Regulatory Authority. 

        "Free Writing Prospectus" means a free writing prospectus, as defined in Rule 405 under the Securities Act. 

        "Forest" has the meaning given such term in the Preamble, and includes any successor thereto. 

        "Indemnified Party" is defined in Section 5.3. 

        "Indemnifying Party" is defined in Section 5.3. 

        "IPO" has the meaning given such term in the Recitals. 

        "Issuer Free Writing Prospectus" means an issuer free writing prospectus, as defined in Rule 433 under the Securities Act. 

        "Liabilities" is defined in Section 5.1. 

        "Lock-up Expiration Date" is defined in Section 2.1. 

        "Lone Pine" has the meaning given such term in the Preamble, and includes any successor thereto. 

        "Mandatory Canadian Shelf Prospectus" is defined in Section 2.1. 

        "Mandatory Registration Statement" is defined in Section 2.1. 

        "MJDS" means the Canadian multijurisdictional disclosure system established by National
Instrument 71-101—The Multijurisdictional Disclosure System, of the Canadian Securities Administrators. 

        "NI 44-102" means National Instrument 44-102—Shelf
Distributions, of the Canadian Securities Administrators. 

        "No Objections Letter" is defined in Section 3.1(t). 

        "Permitted Free Writing Prospectus" is defined in Section 3.5. 

        "Piggyback Canadian Prospectus" is defined in Section 2.2. 

        "Piggyback Registration Statement" is defined in Section 2.2. 

2

 

        "Principal Canadian Regulator" means (a) if a Canadian Prospectus is to be filed in more than one Eligible Jurisdiction, the
Canadian Regulator that is the "principal regulator" with respect to such Canadian Prospectus pursuant to the Canadian Review System, and (b) if a Canadian Prospectus is to be filed in only one
Eligible Jurisdiction, the Canadian Regulator for that Eligible Jurisdiction. 

        "Prospectus" means the prospectus included in any Registration Statement, including any preliminary prospectus, and all other amendments
and supplements to any such prospectus, including post-effective amendments, and all material incorporated by reference or deemed to be incorporated by reference, if any, in such
prospectus. 

        "Purchaser Indemnitee" is defined in Section 5.1. 

        "Registrable Shares" means the shares of Common Stock held by Forest immediately following consummation of the IPO, and any shares or
other securities issued in respect of such Registrable Shares because of or in connection with any stock dividend, stock distribution, stock split, purchase in any rights offering or in connection
with any exchange for or replacement of such Registrable Shares, or any combination of shares, recapitalization, merger, or consolidation, or any other equity securities
issued pursuant to any other pro rata distribution with respect to the Common Stock, until, with respect to a Registrable Share, the earliest to occur of: 

        (a)   the
date on which it is sold pursuant to a Registration Statement or a Canadian Prospectus or is otherwise sold by Forest to a person that is not an Affiliate of Forest,
or becomes eligible for sale pursuant to Rule 144 without restriction pursuant to such rule on the volume of securities that may be sold in any single transaction; or 

        (b)   the
date on which it is sold to Lone Pine or its subsidiaries. 

        "Registration Expenses" means any and all expenses incident to the performance of or compliance with this Agreement, including:
(a) all Commission, Canadian Regulator, securities exchange or marketplace, FINRA registration, listing, inclusion, and filing fees, (b) all fees and expenses incurred in connection with
compliance with international, federal or state securities, or blue sky laws (including any registration, listing and filing fees, and reasonable fees and disbursements of counsel in connection with
blue sky qualification of any of the Registrable Shares, and the preparation of a blue sky memorandum and compliance with the rules of FINRA), (c) all expenses of any Persons in preparing or
assisting in preparing, word processing, duplicating, printing, delivering, and distributing any Registration Statement, any Prospectus, any Canadian Prospectus, any amendments or supplements thereto,
any underwriting agreements, securities sales agreements, certificates, and any other documents relating to the performance under and compliance with this Agreement, (d) all fees and expenses
incurred in connection with the listing or inclusion of any of the Registrable Shares on the New York Stock Exchange and the Toronto Stock Exchange pursuant to  Section 3.1(m), (e) the fees and
disbursements of counsel for Lone Pine and of the independent public accountants of Lone Pine (including
the expenses of any special audit and "cold comfort" letters required by or incident to such performance), and (f) any fees and disbursements customarily paid in issues and sales of securities
(including the fees and expenses of any experts retained by Lone Pine in connection with any Registration Statement or Canadian Prospectus); provided,  however, that Registration Expenses shall exclude brokers' or underwriters' discounts and commissions and transfer taxes, if any, relating to the sale
or disposition of Registrable Shares by Forest and the fees, costs, and disbursements of any counsel to Forest. 

        "Registration Statement" means any Mandatory Registration Statement or Piggyback Registration Statement. 

        "Rule 144," "Rule 158,"
"Rule 415," or "Rule 424," respectively, means such specified rule promulgated by the
Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission as a replacement thereto having
substantially the same effect as such rule. 

3

 

        "Securities Act" means the United States Securities Act of 1933, as amended, and the rules and regulations promulgated by the Commission
thereunder. 

        "Separation and Distribution Agreement" has the meaning given such term in the Recitals. 

        "Suspension Event" is defined in Section 4.2. 

        "Suspension Notice" is defined in Section 4.2. 

        "Underwriting Agreement" is defined in Section 2.1. 

        "Underwritten Offering" means a sale of securities of Lone Pine to an underwriter or underwriters for reoffering to the public. 

 
 

  ARTICLE II
  REGISTRATION RIGHTS    
    

        2.1    Mandatory Registration Rights.    At any time after the expiration of the restrictions set forth in
Section 3 of the Underwriting Agreement (the "Underwriting Agreement"),
dated                    , 2011, by and among Lone Pine and the Underwriters
party thereto (the "Lock-up Expiration Date"), Forest may demand that Lone Pine (a) file with the Commission one or more shelf or
other registration statements on Form S-1 or such other form under the Securities Act then available to Lone Pine providing for the resale by Forest of all or a portion of the
Registrable Shares in one or more separate public offerings or from time to time pursuant to Rule 415 of the Securities Act (including the Prospectus, any amendments and supplements to such
registration statement or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be
incorporated by reference, if any, in any such registration
statement, the "Mandatory Registration Statement"); and/or (b) file in one or more Eligible Jurisdictions one or more base shelf prospectuses
under NI 44-102 (including, as applicable, such other documents comprising the Canadian Prospectus of which the base shelf prospectus is a part, a "Mandatory
Canadian Shelf Prospectus") qualifying the Registrable Shares for public distribution in each such Eligible Jurisdiction. If Lone Pine has an effective Mandatory Registration
Statement on Form S-1 under the Securities Act and becomes eligible to use Form S-3 or such other short-form registration statement form under the
Securities Act, Lone Pine shall promptly give notice of such eligibility to Forest and may, in its sole discretion, convert such Mandatory Registration Statement on Form S-1 to a
registration statement on Form S-3 or such other short-form registration statement by means of a post-effective amendment or otherwise, unless Forest
notifies Lone Pine within 10 Business Days of receipt of the Lone Pine notice that such conversion would interfere with its distribution of Registrable Shares already in progress and provides a
reasonable explanation therefor, in which case Lone Pine will delay the conversion of the Mandatory Registration Statement for a reasonable time after receipt of the first such notice, not to exceed
30 days in the aggregate. 

        (a)   Effectiveness and Scope.    Lone Pine shall use its reasonable best efforts to cause the Mandatory Registration
Statement to be declared effective by the Commission and/or a final receipt to be issued for the Mandatory Canadian Shelf Prospectus by the Principal Canadian Regulator within 120 days
following the Demand Date, and to remain effective until, in the case of a Mandatory Registration Statement, the date on which all Shares in respect thereof cease to be Registrable Shares and, in the
case of a Mandatory Canadian Shelf Prospectus, the earlier of the date on which Forest no longer holds any Registrable Shares and 25 months from the date on which the receipt is issued. The
Mandatory Registration Statement and/or the Mandatory Canadian Shelf Prospectus shall provide for the resale from time to time, and pursuant to any method or combination of methods legally available
(including an Underwritten Offering, a direct sale to purchasers, a sale through brokers or agents, or a sale over the internet), by Forest, as agreed to by Forest and its counsel. 

4

 

        (b)   Underwriting.    If Forest proposes to conduct an Underwritten Offering under the Mandatory Registration
Statement or the Mandatory Canadian Shelf Prospectus, Forest shall advise Lone Pine of the managing underwriters for such proposed Underwritten Offering. In such event, Lone Pine shall enter into an
underwriting agreement in customary form with the managing underwriters, which shall include, among other provisions, indemnities to the effect and to the extent provided in  Article V and shall
take all such other reasonable actions as are requested by the managing underwriter in order to expedite or facilitate the
registration and/or qualification and the disposition of the Registrable Shares included in such Underwritten Offering; provided,  however, that Lone Pine
shall be required to cause appropriate officers of Lone Pine or its Affiliates to participate in a "road show" or similar
marketing effort being conducted by such underwriter with respect to such Underwritten Offering only if Forest and any other Persons, if any, who are participating in the Underwritten Offering
reasonably anticipate gross proceeds from such Underwritten Offering of at least $20 million; provided,  further, that Lone Pine shall not be required
to cause such officers of Lone Pine or its Affiliates to participate in a "road show" or similar marketing
effort being conducted by such underwriter with respect to such Underwritten Offering more than twice in a 365 day period. If Forest proposes to distribute its Registrable Shares through such
Underwritten Offering, it shall enter into an underwriting agreement in customary form with the managing underwriters selected for such Underwritten Offering and complete and execute any
questionnaires, personal information forms, powers of attorney, submissions to jurisdiction, certificates, undertakings, declarations, notices, indemnities, securities escrow agreements, and other
documents reasonably required under the terms of such underwriting (including, without limitation, any documents required under the Securities Act or applicable Canadian Securities Laws), and furnish
to Lone Pine such information in writing as Lone Pine may reasonably request for inclusion in the Mandatory Registration Statement and/or Mandatory Canadian Shelf Prospectus;  provided, however, that Forest shall not be required to make any representations or warranties to or
agreements with Lone Pine or the underwriters other than representations, warranties, or agreements as are customary and reasonably requested by the underwriters. Notwithstanding any other provision
of this Agreement, with respect to an Underwritten Offering pursuant to a Mandatory Registration Statement or a Mandatory Canadian Shelf Prospectus, if the managing underwriters determine in good
faith that marketing factors require a limitation on the number of shares to be included in such Underwritten Offering, then the managing underwriters may exclude shares (including Registrable Shares)
from the Underwritten Offering, and any shares included in the Underwritten Offering shall be allocated to Forest to the extent of its requested amount of Registrable Shares to be included in the
Underwritten Offering. 

5

 

 

        2.2    Piggyback Registration Rights.    

        (a)   Piggyback Registration.    If, after the date hereof, Lone Pine proposes (i) to file a
registration statement under the Securities Act providing for a public offering of Lone Pine's equity securities, other than a registration statement on Form S-8 or
Form S-4 or any similar form hereafter adopted by the Commission as a replacement therefor (including the Prospectus, any amendments and supplements to such registration statement
or Prospectus, including pre- and post-effective amendments, all exhibits thereto, and all material incorporated by reference or deemed to be incorporated by reference, if any,
in such registration statement, the "Piggyback Registration Statement"); and/or (ii) to file a Canadian Prospectus providing for a public
offering of Lone Pine's equity securities in one or more Eligible Jurisdiction (a "Piggyback Canadian Prospectus"), or (iii) conduct an
Underwritten Offering pursuant to a Piggyback Registration Statement or a Piggyback Canadian Prospectus, Lone Pine will notify Forest of the proposed filing and Forest shall be given an opportunity to
include in the public offering provided for under such Piggyback Registration Statement or Piggyback Canadian Prospectus or in the Underwritten Offering, as applicable, all or any part of the
Registrable Shares; provided, however, that, except as set forth below, Forest shall not be given an
opportunity to include Registrable Shares in any Underwritten Offering to the extent that Lone Pine has been advised by the managing underwriter of such Underwritten Offering that the inclusion of any
Registrable Shares for sale for the benefit of Forest will have a materially adverse effect on the price, timing, marketing, or distribution of the Common Stock;  provided, further that notwithstanding any provision to the contrary in this  Section 2.2, Forest shall have the right to include Registrable Shares in any Underwritten
Offering subject to this  Section 2.2 in a number up to the greater of (i) 20% of the number of shares of Common Stock to be sold in such Underwritten Offering or
(ii) the number Registrable Shares that Forest could include in such Underwritten Offering without regard to this provision. If Forest has an Affiliate who is an officer or director of Lone
Pine, within 10 Business Days after delivery of the above-described notice by Lone Pine, Forest has the right to notify Lone Pine in writing of its intention to include Registrable Shares in the
public offering provided for under such Piggyback Registration Statement or Piggyback Canadian Prospectus or in the Underwritten Offering, as applicable, and, in such notice, shall inform Lone Pine of
the number of Registrable Shares that Forest wishes to so include, as applicable, and provide, as a condition to such inclusion, such information regarding itself and its Registrable Shares as is
required pursuant to Regulation S-K promulgated under the Securities Act and/or applicable Canadian Securities Laws to effect the registration and/or qualification of the
Registrable Shares; provided, however, that if Forest does not have an Affiliate who is an officer or
director of Lone Pine, Forest
shall provide such notice within three Business Days (or one Business Day in the case of an "overnight" offering or "bought deal") after delivery of the above-described notice by Lone Pine. If such
written notification of Forest's intent to include Registrable Shares in the public offering provided for under such Piggyback Registration Statement or Piggyback Canadian Prospectus or in the
Underwritten Offering, as applicable, is not received by Lone Pine within the time-frame specified in the immediately preceding sentence, Forest shall have no right to so include any
Registrable Shares. Inclusion of any Registrable Shares in such Piggyback Registration Statement will not affect the inclusion of such Registrable Shares in the Mandatory Registration Statement until
such Registrable Shares have been sold under the Piggyback Registration Statement, at which time Lone Pine may remove from the Mandatory Registration Statement such Registrable Shares. 

        (b)   Right to Terminate Piggyback Registration.    At any time, Lone Pine may terminate or withdraw any Piggyback
Registration Statement or Piggyback Canadian Prospectus referred to in this Section 2.2, and without any obligation to Forest whether or not
Forest has elected to include Registrable Shares in such registration or qualification, as applicable. Lone Pine may suspend the effectiveness and use of any Piggyback Registration Statement or
Piggyback Canadian Prospectus 

6

 

at
any time for an unlimited amount of time whether or not Forest has elected to include Registrable Shares in such registration or qualification, as applicable. 

        (c)   Underwriting.    Any notice provided to Forest by Lone Pine pursuant to  Section 2.2(a) in connection with an Underwritten Offering shall advise
Forest of the managing underwriters for any Underwritten Offering
proposed under the Piggyback Registration Statement or Piggyback Canadian Prospectus. Forest's right to include Registrable Shares in any Piggyback Registration Statement or Piggyback Canadian
Prospectus pursuant to this Section 2.2 shall be conditioned upon participation in such Underwritten Offering and the inclusion of Registrable
Shares in the Underwritten Offering to the extent provided herein. Forest, if distributing Registrable Shares through such Underwritten Offering, shall enter into an underwriting agreement in
customary form with the managing underwriters selected for such Underwritten Offering and complete and execute any questionnaires, personal information forms, powers of attorney, submissions to
jurisdiction, certificates, undertakings, declarations, notices, indemnities, securities escrow agreements, and other documents reasonably required under the terms of such underwriting (including,
without limitation, any documents required under the Securities Act or applicable Canadian Securities Laws), and furnish to Lone Pine such information in writing as Lone Pine may reasonably request
for inclusion in the Registration Statement or Canadian Prospectus; provided, however, that Forest shall
not be required to make any representations or warranties to or agreements with Lone Pine or the underwriters other than representations, warranties, or agreements as are customary and reasonably
requested by the underwriters. Notwithstanding any other provision of this Agreement, with respect to an Underwritten Offering pursuant to a Piggyback Registration Statement or a Piggyback Canadian
Prospectus, if the managing underwriters determine in good faith that marketing factors require a limitation on the number of shares to be included in such Underwritten Offering, then the managing
underwriters may exclude shares (including Registrable Shares) from the Underwritten Offering, and any shares included in the Underwritten Offering shall be allocated  first, to Lone Pine, and
second, to Forest, and third,
to any other Person included in such Underwritten Offering. If Forest disapproves of the terms of any Underwritten Offering pursuant to a Piggyback Registration Statement or a Piggyback Canadian
Prospectus, Forest may elect to withdraw therefrom by written notice to Lone Pine and the underwriter, delivered at least 10 Business Days
before the effective date of the Piggyback Registration Statement or at any time prior to execution of a definitive underwriting agreement relating to a distribution pursuant to a Piggyback Canadian
Prospectus or any Underwritten Offering. Any Registrable Shares excluded or withdrawn from any Underwritten Offering pursuant to a Piggyback Registration Statement may be excluded and withdrawn from
such Piggyback Registration Statement. 

        (d)   Hold-Back Agreement.    By electing to include Registrable Shares in an Underwritten Offering
pursuant to a Piggyback Registration Statement or a Piggyback Canadian Prospectus, Forest shall be deemed to have agreed not to effect any sale or distribution of securities of Lone Pine of the same
or similar class or classes of the securities included in the Registration Statement or Canadian Prospectus or any securities convertible into or exchangeable or exercisable for such securities,
including a sale pursuant to Rule 144 under the Securities Act, during such periods as reasonably requested (but in no event longer than 30 days' before or 60 days' following the
pricing of such Underwritten Offering, provided, that each of the executive officers and directors of Lone Pine who holds shares of Common Stock or
securities convertible into or exchangeable or exercisable for shares of Common Stock is subject to the same restriction for the entire time period required of Forest hereunder) by the representatives
of the underwriters. 

        (e)   Termination of Piggyback Registration Rights.    The Piggyback Registration rights granted pursuant to this  Section 2.2 shall terminate on the
fifth anniversary of the Lock-up Expiration Date. 

7

 

        (f)    Mandatory Registration not Impacted by Piggyback Registration Statement.    Lone Pine's obligation to file any
Mandatory Registration Statement or Mandatory Canadian Shelf Prospectus shall not be affected by the filing or effectiveness of the Piggyback Registration Statement or Piggyback Canadian Prospectus,
as applicable. 

        2.3    Expenses.    Lone Pine shall pay all Registration Expenses in connection with the registration of the
Registrable Shares pursuant to this Agreement. Forest, if participating in a registration or qualification pursuant to this Section 2.3, shall
bear all discounts and commissions payable to underwriters or brokers and all transfer taxes, if any, in connection with a registration of Registrable Shares pursuant to this Agreement and any other
expense of Forest not specifically allocated to Lone Pine pursuant to this Agreement relating to the sale or disposition of Registrable Shares pursuant to any Registration Statement or Canadian
Prospectus. Nothing herein shall require Lone Pine to pay any fees, costs, or disbursements of or relating to counsel for Forest unless required pursuant to Section 5.3. 

        2.4    No Additional Demand Registration Rights.    Unless otherwise consented to by Forest, which consent may be
unreasonably withheld, Lone Pine shall not grant to any other Person a demand registration
right to register Common Stock for sale to the public in an Underwritten Offering or in a continuous offering under Rule 415 of the Securities Act or under NI 44-102. 

        2.5    MJDS.    Notwithstanding anything contained in this Article II  or in
Section 3.2, in the event that Lone Pine is required hereunder to qualify any Registrable Shares for public
distribution in any Eligible Jurisdiction and Lone Pine is then eligible to qualify securities for distribution in Canada pursuant to the MJDS Rule, Lone Pine may, at its option, elect to qualify
Registrable Shares for public distribution in such Eligible Jurisdiction pursuant to the applicable requirements and procedures set forth in the MJDS Rule, and the terms and conditions hereof shall
apply, mutatis mutandis. 

 
 

  ARTICLE III
  REGISTRATION PROCEDURES    
    

        3.1    Registration and Qualification in the United States.    In connection with the obligations of Lone Pine with
respect to any registration of Registrable Shares in the United States pursuant to this Agreement, Lone Pine shall: 

        (a)   prepare
and file with the Commission, as specified in this Agreement, each Registration Statement, which Registration Statement shall comply as to form in all material
respects with the requirements of the applicable form and include all financial statements required by the Commission to be filed therewith, and use its reasonable best efforts to cause such
Registration Statement to become effective as soon as practicable after filing and to remain effective as appropriate; 

        (b)   subject
to Section 3.1(i), (i) prepare and file with the Commission such amendments and
post-effective amendments to each such Registration Statement as may be necessary to keep such Registration Statement effective and accurate as appropriate, (ii) cause each
Prospectus contained therein to be supplemented by any required Prospectus supplement, and as so supplemented to be filed pursuant to Rule 424 or any similar rule that may be adopted under the
Securities Act, (iii) promptly amend or supplement each such Registration Statement to include Lone Pine's quarterly and annual financial information and other material developments (until Lone
Pine is eligible to incorporate such information by reference into the Registration Statement), during which time sales of the Registrable Shares under the Registration Statement will be suspended
until such amendment or supplement is filed and effective, and (iv) comply in all material respects with the provisions of the Securities Act with respect to the disposition of all securities
covered by each Registration Statement during the applicable period in accordance with the intended method or methods of distribution by Forest; 

8

 

        (c)   furnish
to Forest, without charge, as many copies of each Prospectus, including each preliminary Prospectus, any Permitted Issuer Free Writing Prospectus, and any
amendment or supplement thereto and such other relevant documents as Forest may reasonably request; Lone Pine hereby consents to the use of such Prospectus, including each preliminary Prospectus, any
Permitted Issuer Free Writing Prospectus, and any amendment or supplement thereto, by Forest in connection with the offering and sale of the Registrable Shares covered by any such Prospectus; 

        (d)   use
its reasonable best efforts to register or qualify, or obtain exemption from registration or qualification for, all Registrable Shares by the time the applicable
Registration Statement is declared effective by the Commission under all applicable state securities or "blue sky" laws of such domestic jurisdictions as Forest shall reasonably request in writing,
keep each such registration or qualification or exemption effective during the period such Registration Statement is required to be kept effective pursuant to this Agreement, and do any and all other
acts and things that may be reasonably necessary or advisable to enable Forest to consummate the disposition of Registrable Shares in each such jurisdiction;  provided, however, that Lone Pine shall not be required to (i) qualify generally to do business
in any jurisdiction or to register as a broker or dealer in such jurisdiction where it would not otherwise be required to qualify but for this  Section 3.1(d), (ii) subject itself to taxation
in any such jurisdiction, or (iii) submit to the general service of process in any
such jurisdiction; 

        (e)   use
its reasonable best efforts to cause all Registrable Shares covered by such Registration Statement to be registered and approved by such other domestic governmental
agencies or authorities, if any, as may be necessary to enable Forest to consummate the disposition of such Registrable Shares; 

        (f)    notify
Forest promptly (i) when such Registration Statement has become effective and when any post-effective amendments and supplements thereto become
effective, (ii) of any issuance by the Commission or any state securities authority of any stop order suspending the effectiveness of such Registration Statement or the initiation of any
proceedings for that purpose, (iii) of any request by the Commission or any other federal or state governmental authority for amendments or supplements to such Registration Statement or related
Prospectus or any Issuer Free Writing Prospectus or for additional information, and (iv) of the happening of any event during the period such Registration Statement is effective as a result of
which such Registration Statement or the related Prospectus or any Permitted Issuer Free Writing Prospectus or any document incorporated by reference therein contains any untrue statement of a
material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading (which information shall be accompanied by an instruction to
suspend the use of the Registration Statement and the Prospectus and such Permitted Issuer Free Writing Prospectus until the requisite changes have been made); 

        (g)   use
its reasonable best efforts to avoid the issuance of, or if issued, to obtain the withdrawal of, any order enjoining or suspending the use or effectiveness of a
Registration Statement or suspending the qualification (or exemption from qualification) of any of the Registrable Shares for sale in any jurisdiction, as promptly as practicable; 

        (h)   upon
written request, furnish to Forest, without charge, at least one conformed copy of such Registration Statement and any post-effective amendment or
supplement thereto (without documents incorporated therein by reference or exhibits thereto, unless requested); 

        (i)    except
as provided in Article IV, upon the occurrence of any event contemplated by  Section 3.1(f)(iv), use its reasonable best efforts to promptly
prepare a supplement or post-effective amendment to a Registration
Statement or the related Prospectus or any Permitted Issuer Free Writing Prospectus or any document incorporated therein by reference or file any other required document so that, as thereafter
delivered to the purchasers of the Registrable Shares, such 

9

 

Prospectus
or Permitted Issuer Free Writing Prospectus will not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading, and, upon request, promptly furnish to Forest a reasonable number of copies of each such supplement or
post-effective amendment; 

        (j)    if
requested by Forest or the representative of the underwriters, if any, (i) promptly incorporate in a Prospectus supplement or post-effective
amendment such material information as Forest or the representative of the underwriters, if any, indicate relates to them or otherwise reasonably request be included therein and (ii) make all
required filings of such Prospectus supplement or such post-effective amendment as soon as practicable after Lone Pine has received notification of the matters to be incorporated in such
Prospectus supplement or post-effective amendment; 

        (k)   in
the case of an Underwritten Offering, use its reasonable best efforts to furnish or caused to be furnished to Forest and the underwriters a signed counterpart,
addressed to Forest and the underwriters, of: (i) an opinion of counsel for Lone Pine, dated the date of each closing under the underwriting agreement, reasonably satisfactory to the
underwriters; (ii) a "comfort" letter, dated the date of the underwriting agreement and the date of each closing thereunder, signed by the independent public accountants who have certified Lone
Pine's financial statements included in such Registration Statement, covering substantially the same matters with respect to such Registration Statement (and the Prospectus included therein) and with
respect to events subsequent to the date of such financial statements, as are customarily covered in accountants' letters delivered to underwriters in underwritten public offerings of securities, and
such other financial matters as the underwriters may reasonably request and are customarily obtained by underwriters in underwritten offerings;  provided, that to be an addressee of the comfort letter,
Forest may be required to confirm that it is in the category of persons to whom a comfort
letter may be delivered in accordance with applicable accounting literature; and
(iii) a "comfort" letter, dated the date of the underwriting agreement and the date of each closing thereunder, signed by the independent petroleum engineering consultants who have evaluated or
audited Lone Pine's oil and gas reserves included in such Registration Statement, covering substantially the same matters with respect to such Registration Statement (and the Prospectus included
therein) and with respect to events subsequent to the date of its evaluation or audit of such oil and gas reserves, as are customarily covered in engineers' letters delivered to underwriters in
underwritten public offerings of securities, and such other reserves-related matters as the underwriters may reasonably request and are customarily obtained by underwriters in underwritten offerings; 

        (l)    enter
into customary agreements (including in the case of an Underwritten Offering, an underwriting agreement) and take all other action in connection therewith to
expedite or facilitate the distribution of the Registrable Shares included in such Registration Statement, and in the case of an Underwritten Offering make representations and warranties to the
underwriters in such form and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same, to the extent customary, if and when requested; 

10

 

 

        (m)  in
the case of an Underwritten Offering, use its reasonable best efforts to make available for inspection by the underwriters participating in any disposition pursuant
to a Registration Statement and their representatives (including counsel or other professional advisors), all financial and other records, pertinent corporate documents, and properties of Lone Pine,
and cause the officers and employees of Lone Pine to supply all information reasonably requested; provided,  however, that such records, documents or
information that Lone Pine determines, in good faith, to be confidential and notifies the underwriters
accordingly shall not be disclosed unless (i) disclosure is necessary to avoid or correct a misrepresentation in a Registration Statement or Prospectus, (ii) the release of such records,
documents, or information is required by law or ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or (iii) such records, documents, or information have been
generally made available to the public; provided, further, that to the extent practicable, the foregoing
inspection and information gathering shall be coordinated on behalf of Forest and the other parties entitled thereto by one counsel designated by and on behalf of Forest and the other parties, which
counsel Lone Pine determines in good faith is reasonably acceptable; 

        (n)   use
its reasonable best efforts (including seeking to cure in Lone Pine's listing application any deficiencies cited by the exchanges) to cause all Registrable Shares to
be listed on the New York Stock Exchange and the Toronto Stock Exchange and thereafter maintain the listing on such exchanges when such Registrable Shares are included in a Registration Statement; 

        (o)   use
its reasonable best efforts to prepare and file in a timely manner all documents and reports required by the Exchange Act and, to the extent Lone Pine's obligation
to file such reports pursuant to Section 15(d) of the Exchange Act expires before the expiration of the effectiveness period of the Registration Statement as required by  Section 2.1(a), Lone
Pine shall register the Registrable Shares under the Exchange Act and shall maintain such registration through the
effectiveness period required by Section 2.1(a); 

        (p)   provide
a CUSIP number for all Registrable Shares; 

        (q)   (i)
otherwise use its commercially reasonable efforts to comply in all material respects with all applicable rules and regulations of the Commission, (ii) make
generally available to its stockholders, as soon as reasonably practicable, earnings statements covering at least 12 months that satisfy the provisions of Section 11(a) of the Securities
Act and Rule 158 thereunder, and (iii) delay filing any Registration Statement or Prospectus or amendment or supplement to such Registration Statement or Prospectus to which Forest shall
have reasonably objected on the grounds that such Registration Statement or Prospectus or amendment or supplement does not comply in all material respects with the requirements of the Securities Act,
Forest having been furnished with a copy thereof at least three Business Days before the filing thereof; provided, that Lone Pine may file such
Registration Statement or Prospectus or amendment or supplement after Lone Pine shall have made a good faith effort to resolve any such issue with Forest and shall have advised Forest in writing of
its reasonable belief that such filing complies in all material respects with the requirements of the Securities Act; 

        (r)   cause
to be maintained a registrar and transfer agent for all Registrable Shares; 

        (s)   in
connection with any disposition of Registrable Shares (whether or not pursuant to a Registration Statement) that will result in the securities being delivered no
longer constituting Registrable Shares, cooperate with Forest and the representative of the underwriters, if any, to facilitate the timely preparation and delivery of certificates representing the
Registrable Shares to be sold, which certificates shall not bear any transfer restrictive legends (other than as required by Lone Pine's charter), and to enable such Registrable Shares to be in such
denominations and registered in such names as Forest or the representative of the underwriters, if any, may request at least three Business Days before any sale of Registrable Shares; 

11

 

        (t)    if
required under the rules of FINRA, in connection with the initial filing of a Shelf Registration Statement and each amendment thereto with the Commission pursuant to  Section 2.1, cooperate with the
underwriter's or other FINRA member's counsel as reasonably necessary to prepare and, within one Business Day of
such filing with the Commission, to file with FINRA all forms and information required or requested by FINRA in order to obtain written confirmation from FINRA that FINRA does not object to the
fairness and reasonableness of the underwriting terms and arrangements (or any deemed underwriting terms and arrangements) (each such written confirmation, a "No Objections
Letter") relating to the resale of Registrable Shares pursuant to the Shelf Registration Statement, including, without limitation, information provided to FINRA through its
COBRADesk system, and shall pay all costs, fees, and expenses incident to FINRA's review of the Shelf Registration Statement and the related underwriting terms and arrangements, including, without
limitation, all filing fees associated with any filings or submissions to FINRA and the legal expenses, filing fees, and other disbursements of any other FINRA member that is the holder of, or is
affiliated or associated with an owner of, Registrable Shares included in the Shelf Registration Statement (including in connection with any initial or subsequent member filing); and 

        (u)   upon
effectiveness of the first Registration Statement filed under this Agreement, if necessary, Lone Pine will take such actions and make such filings as are necessary
to effect the registration of the Common Stock under the Exchange Act simultaneously with or immediately following the effectiveness of the Registration Statement. 

        3.2    Qualification in Canada.    In connection with the obligations of Lone Pine with respect to any qualification
of Registrable Shares for public distribution in an Eligible Jurisdiction pursuant to this Agreement, Lone Pine shall: 

        (a)   prepare
and file, in each Eligible Jurisdiction in which the distribution is to be effected, as specified in this Agreement, a preliminary and final prospectus, which
shall comply as to form in all material respects with the requirements of applicable Canadian Securities Laws, together with any required amendments or supplements thereto as may be required to comply
with applicable Canadian Securities Laws and all material incorporated by reference or deemed to be incorporated by reference therein (as applicable), and use its reasonable best efforts to obtain
receipts for the preliminary and final prospectus from the Canadian Regulator; 

        (b)   furnish
to Forest, without charge, as many copies of the Canadian Prospectus and such other relevant documents as Forest may reasonably request; and Lone Pine hereby
consents to the use of the Canadian Prospectus by Forest in connection with the offering and sale of the Registrable Shares covered by such Canadian Prospectus; 

        (c)   in
the case of an Underwritten Offering, use its reasonable best efforts to furnish or cause to be furnished to Forest and the underwriters a signed counterpart,
addressed to Forest and the underwriters, of: (i) an opinion of counsel for Lone Pine, dated the date of each closing under the underwriting agreement, reasonably satisfactory to the
underwriters; (ii) a "comfort" letter, dated the date of the underwriting agreement and the date of each closing thereunder, signed by the independent public accountants who have certified Lone
Pine's financial statements included in the Canadian Prospectus, covering substantially the same matters with respect to the Canadian Prospectus and with respect to events subsequent to the date of
such financial statements, as are customarily covered in accountants' letters delivered to underwriters in underwritten public offerings of securities, and such other financial matters as the
underwriters may reasonably request and are customarily obtained by underwriters in underwritten offerings; provided, that to be an addressee of the
comfort letter, Forest may be required to confirm that it is in the category of persons to whom a comfort letter may be delivered in accordance with applicable accounting literature; and
(iii) a "comfort" letter, dated the date of the underwriting agreement and the date 

12

 

of
each closing thereunder, signed by the independent petroleum engineering consultants who have evaluated or audited Lone Pine's oil and gas reserves included in the Canadian Prospectus, covering
substantially the same matters with respect to the Canadian Prospectus and with respect to events subsequent to the date of its evaluation or audit of such oil and gas reserves, as are customarily
covered in engineers' letters delivered to underwriters in underwritten public offerings of securities, and such other reserves-related matters as the underwriters may reasonably request and are
customarily obtained by underwriters in underwritten offerings; 

        (d)   enter
into customary agreements (including in the case of an Underwritten Offering, an underwriting agreement) and take all other action in connection therewith to
expedite or facilitate the distribution of the Registrable Shares covered by the Canadian Prospectus, and in the case of an Underwritten Offering make representations and warranties to the
underwriters in such form and scope as are customarily made by issuers to underwriters in underwritten offerings and confirm the same, to the extent customary, if and when requested; 

        (e)   in
the case of an Underwritten Offering, use its reasonable best efforts to make available for inspection by the underwriters participating in any distribution pursuant
to the Canadian Prospectus and their representatives (including counsel or other professional advisors), all financial and other records, pertinent corporate documents, and properties of Lone Pine,
and cause the officers and employees of Lone Pine to supply all information reasonably requested; provided,  however, that any records, documents, or
information that Lone Pine determines, in good faith, to be confidential and notifies the underwriters
accordingly shall not be disclosed unless (i) disclosure is necessary to avoid or correct a misrepresentation in the Canadian Prospectus, (ii) the release of such records, documents, or
information is required by law or ordered pursuant to a subpoena or other order from a court of competent jurisdiction, or (iii) such records, documents, or information have been generally made
available to the public; provided, further, that to the extent practicable, the foregoing inspection and
information gathering shall be coordinated on behalf of Forest and the other parties entitled thereto by one counsel designated by and on behalf of Forest and the other parties, which counsel Lone
Pine determines in good faith is reasonably acceptable; 

        (f)    (i)
notify Forest promptly of the happening of any event as a result of which the Canadian Prospectus as then in effect and pursuant to which Registrable Shares are
qualified for public distribution in an Eligible Jurisdiction would include an untrue statement of material fact or would omit to state a material fact that is required to be stated or that is
necessary to make any statement therein not misleading in light of the circumstances in which it was made (which notice shall be accompanied by an instruction to suspend the use of the Canadian
Prospectus until the required updates have been completed); (ii) except as provided in Article IV use its reasonable best efforts to
promptly amend or supplement the Canadian Prospectus so that the Canadian Prospectus, as amended or supplemented, will not include an untrue statement of material fact or omit to state a material fact
that is required to be stated or that is necessary to make any statement therein not misleading in light of the circumstances in which it was made; and (iii) promptly furnish to Forest a
reasonable number of copies of any such amendment or supplement; 

        (g)   notify
Forest promptly of the issuance by a Canadian Regulator, or by any court or other governmental or regulatory authority, of any order or ruling suspending the
effectiveness of the receipt for a Canadian Prospectus, ceasing any trading in Registrable Shares or the Common Stock generally, or suspending or preventing the use of a Canadian Prospectus or the
qualification of any securities thereunder for distribution in any jurisdiction; and use its reasonable best efforts to have any such order or ruling cancelled or withdrawn pending which Forest shall
cease any distribution of Common Stock and acts in furtherance thereof and shall not deliver a Canadian Prospectus to any person; 

13

 

        (h)   notify
Forest promptly of the initiation of any proceedings for an order or ruling described in Section 3.2(g)
above or any request by a Canadian Regulator, or by any court or other governmental or regulatory authority, for amendments or supplements to a Canadian Prospectus or for additional information; 

        (i)    in
connection with any disposition of Registrable Shares (whether or not pursuant to a Canadian Prospectus) that will result in the securities being delivered no longer
constituting Registrable Shares, cooperate with Forest and the representative of the underwriters, if any, to facilitate the timely preparation and delivery of certificates representing the
Registrable Shares to be sold, which certificates shall not bear any transfer restrictive legends (other than as required by Lone Pine's charter), and to enable such Registrable Shares to be in such
denominations and registered in such names as Forest or the representative of the underwriters, if any, may request at least three Business Days before any sale of Registrable Shares; 

        (j)    use
its reasonable best efforts to cause all Registrable Shares to be listed on the New York Stock Exchange and the Toronto Stock Exchange; 

        (k)   provide
a CUSIP number for all Registrable Shares; 

        (l)    (i)
otherwise use its commercially reasonable efforts to comply in all material respects with all applicable Canadian Securities Laws, and (ii) delay filing any
document comprising a part of the Canadian Prospectus to which Forest shall have reasonably objected on the grounds that such document does not comply in all material respects with the requirements of
applicable Canadian Securities Laws, Forest having been furnished with a copy thereof at least three Business Days before the filing thereof; provided,
that Lone Pine may file such document after Lone Pine shall have made a good faith effort to resolve any such issue with Forest and shall have advised Forest in writing of its reasonable belief that
such filing complies in all material respects with the requirements of applicable Canadian Securities Laws; 

        (m)  cause
to be maintained a registrar and transfer agent for all Registrable Shares; and 

        (n)   use
its reasonable best efforts to otherwise take all such other actions as may be necessary in order to facilitate the distribution of Registrable Shares in an Eligible
Jurisdiction in accordance with
applicable Canadian Securities Laws, through registrants who comply with the relevant provisions of such laws. 

        3.3    Selling Stockholder Information.    Forest shall furnish to Lone Pine such information regarding the proposed
distribution of Common Stock by Forest as Lone Pine may from time to time reasonably request in writing or as shall be required to effect the registration or qualification of the Registrable Shares,
and Forest shall not be entitled to be named as a selling stockholder in any Registration Statement or Canadian Prospectus (and Forest shall not be entitled to use the Prospectus forming a part of the
Registration Statement) if Forest does not provide such information to Lone Pine. Forest further agrees to furnish promptly to Lone Pine in writing all information required from time to time to make
the information previously furnished by Forest not misleading. 

        3.4    Discontinuation of Disposition of Registrable Shares.    Forest agrees that, upon receipt of any notice from
Lone Pine of the happening of any event of the kind described in Section 3.1(f)(ii), 3.1(f)(iii),  3.1(f)(iv), 3.2(f)(i), 3.2(g), or
3.2(h), Forest will immediately discontinue disposition of Registrable Shares pursuant to a Registration Statement or a Canadian Prospectus until
(a) any such order or ruling is vacated or (b) if an event described in Section 3.1(f)(iii),  3.1(f)(iv), or 3.2(f)(i)
 occurs, Forest's receipt of the copies of the supplemented or amended
Prospectus or Canadian Prospectus, as applicable. If so directed by Lone Pine, Forest will deliver to Lone Pine (at the reasonable expense of Lone Pine) all copies in its possession, other than
permanent file copies, of the Prospectus or Canadian Prospectus covering such Registrable Shares as at the time of receipt of such direction. 

14

 

        3.5    Free Writing Prospectus.    Forest represents that it has not prepared or had prepared on its behalf or used or
referred to, and agrees that it will not prepare or have prepared on its behalf or use or refer to, any Free Writing Prospectus, and has not distributed and will not distribute any written materials
in connection with the offer or sale of the Registrable Shares without the prior express written consent of Lone Pine and, in connection with any Underwritten Offering, the underwriters;  provided,
however, that no Free Writing Prospectus or other written materials will be used, referred to
or distributed in any jurisdiction in which such use, reference or distribution is unlawful. Any such Free Writing Prospectus consented to by Lone Pine and the underwriters, as the case may be, to the
extent that such Free Writing Prospectus is lawfully used, referred to or distributed, is hereinafter referred to as a "Permitted Free Writing
Prospectus." Lone Pine represents and agrees that it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing
Prospectus, including in respect of timely filing with the Commission, legending, and record keeping. 

 ARTICLE IV

SUSPENSION PERIOD  

        4.1    Suspension.    Subject to the provisions of this  Article IV, following the effectiveness of a Registration Statement
and/or the issuance of a final receipt for a Canadian Prospectus (and the
filings with any international, federal, or state securities commissions), Lone Pine may direct Forest, in accordance with Section 4.2, to
suspend sales of the Registrable Shares pursuant to a Registration Statement and/or a Canadian Prospectus for such times as Lone Pine reasonably may determine is necessary and advisable (but in no
event, (a) in the case of clause (i) below, for more than 45 consecutive days and (b) in the case of  clauses (i), (ii) and (iii) below, for more than
an aggregate of 90 days in any consecutive 12-month period commencing on the Closing Time or more than 60 days in any consecutive 90-day period, except (in the
case of clause (b)) as a result of a review of any post-effective amendment by the Commission before declaring any
post-effective amendment to the Registration Statement effective; provided, that Lone Pine has used its reasonable best efforts to cause
such post-effective amendment to be declared effective), if any of the following events shall occur: (i) the representative of the underwriters of an Underwritten Offering of
primary shares by Lone Pine has advised Lone Pine that the sale of Registrable Shares pursuant to the Registration Statement and/or a Canadian Prospectus would have a material adverse effect on the
price, timing, marketing, or distribution of such Underwritten Offering; (ii) the majority of the members of the board of directors of Lone Pine shall have determined in good faith that
(A) the offer or sale of any Registrable Shares would materially impede, delay, or interfere with any proposed financing, offer, or sale of securities, acquisition, merger, tender offer,
business combination, corporate reorganization, consolidation, or other significant transaction involving Lone Pine, (B) upon the advice of counsel, the sale of Registrable Shares pursuant to
the Registration Statement and/or the Canadian Prospectus would require disclosure of non-public material information not otherwise required to be disclosed under applicable law, and
(C) either (x) Lone Pine has a bona fide business purpose for preserving the confidentiality of such transaction, (y) disclosure would or would reasonably be expected to have a
material adverse effect on Lone Pine or Lone Pine's ability to consummate such transaction, or (z) the proposed transaction renders Lone Pine unable to comply with Commission requirements or
applicable Canadian Securities Laws, in each case under circumstances that would make it impractical or inadvisable to cause the Registration Statement (or such filings) to become effective or to
promptly amend or supplement the Registration Statement on a post-effective basis or to promptly amend or supplement the Canadian Prospectus, as applicable; or (iii) the majority of
the members of the board of directors of Lone Pine shall have determined in good faith, upon the advice of counsel, that it is required by law to amend or supplement the Registration Statement or the
Canadian Prospectus or file a post-effective amendment to the Registration Statement in order to incorporate information into the Registration Statement for the purpose of
(A) including in the Registration Statement any prospectus required under Section 10(a)(3) of the Securities Act; (B) reflecting in the Prospectus 

15

 

included
in the Registration Statement or the Canadian Prospectus any facts or events arising after the effective date of the Registration Statement (or of the most-recent
post-effective amendment) or the Canadian Prospectus that, individually or in the
aggregate, represents a fundamental change in the information set forth therein; or (C) including in the Prospectus included in the Registration Statement or the Canadian Prospectus any
material information with respect to the plan of distribution not disclosed in the Registration Statement or the Canadian Prospectus or any material change to such information. Upon the occurrence of
any such suspension, Lone Pine shall use its reasonable best efforts to cause the Registration Statement to become effective or to promptly amend or supplement the Registration Statement on a
post-effective basis or to promptly amend or supplement the Canadian Prospectus or to take such action as is necessary to make resumed use of the Registration Statement or the Canadian
Prospectus compatible with Lone Pine's best interests, as applicable, so as to permit Forest to resume sales of the Registrable Shares as soon as possible. 

        4.2    Notices Relating to Suspension.    In the case of an event that causes Lone Pine to suspend the use of a
Registration Statement and/or a Canadian Prospectus (a "Suspension Event"), Lone Pine shall give written notice (a "Suspension
Notice") to Forest to suspend sales of the Registrable Shares and such notice shall state generally the basis for the notice and that such suspension shall continue only for so
long as the Suspension Event or its effect is continuing. Lone Pine shall use its reasonable best efforts and take all reasonable steps to terminate suspension of the use of the Registration Statement
and/or the Canadian Prospectus as promptly as possible. Forest shall not effect any sales of Registrable Shares pursuant to such Registration Statement (or such filings) or the Canadian Prospectus at
any time after it has received a Suspension Notice from Lone Pine and before receipt of an End of Suspension Notice (as defined below). If so directed by Lone Pine, Forest will deliver to Lone Pine
(at the expense of Lone Pine) all copies other than permanent file copies then in Forest's possession of the Prospectus and any Issuer Free Writing Prospectus and the Canadian Prospectus covering the
Registrable Shares at the time of receipt of the Suspension Notice. Forest may recommence effecting sales of Registrable Shares pursuant to the Registration Statement (or such filings) and/or the
Canadian Prospectus following further notice to such effect (an "End of Suspension Notice") from Lone Pine, which End of Suspension Notice shall be
given by Lone Pine to Forest in the manner described above promptly following the conclusion of any Suspension Event and its effect. 

        4.3    Effectiveness of Registration Statement.    Notwithstanding any provision herein to the contrary, subject to
applicable law, any Suspension Events or as contemplated by Section 3.1(f)(iv) or 3.2(f)(i) each
Registration Statement and/or Canadian Prospectus shall be maintained effective pursuant to this Agreement until the Registrable Shares are not Registrable Shares. 

16

 

  ARTICLE V

INDEMNIFICATION AND CONTRIBUTION  

        5.1    Indemnification by Lone Pine.    Lone Pine agrees to indemnify and hold harmless (a) Forest and any
underwriter (as determined in the Securities Act) for Forest, (b) each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the
Exchange Act) any of the foregoing (a "Controlling Person"), and (c) the respective officers, directors, partners, members, employees,
representatives, and agents of any such Person or any Controlling Person (any Person referred to in clause (a),  (b), or (c)
 may hereinafter be referred to as a "Purchaser
Indemnitee") from and against any and all losses, claims, damages, judgments, actions, reasonable out-of-pocket expenses, and other liabilities,
including, as incurred, reimbursement of all reasonable costs of investigating, preparing, pursuing, or defending any claim or action, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, including the reasonable fees and expenses of outside counsel to any Purchaser Indemnitee, joint or several (the
"Liabilities"), directly or indirectly related to, based upon, arising out of, or in connection with any untrue statement or alleged untrue statement of
a material fact contained in any Registration Statement, Prospectus (preliminary, amended, supplemented, or final), Issuer Free Writing Prospectus (as amended or supplemented), Canadian Prospectus
(preliminary, amended, supplemented or final) or any other document prepared by Lone Pine used to sell the Registrable Shares, or any omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein (in the case of a Prospectus or a Canadian Prospectus, in light of the circumstances under which they were made), not
misleading, except insofar as such Liabilities arise out of or are based upon (i) any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in
conformity with information relating to any Purchaser Indemnitee furnished to Lone Pine or any underwriter in writing by such Purchaser Indemnitee expressly for use therein, (ii) any untrue
statement or omission contained in a preliminary Prospectus if such untrue statement is cured by delivery to Forest of an amended preliminary Prospectus or a Free Writing Prospectus prior to pricing
of the sale of securities, if an Underwritten Offering, or the effectiveness of the Mandatory Registration Statement to which the preliminary Prospectus relates, (iii) any untrue statement or
omission contained in a preliminary Canadian Prospectus if such untrue statement is
cured by delivery to Forest of an amended preliminary Canadian Prospectus, or (iv) any sales by Forest after the delivery by Lone Pine to Forest of a Suspension Notice and before the delivery
by Lone Pine of an End of Suspension Notice. Lone Pine shall notify Forest promptly of the institution, threat, or assertion of any claim, proceeding (including any governmental investigation), or
litigation which it shall have become aware in connection with the matters addressed by this Agreement which involves Lone Pine or a Purchaser Indemnitee. The indemnity provided for herein shall
remain in full force and effect regardless of any investigation made by or on behalf of any Purchaser Indemnitee. 

        5.2    Indemnification by Forest.    In connection with any Registration Statement or Canadian Prospectus in which
Forest is participating, Forest agrees to indemnify and hold harmless Lone Pine, each Person who controls Lone Pine within the meaning of Section 15 of the Securities Act or
Section 20(a) of the Exchange Act, and the respective officers, directors, partners, members, representatives, employees, and agents of such Person or Controlling Person to the same extent as
the foregoing indemnity from Lone Pine to each Purchaser Indemnitee, but only with reference to (a) untrue statements or omissions or alleged untrue statements or omissions made in reliance
upon and in strict conformity with information relating to Forest furnished to Lone Pine in writing by Forest expressly for use in any Registration Statement, Prospectus or Canadian Prospectus, any
amendment or supplement thereto, or any preliminary Prospectus or preliminary Canadian Prospectus and (b) any sales by Forest after the delivery by Lone Pine to Forest of a Suspension Notice
and before the delivery by Lone Pine of an End of Suspension Notice. The liability of Forest pursuant to clause (a) of the immediately preceding
sentence shall in no event exceed the net proceeds received by Forest from sales of Registrable Shares giving rise to such obligations. If Forest elects to include Registrable Shares in an 

17

 

Underwritten
Offering, Forest shall be required to agree to such customary indemnification provisions as may reasonably be required by the underwriter in connection with such Underwritten Offering. 

        5.3    Indemnification Procedures.    If any suit, action, proceeding (including any governmental or regulatory
investigation), claim, or demand shall be brought or asserted against any Person in respect of which indemnity may be sought pursuant to  Section 5.1 or 5.2, such Person (the "Indemnified
Party"), shall promptly notify the Person against whom such indemnity may be sought (the "Indemnifying Party"), in writing (to
the extent legally advisable) of the commencement thereof (but the failure to so notify an Indemnifying Party shall not relieve it from any Liability which it may have under this  Article V, except
to the extent the Indemnifying Party is materially prejudiced by the failure to give notice), and the Indemnifying Party, upon
request of the Indemnified Party, shall retain counsel reasonably satisfactory to the Indemnified Party to represent the Indemnified Party and any others the Indemnifying Party may reasonably
designate in such proceeding and shall assume the defense of such proceeding and pay the fees and expenses actually incurred by such counsel related to such proceeding. Notwithstanding the foregoing,
in any such proceeding, any Indemnified Party may retain its own counsel, but the fees and expenses of such counsel shall be at the expense of such Indemnified Party, unless (a) the
Indemnifying Party and the Indemnified Party shall have mutually agreed in writing to the contrary, (b) the Indemnifying Party failed within a reasonable time after notice of commencement of
the action to assume the defense and employ counsel reasonably satisfactory to the Indemnified Party, (c) the Indemnifying Party and its counsel do not pursue in a reasonable manner the defense
of such action, or (d) the named parties to any such action (including any impleaded parties) include both such Indemnified Party and the Indemnifying Party, or any Affiliate of the
Indemnifying Party, and such Indemnified Party shall have been reasonably advised by counsel that, either (x) there may be one or
more legal defenses available to it which are different from or additional to those available to the Indemnifying Party or such Affiliate of the Indemnifying Party or (y) a conflict may exist
between such Indemnified Party and the Indemnifying Party or such Affiliate of the Indemnifying Party, in which event the Indemnifying Party may not assume or direct the defense of such action on
behalf of such Indemnified Party, it being understood, however, that the Indemnifying Party shall not, in connection with any one such action or separate but substantially similar or related actions
arising out of the same general allegations or circumstances, be liable for the fees and expenses of more than one separate firm of attorneys (in addition to any local counsel) for all such
Indemnified Parties, which firm shall be designated in writing by those Indemnified Parties who sold a majority of the Registrable Shares sold by all such Indemnified Parties under the particular
Registration Statement and any such separate firm for Lone Pine, the directors, the officers and such control Persons of Lone Pine as shall be designated in writing by Lone Pine. The Indemnifying
Party shall not be liable for any settlement of any proceeding effected without its written consent, which consent shall not be unreasonably withheld or delayed, but if settled with such consent or if
there be a final judgment for the plaintiff, the Indemnifying Party agrees to indemnify any Indemnified Party from and against any Liability by reason of such settlement or judgment to the extent
provided in this Article V without reference to this sentence. No Indemnifying Party shall, without the prior written consent of the Indemnified
Party, effect any settlement of any pending or threatened proceeding in respect of which any Indemnified Party is or could have been a party and indemnity could have been sought hereunder by such
Indemnified Party, unless such settlement includes an unconditional release of such Indemnified Party from all Liability on claims that are the subject matter of such proceeding. 

        5.4    Contribution.    If the indemnification provided for in  Section 5.1 or 5.2 is for any reason held to be unavailable to an Indemnified Party in respect of
any Liabilities referred to therein (other than by reason of the exceptions provided therein) or is insufficient to hold harmless a party indemnified thereunder, then each Indemnifying Party under
such sections, in lieu of indemnifying such Indemnified Party thereunder, shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liabilities (a) in such
proportion as is appropriate to reflect the relative benefits of the Indemnified Party on the one hand and the Indemnifying Parties on the other in connection with the 

18

 

statements
or omissions that resulted in such Liabilities, or (b) if the allocation provided by clause (a) above is not permitted by
applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in clause (a) above but also the
relative fault of the Indemnifying Parties and the Indemnified Party, as well as any other relevant equitable considerations. The relative fault of Lone Pine, on the one hand, and any Purchaser
Indemnitees, on the other, shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a
material fact relates to information supplied by Lone Pine or by such Purchaser Indemnitees and the parties' relative intent, knowledge, access to information and opportunity to correct or prevent
such statement or omission. 

        5.5    Contribution Procedures.    The parties agree that it would not be just and equitable if contribution pursuant
to this Article V were determined by pro rata allocation (even if such Indemnified Parties were treated as one entity for such purpose), or by
any other method of allocation that does not take account of the equitable considerations referred to in Section 5.4. The amount paid or payable
by an Indemnified Party as a result of any Liabilities referred to in Section 5.4 shall be deemed to include,
subject to the limitations set forth above, any reasonable legal or other expenses actually incurred by such Indemnified Party in connection with investigating or defending any such action or claim.
Notwithstanding the provisions of this Article V, in no event shall a Purchaser Indemnitee be required to contribute any amount in excess of the
amount by which proceeds received by such Purchaser Indemnitee from sales of Registrable Shares exceeds the amount of any damages that such Purchaser Indemnitee has otherwise been required to pay by
reason of such untrue or alleged untrue statement or omission or alleged omission. For purposes of this Article V, each Person, if any, who
controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) Forest shall have the same rights to contribution as Forest, as the case may be,
and each Person, if any, who controls (within the meaning of Section 15 of the Securities Act or Section 20(a) of the Exchange Act) Lone Pine, and each officer, director, partner,
member, employee, representative, agent, or manager of Lone Pine shall have the same rights to contribution as Lone Pine. Any party entitled to contribution will, promptly after receipt of notice of
commencement of any action, suit, or proceeding against such party in respect of which a claim for contribution may be made against another party or parties, notify each party or parties from whom
contribution may be sought, but the omission to so notify such party or parties shall not relieve the party or parties from whom contribution may be sought from any obligation it or they may have
under this Article V or otherwise, except to the extent that any party is materially prejudiced by the failure to give notice. No Person guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act), shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation. 

        5.6    Additional Liability.    The indemnity and contribution agreements contained in this  Article V will be in addition to
any Liability which any Indemnifying Party may otherwise have to any Indemnified Party referred to above. Each
Purchaser Indemnitee's obligations to contribute pursuant to this Article V are not joint but are several in the proportion that the number of
Shares sold by such Purchaser Indemnitee bears to the number of Shares sold by all Purchaser Indemnities. 

 ARTICLE VI

TERMINATION OF LONE PINE'S OBLIGATIONS  

        Lone Pine shall have no further obligations pursuant to this Agreement upon the earlier of such time as (a) Forest completes the
Spin-off and (b) no Registrable Shares are outstanding after their original issuance; provided,  however, that Lone Pine's obligations under
Articles V and  VII (and any related definitions) shall remain in full force and effect following such time.
 

19

 
 ARTICLE VII

MISCELLANEOUS  

        7.1    Construction.    The parties have participated jointly in the negotiation and drafting of this Agreement. If an
ambiguity or question of intent or interpretation arises, this Agreement will be construed as if drafted jointly by the parties and no presumption or burden of proof will arise favoring or disfavoring
any party because of the authorship of any provision of this Agreement. Any reference to any federal, state, provincial, local, or foreign law will be deemed also to refer to such law as amended and
all rules and regulations promulgated thereunder, unless the context requires otherwise. Any reference to any contract or agreement (including schedules, exhibits, and other attachments thereto),
including this Agreement, will be deemed also to refer to such agreement as amended, restated, or otherwise modified, unless the context requires otherwise. The words "include," "includes," and
"including" will be deemed to be followed by "without limitation." Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form
will be construed to include the plural and vice versa, unless the context requires otherwise. The words "this Agreement," "herein," "hereof," "hereby," "hereunder," and words of similar import refer
to this Agreement as a whole and not to any particular subdivision unless expressly so limited. Where this Agreement states that a party "will" or "shall" perform in some manner or otherwise act or
omit to act, it means that such party is legally obligated to do so in accordance with this Agreement. The captions, titles, and headings included in this Agreement are for convenience only and do not
affect this Agreement's construction or interpretation. Any reference to an Article, Section or Schedule in this Agreement shall refer to an Article or Section of, or Schedule to, this Agreement,
unless the context otherwise requires. Other than with respect to Article V, this Agreement is for the sole benefit of the parties and does not,
and is not intended to, confer any rights or remedies in favor of any Person (including any employee or shareholder of Forest or Lone Pine) other than the parties. 

        7.2    Entire Agreement.    This Agreement constitutes the entire agreement between the parties with respect to the
subject matter hereof and thereof and supersedes (a) all prior oral or written proposals or agreements, (b) all contemporaneous oral proposals or agreements, and (c) all previous
negotiations and all other communications or understandings between the parties, in each case with respect to the subject matter hereof and thereof. 

        7.3    Notices.    Any notice, instruction, direction, or demand under the terms of this Agreement required to be in
writing shall be duly given upon delivery, if delivered by hand, facsimile or other generally accepted means of electronic transmission, or mail (with postage prepaid), to the following addresses: 

        (a)   If
to Lone Pine, to: 

Lone
Pine Resources Inc.

c/o David M. Anderson

Suite 2500, 645-7 Avenue SW

Calgary, Alberta,

Canada, T2P 4G8

Fax: (403) 663-2447 

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

Bennett
Jones LLP

c/o Colin Perry

4500 Bankers Hall East

Calgary, Alberta

Canada T2P 4K7

Fax: (403) 265-7219 

20

 

        (b)   If
to Forest, to: 

Forest
Oil Corporation

c/o Cyrus D. Marter IV

707 17th Street, Suite 3600

Denver, Colorado 80202

Fax: (303) 812-1510 

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

Vinson &
Elkins L.L.P.

c/o Shelley A. Barber

666 Fifth Avenue, 26th Floor

New York, New York 10103

Fax: (917) 849-5353 

or
to such other addresses or telecopy numbers as may be specified by like notice to the other party. 

        7.4    Governing Law.    This Agreement shall be construed in accordance with and governed by the substantive internal
laws of the State of New York, excluding its conflict of laws rules. 

        7.5    Severability.    If any term or other provision of this Agreement shall be determined by a court,
administrative agency, or arbitrator to be invalid, illegal, or unenforceable, such invalidity, illegality, or unenforceability shall not render the entire Agreement invalid. Rather, this Agreement
shall be construed as if not containing the particular invalid, illegal, or unenforceable provision, and all other 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 manner materially adverse to either party. Upon such determination that any term or other
provision is invalid, illegal, or unenforceable, 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 fullest extent permitted under applicable Law. 

        7.6    Amendment.    This Agreement may only be amended by a written agreement executed by both parties. 

        7.7    Counterparts.    This Agreement may be executed in separate counterparts, each of which shall be deemed an
original and all of which, when taken together, shall constitute one and the same agreement. 

        7.8    Authority.    Each party represents to the other party that (a) it has the corporate power and authority
to execute, deliver, and perform this Agreement, (b) the execution, delivery, and performance of this Agreement by it have been duly authorized by all necessary corporate or other actions,
(c) it has duly and validly executed and delivered this Agreement, and (d) this Agreement is its legal, valid, and binding obligation, enforceable against it in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium, or other similar laws affecting creditors' rights generally and general equity principles. 

        7.9    Binding Effect and Assignment.    This Agreement binds and benefits the parties and their respective successors
and permitted assigns and shall inure to the benefit of Forest. The registration rights granted by this Agreement may not be transferred or assigned by operation of law or in connection with any
transfer or assignment of Registrable Shares to a transferee unless, immediately following such transfer or assignment, such transferee will hold an amount of Registrable Shares greater than 10% of
the Common Stock outstanding on the date of such transfer or assignment, and then only upon notification to Lone Pine in writing and agreement by such transferee to the rights and obligations of this
Agreement; provided, however, that if the Spin-Off occurs, no Person receiving Common Stock in the Spin-Off shall be a
transferee or assignee permitted by this Section 7.9. 

21

 

References
to Forest in this Agreement shall be deemed to include any such transferee or assignee permitted by this Section 7.9. 

        7.10    Waiver.    A provision of this Agreement may be waived only by a writing signed by the party intended to be
bound by the waiver. A party is not prevented from enforcing any right, remedy, or condition in the party's favor because of any failure or delay in exercising any right or remedy or in requiring
satisfaction of any condition, except to the extent that the party specifically waives the same in writing. A written waiver given for one matter or occasion is effective only in that instance and
only for the purpose stated. A waiver once given is not to be construed as a waiver for any other matter or occasion. Any enumeration of a party's rights and remedies in this Agreement is not intended
to be exclusive, and a party's rights and remedies are intended to be cumulative to the extent permitted by Law and include any rights and remedies authorized in Law or in equity. 

        7.11    Arbitration.    All disputes and controversies which may arise out of or in connection with this Agreement and
are not resolved through good faith negotiation shall be settled by binding arbitration in accordance with the provisions of Article VI of the Separation and Distribution Agreement. 

        7.12    Adjustment for Stock Splits, etc.    Wherever in this Agreement there is a reference to a specific number of
shares with respect to any securities, then upon the occurrence of any subdivision, combination, or stock dividend of such shares, the specific number of shares with respect to any securities so
referenced in this Agreement shall automatically be proportionally adjusted to reflect the effect on the outstanding shares of such class or series of stock by such subdivision, combination, or stock
dividend. 

[Signature
Page Follows] 

22

  
        IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

 

 

					
	 	 	 LONE PINE RESOURCES INC.
	

 	
 	
By:	
 	
 

 
	 	 	Name:	 	  

 
	 	 	Title:	 	 

 
	

 	
 	
FOREST OIL CORPORATION
	

 	
 	
By:	
 	
  

 
	 	 	Name:	 	 

 
	 	 	Title:	 	  

 

 

 SIGNATURE PAGE TO

REGISTRATION RIGHTS AGREEMENT

QuickLinks

Exhibit 10.5

FORM OF REGISTRATION RIGHTS AGREEMENT BETWEEN FOREST OIL CORPORATION AND LONE PINE RESOURCES INC. Dated , 2011

TABLE OF CONTENTS

REGISTRATION RIGHTS AGREEMENT

RECITALS

AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II REGISTRATION RIGHTS

ARTICLE III REGISTRATION PROCEDURES

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