Document:

exv10w1

Exhibit 10.1

Execution
Version

PURCHASE AND SALE AGREEMENT

between

RANGE TEXAS PRODUCTION, LLC,

ENERGY ASSETS OPERATING COMPANY, LLC

and

RANGE RESOURCES CORPORATION

as Seller

and

LEGEND NATURAL GAS IV, LP

as Buyer

dated

February 28, 2011

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS AND INTERPRETATION	 	 	1	 
	1.1
	 	Defined Terms	 	 	1	 
	1.2
	 	References and Rules of Construction	 	 	19	 
	1.3
	 	Treatment of Retained Assets	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE II PURCHASE AND SALE	 	 	20	 
	2.1
	 	Purchase and Sale	 	 	20	 
	2.2
	 	Excluded Assets	 	 	20	 
	2.3
	 	Revenues and Expenses	 	 	20	 
	 
	 	 	 	 	 	 
	ARTICLE III PURCHASE PRICE	 	 	20	 
	3.1
	 	Purchase Price	 	 	20	 
	3.2
	 	Deposit	 	 	21	 
	3.3
	 	Adjustments to Purchase Price	 	 	21	 
	3.4
	 	Preliminary Settlement Statement	 	 	23	 
	3.5
	 	Final Settlement Statement	 	 	23	 
	3.6
	 	Disputes	 	 	23	 
	3.7
	 	Allocation of Purchase Price / Allocated Values	 	 	24	 
	3.8
	 	Allocation of Consideration for Tax Purposes	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLER	 	 	25	 
	4.1
	 	Organization, Existence and Qualification	 	 	25	 
	4.2
	 	Authority, Approval and Enforceability	 	 	26	 
	4.3
	 	No Conflicts	 	 	27	 
	4.4
	 	Consents	 	 	27	 
	4.5
	 	Bankruptcy	 	 	27	 
	4.6
	 	Foreign Person	 	 	28	 
	4.7
	 	Litigation	 	 	28	 
	4.8
	 	Material Contracts	 	 	28	 
	4.9
	 	No Violation of Laws	 	 	29	 
	4.10
	 	Preferential Rights	 	 	29	 
	4.11
	 	Royalties; Expenses; Etc.	 	 	29	 
	4.12
	 	Imbalances	 	 	29	 
	4.13
	 	Current Commitments	 	 	29	 
	4.14
	 	Environmental	 	 	30	 
	4.15
	 	Property Taxes	 	 	30	 
	4.16
	 	Tax Partnerships	 	 	30	 
	4.17
	 	Brokers’ Fees	 	 	30	 
	4.18
	 	Suspense Funds	 	 	31	 
	4.19
	 	Wells	 	 	29	 
	4.20
	 	No Other Barnett Shale Area Leases	 	 	30	 
	4.21
	 	Applicable Contracts Subject to Confidentiality Restrictions	 	 	30	 
	4.22
	 	Regulatory Matters	 	 	31	 

i

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE V BUYER’S REPRESENTATIONS AND WARRANTIES	 	 	31	 
	5.1
	 	Organization, Existence and Qualification	 	 	31	 
	5.2
	 	Authority, Approval and Enforceability	 	 	32	 
	5.3
	 	No Conflicts	 	 	32	 
	5.4
	 	Consents	 	 	32	 
	5.5
	 	Bankruptcy	 	 	32	 
	5.6
	 	Litigation	 	 	32	 
	5.7
	 	Financing	 	 	32	 
	5.8
	 	Regulatory	 	 	33	 
	5.9
	 	Independent Evaluation	 	 	33	 
	5.10
	 	Brokers’ Fees	 	 	33	 
	5.11
	 	Accredited Investor	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE VI CERTAIN AGREEMENTS	 	 	34	 
	6.1
	 	Conduct of Business	 	 	34	 
	6.2
	 	Successor Operator	 	 	35	 
	6.3
	 	HSR Act	 	 	36	 
	6.4
	 	Governmental Bonds	 	 	36	 
	6.5
	 	Record Retention	 	 	36	 
	6.6
	 	Amendment of Schedules	 	 	36	 
	6.7
	 	Transition Services	 	 	37	 
	6.8
	 	Assumed Hedges and Novation Agreements	 	 	37	 
	6.9
	 	Retained Assets & Retained Asset Call Option	 	 	38	 
	6.10
	 	Permit Issue Properties	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE VII BUYER’S CONDITIONS TO CLOSING	 	 	39	 
	7.1
	 	Representations	 	 	39	 
	7.2
	 	Performance	 	 	40	 
	7.3
	 	No Legal Proceedings	 	 	40	 
	7.4
	 	Title Defects and Environmental Defects	 	 	40	 
	7.5
	 	HSR Act	 	 	40	 
	7.6
	 	Closing Deliverables	 	 	40	 
	 
	 	 	 	 	 	 
	ARTICLE VIII SELLER’S CONDITIONS TO CLOSING	 	 	40	 
	8.1
	 	Representations	 	 	40	 
	8.2
	 	Performance	 	 	40	 
	8.3
	 	No Legal Proceedings	 	 	40	 
	8.4
	 	Title Defects and Environmental Defects	 	 	41	 
	8.5
	 	HSR Act	 	 	41	 
	8.6
	 	Replacement Bonds	 	 	41	 
	8.7
	 	Closing Deliverables	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE IX CLOSING	 	 	41	 
	9.1
	 	Date of Closing	 	 	41	 
	9.2
	 	Place of Closing	 	 	41	 

ii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	9.3
	 	Closing Obligations	 	 	41	 
	9.4
	 	Records	 	 	43	 
	 
	 	 	 	 	 	 
	ARTICLE X ACCESS/DISCLAIMERS	 	 	43	 
	10.1
	 	Access	 	 	43	 
	10.2
	 	Confidentiality	 	 	45	 
	10.3
	 	Disclaimers	 	 	45	 
	 
	 	 	 	 	 	 
	ARTICLE XI TITLE MATTERS; CASUALTY; TRANSFER RESTRICTIONS	 	 	47	 
	11.1
	 	Seller’s Title	 	 	47	 
	11.2
	 	Notice of Title Defects; Defect Adjustments	 	 	48	 
	11.3
	 	Casualty Loss	 	 	52	 
	11.4
	 	Preferential Purchase Rights and Consents to Assign	 	 	52	 
	 
	 	 	 	 	 	 
	ARTICLE XII ENVIRONMENTAL MATTERS	 	 	53	 
	12.1
	 	Notice of Environmental Defects	 	 	53	 
	12.2
	 	NORM, Wastes and Other Substances	 	 	56	 
	 
	 	 	 	 	 	 
	ARTICLE XIII ASSUMPTION; INDEMNIFICATION; SURVIVAL	 	 	57	 
	13.1
	 	Assumption by Buyer	 	 	57	 
	13.2
	 	Indemnities of Seller	 	 	57	 
	13.3
	 	Indemnities of Buyer	 	 	58	 
	13.4
	 	Limitation on Liability	 	 	59	 
	13.5
	 	Express Negligence	 	 	60	 
	13.6
	 	Exclusive Remedy	 	 	60	 
	13.7
	 	Indemnification Procedures	 	 	60	 
	13.8
	 	Survival	 	 	62	 
	13.9
	 	Waiver of Right to Rescission	 	 	63	 
	13.10
	 	Insurance, Taxes	 	 	63	 
	13.11
	 	Non-Compensatory Damages	 	 	63	 
	13.12
	 	Cooperation by Buyer — Retained Litigation	 	 	63	 
	13.13
	 	Investigations and Knowledge	 	 	63	 
	 
	 	 	 	 	 	 
	ARTICLE XIV TERMINATION, DEFAULT AND REMEDIES	 	 	64	 
	14.1
	 	Right of Termination	 	 	64	 
	14.2
	 	Effect of Termination	 	 	64	 
	14.3
	 	Return of Documentation and Confidentiality	 	 	64	 
	 
	 	 	 	 	 	 
	ARTICLE XV MISCELLANEOUS	 	 	65	 
	15.1
	 	Exhibits and Schedules	 	 	65	 
	15.2
	 	Expenses and Taxes	 	 	65	 
	15.3
	 	Assignment	 	 	66	 
	15.4
	 	Preparation of Agreement	 	 	66	 
	15.5
	 	Publicity	 	 	66	 
	15.6
	 	Notices	 	 	66	 

iii

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	15.7
	 	Further Cooperation	 	 	67	 
	15.8
	 	Filings, Notices and Certain Governmental Approvals	 	 	68	 
	15.9
	 	Entire Agreement; Conflicts	 	 	68	 
	15.10
	 	Parties in Interest	 	 	68	 
	15.11
	 	Amendment	 	 	69	 
	15.12
	 	Waiver; Rights Cumulative	 	 	69	 
	15.13
	 	Conflict of Law Jurisdiction, Venue; Jury Waiver	 	 	69	 
	15.14
	 	Severability	 	 	69	 
	15.15
	 	Removal of Name	 	 	70	 
	15.16
	 	Counterparts	 	 	70	 
	15.17
	 	Confidentiality	 	 	70	 
	15.18
	 	Relationship of Range, EAOC and RTC	 	 	70	 

iv

 

LIST OF EXHIBITS AND SCHEDULES

	 	 	 	 	 
	EXHIBITS:	 	 	 	 
	Exhibit A

	 	—
	 	Leases
	Exhibit A-1

	 	—
	 	Wells (WI/NRI) and Allocated Values
	Exhibit A-2

	 	—
	 	Future Wells (WI/NRI) and Allocated Values
	Exhibit A-3

	 	—
	 	Map of Future Locations
	Exhibit A-4

	 	—
	 	EAOC Assets
	Exhibit B-1

	 	—
	 	Excluded Assets
	Exhibit B-2

	 	—
	 	Retained Assets and Allocated Values
	Exhibit C-1

	 	—
	 	Form of RTP Assignment
	Exhibit C-2

	 	—
	 	Form of EAOC Assignment
	Exhibit C-3

	 	—
	 	Form of Special Warranty Deed
	Exhibit D

	 	—
	 	Form of Letter in Lieu
	Exhibit E-1

	 	—
	 	Form of RPC and RTP’s Non-Foreign Affidavit
	Exhibit E-2

	 	—
	 	Form of Range and EAOC’s Non-Foreign Affidavit
	Exhibit F

	 	—
	 	Form of Mitchell Ranch Surface Use Agreement
	Exhibit G

	 	—
	 	Form of Seller’s Certificate
	Exhibit H

	 	—
	 	Form of Buyer’s Certificate
	Exhibit I

	 	—
	 	Form of Title Indemnity Agreement
	Exhibit J

	 	—
	 	Form of Environmental Indemnity Agreement
	Exhibit K

	 	—
	 	Form of Transition Services Agreement

	 	 	 	 	 
	SCHEDULES:	 	 	 	 
	Schedule 1.1

	 	—
	 	Assumed Hedges and Allocated Values
	Schedule 3.3(a)(iii)

	 	—
	 	Pre-Effective Time Capital Expenditures
	Schedule 4.4

	 	—
	 	Consents
	Schedule 4.7

	 	—
	 	Litigation
	Schedule 4.8

	 	—
	 	Material Contracts
	Schedule 4.9

	 	—
	 	Violation of Laws
	Schedule 4.10

	 	—
	 	Preferential Rights
	Schedule 4.11

	 	—
	 	Royalties, Etc.
	Schedule 4.13

	 	—
	 	Current Commitments
	Schedule 4.14

	 	—
	 	Environmental
	Schedule 4.15

	 	—
	 	Property Taxes
	Schedule 4.16

	 	—
	 	Tax Partnership
	Schedule 4.18

	 	—
	 	Suspense Funds
	Schedule 4.19

	 	—
	 	Wells
	Schedule 6.1

	 	—
	 	Conduct of Business
	Schedule 6.4

	 	—
	 	Governmental Bonds
	Schedule 6.10(a)

	 	—
	 	Subject Permit, Permit Issue, Permit Amendment and Permit Property Amount
	Schedule 6.10(b)

	 	—
	 	Permit Issue Properties
	Schedule 6.10(c)

	 	—
	 	Alternative Transportation Agreement Terms
	Schedule 13.1

	 	—
	 	Retained Liabilities
	Schedule 13.4(d)

	 	—
	 	Clawback ORRI
	Schedule 15.9

	 	—
	 	Certain Employees

v 

 

PURCHASE AND SALE AGREEMENT

     This PURCHASE AND SALE AGREEMENT (this “Agreement”) is executed as of February 28, 2011, and
is among RANGE TEXAS PRODUCTION, LLC, a Delaware limited liability company (“RTP”), ENERGY ASSETS
OPERATING COMPANY, LLC, a Delaware limited liability company (“EAOC”), and RANGE RESOURCES
CORPORATION, a Delaware corporation (“Range” and, together with RTP and EAOC, “Seller”), as Seller,
and LEGEND NATURAL GAS IV, LP, a Delaware limited partnership (“Buyer”), as Buyer. RTP, EAOC,
Range and Buyer are each a “Party”, and collectively the “Parties”.

RECITALS

     Seller desires to sell and assign, and Buyer desires to purchase and pay for (a) the RTP
Assets (as hereinafter defined), (b) the EAOC Assets (as hereinafter defined) and (c) the Assumed
Hedges (as hereinafter defined).

     NOW, THEREFORE, for and in consideration of the mutual promises contained herein, the benefits
to be derived by each Party hereunder, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller and Buyer agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

     1.1 Defined Terms. Capitalized terms used herein shall have the meanings set forth in this
Section 1.1, unless the context otherwise requires.

     “Accounting Arbitrator” shall have the meaning set forth in Section 3.6.

     “Adjusted Purchase Price” shall have the meaning set forth in Section 3.3.

     “AFE” shall have the meaning set forth in Section 4.13.

     “Affiliate” shall mean any Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by or is under common control with, another Person. The
term “control” and its derivatives with respect to any Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management and policies of such
Person, whether through the ownership of voting securities, by contract or otherwise.

     “Agreement” shall have the meaning set forth in the introductory paragraph herein.

     “Allocable EAOC Amount” shall have the meaning set forth in Section 3.8(b).

     “Allocable Range Amount” shall have the meaning set forth in Section 3.8(c).

     “Allocable RTP Amount” shall have the meaning set forth in Section 3.8(a).

     “Allocated Value” shall have the meaning set forth in Section 3.7.

1

 

     “Alternative Transportation Agreement” shall have the meaning set forth in Section 6.10(b).

     “Alternative Transportation Date” shall mean December 1, 2011.

     “Applicable Contracts” shall mean all Contracts (a) by which any of the Assets are bound and
that will be binding on Buyer after the Closing and/or (b) that primarily relate to the ownership,
operation or development of the Assets, but exclusive of any master service agreements.

     “Assets” shall mean the RTP Assets and the EAOC Assets.

     “Assignments” shall mean the RTP Assignment, EAOC Assignment and Special Warranty Deed.

     “Assumed Hedges” shall mean the Hedge Contracts described on Schedule 1.1.

     “Assumed Hedge Counterparty” shall mean each Person listed in the “Counterparty” column of
Schedule 1.1 who is a counterparty to Range with respect to an Assumed Hedge.

“Assumed Obligations” shall have the meaning set forth in Section 13.1

     “Barnett Shale Area” shall mean Dallas, Denton, Ellis, Hill, Hood, Johnson, Parker, Tarrant
and Wise Counties, Texas.

     “Barnett Shale Formation” shall mean the shale formation (a) in the Fort Worth basin overlain
by inter-bedded shale and limestone of the lower Marble Falls/Comyn interval and which overlies the
regional unconformity capping the Lower Paleozoic (Ellenburger, Viola/Simpson), which is
distinguished by very high radioactivity and high resistivity log signatures which differentiates
it from the overlying Marble Falls/Comyn and underlying Viola/Ellenburger carbonate-bearing
intervals, being the same formation subject to the field rules established by the Texas Railroad
Commission for the Newark East (Barnett Shale) field and (b) encompassing the entire correlative
interval from 6,672 feet to 7,166 feet as shown on the log of the Mitchell Energy Corporation — W.
C. Young Well No. 2, API No. [42-] 497-32613, W. Richey Survey, A-704, Wise County, Texas, as
designated by the Texas Railroad Commission as a single reservoir for proration purposes and
designated as the Newark, East (Barnett Shale) Field.

     “Business Day” shall mean a day (other than a Saturday or Sunday) on which commercial banks in
Texas are generally open for business.

     “Buyer” shall have the meaning set forth in the introductory paragraph herein.

     “Buyer Indemnified Parties” shall have the meaning set forth in Section 13.2.

     “Buyer’s Representatives” shall have the meaning set forth in Section 10.1(a).

2

 

     “CGI Contract” shall mean that certain Application Service Provider and Outsourcing Agreement,
dated June 1, 2000, between Applied Terravision Systems, Inc. (predecessor to CGI Technologies and
Solutions, Inc) and Range, as such contract may have been amended as of the date hereof.

     “Claim” shall have the meaning set forth in Section 13.7(b).

     “Claim Notice” shall have the meaning set forth in Section 13.7(b).

     “Clawback ORRI” shall have the meaning set forth in Schedule 13.4(d).

     “Closing” shall have the meaning set forth in Section 9.1.

     “Closing Date” shall have the meaning set forth in Section 9.1.

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Confidential Information” shall have the meaning set forth in Section 15.17.

     “Confidentiality Agreement” shall mean that certain Confidentiality Agreement, dated as of
November 29, 2010, among Seller and Buyer.

     “Contract” shall mean any written or oral contract, agreement, agreement regarding
indebtedness, indenture, debenture, note, bond, loan, collective bargaining agreement, lease,
mortgage, franchise, license agreement, purchase order, binding bid, commitment, letter of credit
or any other legally binding arrangement, including farmin and farmout agreements; participation,
exploration and development agreements, crude oil, condensate and natural gas purchase and sale,
gathering, transportation and marketing agreements; operating agreements; balancing agreements;
unitization agreements; processing agreements; facilities or equipment leases; production handling
agreements; and other similar contracts, but excluding, however, any Lease, easement, right-of-way,
permit or other instrument creating or evidencing an interest in the Assets or any real property
related to or used or held for use in connection with the operations of any Assets.

     “Cure Period” shall have the meaning set forth in Section 11.2(c).

     “Customary Post-Closing Consents” shall mean the consents and approvals from Governmental
Authorities for the assignment (directly or indirectly) of the Assets to Buyer that are customarily
obtained after such assignment of properties similar to the Assets.

     “Defect Deductible” shall mean $11,000,000.

     “Defensible Title” shall mean such title of RTP and/or EAOC to the Assets that, as of the
Effective Time and immediately prior to the Closing and subject to Permitted Encumbrances:

          (a) with respect to the Barnett Shale Formation for each Subject Well, entitles RTP to receive
during the entirety of the productive life of such Subject Well not less than the Net Revenue
Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such Subject Well,

3

 

except for (i) decreases in connection with those operations in which RTP or its successors or
assigns may from and after the date of this Agreement be a non-consenting co-owner, (ii) decreases
resulting from the establishment or amendment from and after the date of this Agreement of pools or
units, (iii) decreases required to allow other Working Interest owners to make up past
underproduction or pipelines to make up past under deliveries, and (iv) as otherwise expressly set
forth in Exhibit A-1 or Exhibit A-2, as applicable;

          (b) with respect to the Barnett Shale Formation for each Subject Well, obligates RTP to bear
during the entirety of the productive life of such Subject Well not more than the Working Interest
set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such Subject Well, except (i) increases
resulting from contribution requirements with respect to defaulting co-owners under applicable
operating agreements, (ii) increases to the extent that they are accompanied by a proportionate
increase in RTP’s Net Revenue Interest in such Subject Well, (iii) increases resulting from the
establishment or amendment from and after the date of this Agreement of pools or units to the
extent such establishment or amendment is permitted under Section 6.1, and (iv) as otherwise
expressly set forth in Exhibit A-1 or Exhibit A-2, as applicable; and

          (c) is free and clear of all Encumbrances.

     “Deposit” shall have the meaning set forth in Section 3.2.

     “DFW” shall have the meaning set forth in Section 6.10(b).

     “Dispute Notice” shall have the meaning set forth in Section 3.5.

     “DOJ” shall mean the Department of Justice.

     “EAOC” shall mean Energy Assets Operating Company, LLC, a Delaware limited liability company.

     “EAOC Allocation Schedule” shall have the meaning set forth in Section 3.8(b).

     “EAOC Assignment” shall mean the Assignment and Bill of Sale from EAOC to a wholly owned
Affiliate of Buyer pertaining to the EAOC Assets and substantially in the form of Exhibit C-2.

     “EAOC Assets” shall mean, collectively, all of EAOC’s right, title and interest in and to the
following, less and except the Excluded Assets:

          (a) to the extent that they may be assigned, all Applicable Contracts (i) by which any of the
other EAOC Assets are bound and that will be binding on Buyer after the Closing or (ii) that
primarily relate to the ownership, operation or development of the other EAOC Assets;

          (b) to the extent that they may be assigned, all Rights-of-Way, including the property
described in Exhibit A-4;

4

 

          (c) all equipment, machinery, fixtures and other personal and mixed property, operational and
nonoperational, known or unknown, located on any of the other EAOC Assets, which are material to
the ownership, operation or development of the other EAOC Assets or which are primarily used or
held for use in connection therewith, including, pipelines, gathering systems, pumps, motors,
fixtures, machinery, compression equipment, flow lines, processing and separation facilities,
structures, materials and other items primarily used in the operation thereof (the “EAOC Personal
Property”);

          (d) all Imbalances relating to the other EAOC Assets;

          (e) all claims, demands, damages, losses, costs, Liabilities, interest or causes of action
whatsoever, in Law or in equity, known or unknown, against any Third Party which RTP might now or
subsequently may have, to the extent specifically based on, relating to or arising out of the
Assumed Obligations, including rights to contribution under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended, breaches of statutory or implied
warranties, nuisance or other tort actions, rights to punitive damages, common Law rights of
contribution and rights under any Applicable Contracts (including audit rights); and

          (f) all of the files, records, information and data, whether written or electronically stored,
that primarily relate to the ownership, operation or development of the other EAOC Assets or that
specifically relate to the Assumed Obligations, in each case that are in EAOC’s or its Affiliates’
possession, including: (i) land and title records (including abstracts of title, title opinions
and title curative documents); (ii) Applicable Contract files; (iii) correspondence; (iv)
operations, environmental, health and safety, pipeline safety, production, accounting and Tax
records (other than those primarily relating to income or franchise Taxes), and (v) facility
records (the “EAOC Records”).

     “EAOC Personal Property” shall have the meaning set forth in the definition of “EAOC Assets”.

     “EAOC Records” shall have the meaning set forth in the definition of “EAOC Assets”.

     “Effective Time” shall mean 12:01 a.m. (Prevailing Central Time) on February 1, 2011.

     “Encumbrance” shall mean any lien, security interest, pledge, charge or similar encumbrance.

     “Environmental Arbitrator” shall have the meaning set forth in Section 12.1(d).

     “Environmental Claim Date” shall have the meaning set forth in Section 12.1(a).

     “Environmental Condition” shall mean (a) a condition with respect to the air, soil,
subsurface, surface waters, ground waters and/or sediments that causes Seller or any Affiliate of
Seller not to be in compliance with any Environmental Law, (b) the existence, with respect to the
Assets or the operation thereof, of any environmental pollution, contamination or degradation where
Remediation is presently required (or if known or confirmed, would be presently required) under
Environmental Laws or (c) any recognized environmental condition identified in any

5

 

Phase I environmental site assessment conducted pursuant to Article X that (i) relates to soil
or groundwater and (ii) if confirmed, would reasonably be expected to cost more than $500,000 to
remediate, respond to or take other corrective actions to attain (A) for Hazardous Substances that
are natural gas condensate or crude oil, the cleanup standards for total petroleum hydrocarbons,
benzene, toluene, ethylbenzene and xylene specified by the Texas Railroad Commission, and (B) for
Hazardous Substances that are not natural gas condensate or crude oil, to attain the protective
concentration levels for commercial/industrial uses provided pursuant to the Texas Risk Reduction
Program, 30 T.A.C. Chapter 350. For the avoidance of doubt, (1) the fact that a Well is no longer
capable of producing sufficient quantities of oil or gas to continue to be classified as a
“producing well” or that such a Well should be temporarily abandoned or permanently plugged and
abandoned shall, in each case, not solely form the basis of an Environmental Condition, (2) the
fact that a pipe is temporarily not in use shall not solely form the basis of an Environmental
Condition, and (3) except with respect to equipment (x) that causes or has caused any environmental
pollution, contamination or degradation where Remediation is presently required (or if known or
confirmed, would be presently required) under Environmental Laws or (y) the use or condition of
which is a violation of Environmental Law, the physical condition of any surface or subsurface
production equipment, including water or oil tanks, separators or other ancillary equipment, shall
not solely form the basis of an Environmental Condition.

     “Environmental Defect” shall mean, subject to Section 12.2, any Environmental Condition with
respect to an Asset that is not set forth in Schedule 4.14.

     “Environmental Defect Notice” shall have the meaning set forth in Section 12.1(a).

     “Environmental Defect Property” shall have the meaning set forth in Section 12.1(a).

     “Environmental Indemnity Agreement” shall have the meaning set forth in Section 12.1(b)(iv).

     “Environmental Laws” shall mean all applicable Laws in effect as of the date of this
Agreement, including common Law, relating to the protection of health, safety and welfare and the
environment, including those Laws relating to the generation storage, handling, use, treatment,
transportation, disposal or other management of chemicals and other Hazardous Substances. The term
“Environmental Laws” does not include good or desirable operating practices or standards that may
be voluntarily employed or adopted by other oil and gas well operators or recommended, but not
required, by a Governmental Authority.

     “Environmental Liability” shall mean any direct, indirect, pending or threatened Liability,
whether known or unknown, whether based on negligence, strict liability or otherwise, arising under
or relating to any Environmental Law, including natural resources damages.

     “Escrow Agent” shall mean JPMorgan Chase Bank, National Association.

     “Escrow Agreement” shall have the meaning set forth in Section 3.2.

     “ETP” shall have the meaning set forth in Section 6.10(b).

6

 

     “Excluded Assets” shall mean (a) all of Seller’s corporate minute books, financial records and
other business records that relate to Seller’s business generally (including the ownership and
operation of the Assets); (b) all trade credits, all accounts, receivables and all other proceeds,
income or revenues attributable to the Assets with respect to any period of time prior to the
Effective Time; (c) all claims and causes of action of Seller arising under or with respect to any
Applicable Contracts that are attributable to periods of time prior to the Effective Time
(including claims for adjustments or refunds), except to the extent such claims or causes of action
of Seller specifically relate to the Assumed Obligations; (d) subject to Section 11.3, all rights
and interests relating to the Assets (i) under any existing policy or agreement of insurance, (ii)
under any bond or (iii) to any insurance or condemnation proceeds or awards arising, in each case,
from acts, omissions or events, or damage to or destruction of property; (e) all Hydrocarbons
produced and sold from the RTP Assets with respect to all periods prior to the Effective Time; (f)
all claims of Seller or its Affiliates for refunds of or loss carry forwards with respect to (i)
production or any other Taxes paid by Seller or its Affiliates attributable to any period prior to
the Effective Time, (ii) income Taxes paid by Seller or its Affiliates or (iii) any Taxes
attributable to the Excluded Assets; (g) all personal computers and associated peripherals and all
radio and telephone equipment; (h) all of Seller’s proprietary computer software, patents, trade
secrets, copyrights, names, trademarks, logos and other intellectual property; (i) all documents
and instruments of Seller that may be protected by an attorney-client privilege to the extent
relating to the Retained Obligations; (j) all data that cannot be disclosed to Buyer as a result of
confidentiality arrangements under agreements with Third Parties; (k) all audit rights arising
under any of the (i) Applicable Contracts or otherwise with respect to any period prior to the
Effective Time or (ii) other Excluded Assets, except for any Imbalances and except to the extent
such rights specifically relate to the Assumed Obligations; (l) all geophysical and other seismic
and related technical data and information relating to the Assets to the extent that such
geophysical and other seismic and related technical data and information is not transferable
without payment of a fee or other penalty to any Third Party under any Contract and which Buyer has
not separately agreed in writing to pay; (m) documents prepared or received by Seller or its
Affiliates with respect to (i) lists of prospective purchasers for the Assets, (ii) bids submitted
by other prospective purchasers of the Assets, (iii) analyses by Seller or its Affiliates of any
bids submitted by any prospective purchaser, (iv) correspondence between or among Seller, its
representatives and any prospective purchaser other than Buyer and (v) correspondence between
Seller or any of its representatives with respect to any of the bids, the prospective purchasers or
the transactions contemplated by this Agreement; (n) any offices, office leases and any office
furniture or office supplies located in or on such offices or office leases; (o) any assets
described in subsections (d), (e) or (h) of the definition of “RTP Assets” or in subsections (a) or
(b) of the definition of “EAOC Assets” (in each case) that are excluded pursuant to Section
11.2(d)(iii), Section 11.4 or Section 12.1(b)(iii); (p) the property set forth on Exhibit B-1,
including the surface of the real property in Hood County, Texas commonly known as the “Mitchell
Ranch”; (q) subject to the provisions of Section 6.9, the assets set forth on Exhibit B-2 (such
property, the “Retained Assets”); (r) if excluded pursuant to the provisions of Section 6.10, the
Permit Issue Properties; (s) other than the Assumed Hedges, all Hedge Contracts; (t) the CGI
Contract; and (u) any Contracts that constitute master services agreements or similar contracts.

     “Final Price” shall have the meaning set forth in Section 3.5.

7

 

     “Final Settlement Statement” shall have the meaning set forth in Section 3.5.

     “Franchise Tax Liability” shall mean any Liability for Tax imposed by a state on Seller’s or
any of its Affiliates’ gross or net income and/or capital for the privilege of engaging in business
in that state (including Texas margin Tax liability) that was or is attributable to RTP’s ownership
of the RTP Assets or EAOC’s ownership of the EAOC Assets.

     “FTC” shall mean the Federal Trade Commission.

     “Fundamental Representations” shall mean the representations and warranties of Seller set
forth in Section 4.1, Section 4.2, Section 4.3(a)(i), Section 4.3(b)(i), Section 4.3(c)(i), Section
4.15, Section 4.16 and Section 4.17.

     “Future Location” shall mean, for each Future Well identified on Exhibit A-2, the location for
such Future Well set forth on the map contained on Exhibit A-3.

     “Future Well” shall mean a well identified on Exhibit A-2 to be drilled in the future on a
Future Location identified for such well on the map set forth on Exhibit A-3, to the extent such
well is drilled to and within the Barnett Shale Formation.

     “GAAP” shall mean generally accepted accounting principles in the United States, consistently
applied.

     “Gap Period Property/Personal Injury Losses” shall mean all Liabilities for property damage or
personal injury or death (a) that arise from or are attributable to the (i) the ownership,
operation or development of the Assets and (ii) the period of time from and after the Effective
Time up to the date of this Agreement, and (b) for which Seller receives insurance proceeds with
respect to such Liabilities, but only to the extent of the amount of such insurance proceeds so
received.

     “Governmental Authority” shall mean any federal, state, local, municipal, tribal or other
government; any governmental, regulatory or administrative agency, commission, body or other
authority exercising or entitled to exercise any administrative, executive, judicial, legislative,
regulatory or taxing authority or power, and any court or governmental tribunal, including any
tribal authority having or asserting jurisdiction.

     “Hazardous Substances” shall mean any pollutants, contaminants, toxics or hazardous or
extremely hazardous substances, materials, wastes, constituents, compounds or chemicals that are
regulated by, or may form the basis of liability under, any Environmental Laws, including NORM and
other substances referenced in Section 12.2.

     “Hedge Contract” shall mean any swap, forward, future or derivative transaction or option or
other similar hedge agreement.

     “Hedge Proceeds” shall mean, with respect to any Subject Hedge, the remainder of (a) the
amount to which Seller is entitled under the terms of the Subject Hedge (without offset or netting
of amounts under any other Hedge Contract transaction with the Assumed Hedge Counterparty that is a
party to such Subject Hedge), including (i) any cash, and (ii) any net proceeds Seller would be
entitled to under such Subject Hedge from the exercise by Seller of its

8

 

rights to any letters of credit, guaranties or other credit support provided by such Assumed
Hedge Counterparty, minus (b) the amount by which (i) the amount which the Assumed Hedge
Counterparty fails to pay to Seller (without regard to any credit support) because of a breach by
such Assumed Hedge Counterparty of such Subject Hedge or the insolvency or bankruptcy of such
Assumed Hedge Counterparty, exceeds (ii) the net proceeds actually received by Seller under such
Subject Hedge from the exercise by Seller of its rights to any letters of credit, guaranties or
other credit support provided by such Assumed Hedge Counterparty.

     “HSR Act” shall mean the Hart Scott Rodino Antitrust Improvements Act of 1976, as amended, and
the rules and regulations thereunder.

     “Hydrocarbons” shall mean oil and gas and other hydrocarbons produced or processed in
association therewith.

     “Imbalances” shall mean all Well Imbalances and Pipeline Imbalances.

     “Income Tax Liability” shall mean any Liability of Seller or its Affiliates attributable to
any federal, state or local income Tax measured by or imposed on the net income, profits, revenue
or similar measure that was or is attributable to (a) RTP’s ownership of the RTP Assets or (b)
EAOC’s ownership of the EAOC Assets.

     “Indemnifying Party” shall have the meaning set forth in Section 13.7(a).

     “Indemnity Deductible” shall mean $11,000,000.

     “Individual Environmental Defect Threshold” shall have the meaning set forth in Section
12.1(d).

     “Individual Title Defect Threshold” shall have the meaning set forth in Section 11.2(i).

     “Invasive Activities” shall have the meaning set forth in Section 10.1(c).

     “Knowledge” shall mean with respect to Seller, the actual knowledge (without investigation) of
the following Persons: Mark Whitley, Mike Middlebrook, Mark Hansen, Neal Harrington, Chad
Stephens, David Poole, Dori Ginn and Jeff Eatherton.

     “Law” shall mean any applicable statute, law (including common law), rule, regulation,
ordinance, order, code, ruling, writ, injunction, decree or other official act of or by any
Governmental Authority.

     “Leases” shall have the meaning set forth in the definition of “RTP Assets”.

     “Liabilities” shall mean any and all claims, causes of action, payments, charges, judgments,
assessments, liabilities, losses, damages, penalties, fines and costs and expenses, including any
attorneys’ fees, legal or other expenses incurred in connection therewith and including
liabilities, costs, losses and damages for personal injury or death or property damage or
environmental damage or remediation.

9

 

     “Material Adverse Effect” shall mean an event or circumstance that, individually or in the
aggregate, results in a material adverse effect on the (i) ownership, operation or value of the
Assets, taken as a whole and as currently operated as of the date of this Agreement, or (ii)
ability of Seller to consummate the transactions contemplated by this Agreement and perform its
obligations hereunder; provided, however, that a Material Adverse Effect shall not include any
material adverse effects resulting from: (a) entering into this Agreement or the announcement of
the transactions contemplated by this Agreement; (b) changes in general market, economic, financial
or political conditions (including changes in commodity prices, fuel supply or transportation
markets, interest or rates) in the area in which the Assets are located, the United States or
worldwide; (c) changes in conditions or developments generally applicable to the oil and gas
industry in the area where the Assets are located; (d) acts of God, including storms or
meteorological events; (e) acts or failures to act of Governmental Authorities; (f) civil unrest or
similar disorder, the outbreak of hostilities, terrorist acts or war; (g) matters that are cured or
no longer exist by the earlier of the Closing and the termination of this Agreement, without cost
to Buyer; (h) a change in Laws from and after the date of this Agreement; (i) reclassification or
recalculation of reserves in the ordinary course of business; (j) changes in the prices of
Hydrocarbons; and (k) natural declines in well performance.

     “Material Contract” shall have the meaning set forth in Section 4.8(a).

     “Mitchell Ranch Surface Use Agreement” shall have the meaning set forth in Section 9.3(h).

     “Mitchell Ranch Lease” shall mean the Lease described on Exhibit A and identified as
pertaining to the Mitchell Ranch.

     “Net Revenue Interest” shall mean, with respect to any Subject Well, the interest in and to
all Hydrocarbons produced, saved and sold from or allocated to such Subject Well, after giving
effect to all royalties, overriding royalties, production payments, carried interests, net profits
interests, reversionary interests and other burdens upon, measured by or payable out of production
therefrom.

     “NORM” shall mean naturally occurring radioactive material.

     “Novation Agreements” shall mean, collectively, each ISDA Novation Agreement by and among an
Assumed Hedge Counterparty, Range and Buyer pursuant to which Range will novate the Assumed Hedges
to Buyer.

     “Operating Expenses” shall have the meaning set forth in Section 2.3.

     “Operative Transaction Documents” shall mean the Assignments, Novation Agreements, Transition
Services Agreement, Mitchell Ranch Surface Use Agreement and Escrow Agreement, collectively.

     “Party” and “Parties” shall have the meaning set forth in the introductory paragraph herein.

     “Pending Actions” shall mean items 7, 8 and 9 set forth on Schedule 4.7.

10

 

     “Permit Amendment” shall have the meaning set forth in Schedule 6.10(a).

     “Permit Cut-Off Date” shall have the meaning set forth in Section 6.10(b).

     “Permit Issue” shall have the meaning set forth in Schedule 6.10(a).

     “Permit Issue Properties” shall mean the assets described in Schedule 6.10(b).

     “Permit Property Amount” shall have the meaning set forth in Schedule 6.10(a).

     “Permitted Encumbrances” shall mean:

          (a) the terms and conditions of all Leases and all lessor’s royalties, non-participating
royalties, overriding royalties, reversionary interests and similar burdens upon, measured by or
payable out of production if the net cumulative effect of such Leases and burdens does not operate
to reduce the Net Revenue Interest of RTP in any Subject Well to an amount less than the Net
Revenue Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such Subject Well and
does not obligate RTP to bear a Working Interest with respect to any Subject Well in any amount
greater than the Working Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such
Subject Well (unless the Net Revenue Interest for such Subject Well is greater than the Net Revenue
Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, in the same proportion as any
increase in such Working Interest);

          (b) the terms and conditions of the Rights-of-Way included in the Assets;

          (c) preferential rights to purchase and required consents to assignment and similar
agreements;

          (d) liens for Taxes or assessments not yet due or delinquent;

          (e) Customary Post-Closing Consents;

          (f) conventional rights of reassignment upon final intention to abandon or release any of the
Assets;

          (g) such Title Defects as Buyer may have waived in writing or pursuant to Section 11.2(a);

          (h) all applicable Laws, and rights reserved to or vested in any Governmental Authority (i) to
control or regulate any Asset in any manner; (ii) by the terms of any right, power, franchise,
grant, license or permit, or by any provision of Law, to terminate such right, power, franchise
grant, license or permit or to purchase, condemn, expropriate or recapture or to designate a
purchaser of any of the Assets; (iii) to use such property in a manner which would not reasonably
be expected to materially impair the use of such property for the purposes for which it is
currently owned and operated or for the drilling, completion, ownership or operation of any Future
Well; or (iv) to enforce any obligations or duties affecting the Assets to any Governmental
Authority with respect to any franchise, grant, license or permit, in each of the foregoing
described cases, to the extent that same do not, individually or in the aggregate, reduce

11

 

Seller’s Net Revenue Interest with respect to any Subject Well below that shown in set forth
in Exhibit A-1 or Exhibit A-2, as applicable, for such Subject Well or increase Seller’s share of
costs and expenses with respect to any Subject Interest above that shown in set forth in Exhibit
A-1 or Exhibit A-2, as applicable, for such Subject Well without a corresponding and proportionate
increase in Net Revenue Interest of Seller;

          (i) rights of a common owner of any interest in rights-of-way, permits or easements held by
Seller and such common owner as tenants in common or through common ownership to the extent,
individually or in the aggregate, such rights would not reasonably be expected to materially impair
the operation or use of any of the Assets as currently operated and used or for the drilling,
completion, ownership or operation of any Future Well;

          (j) easements, conditions, covenants, restrictions, servitudes, permits, rights-of-way,
surface leases and other rights in the Assets for the purpose of operations, facilities, pipelines,
transmission lines, transportation lines, distribution lines and other like purposes, or for the
joint or common use of rights-of-way, facilities and equipment, to the extent, individually or in
the aggregate, such rights would not reasonably be expected to materially impair the operation or
use of any of the Assets as currently operated and used for the drilling, completion, ownership or
operation of any Future Well;

          (k) vendors, carriers, warehousemen’s, repairmen’s, mechanics’, workmen’s, materialmen’s,
construction or other like liens arising by operation of Law in the ordinary course of business or
incident to the construction or improvement of any property in respect of obligations which are not
yet due or delinquent;

          (l) liens created under Leases or Rights-of-Way included in the Assets and/or operating
agreements or by operation of Law in respect of obligations that are not yet due or delinquent;

          (m) any Encumbrance affecting the Assets that is discharged by Seller at or prior to Closing;

          (n) any matters referenced in Exhibit A, Exhibit A-1, Exhibit A-2 or Exhibit A-4;

          (o) the terms and conditions of the Material Contracts set forth in Schedule 4.8; provided the
same do not operate to reduce the Net Revenue Interest of RTP in any Subject Well to an amount less
than the Net Revenue Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such
Subject Well and do not obligate RTP to bear a Working Interest with respect to any Subject Well in
any amount greater than the Working Interest set forth in Exhibit A-1 or Exhibit A-2, as
applicable, for such Subject Well (unless the Net Revenue Interest of RTP for such Subject Well is
greater than the Net Revenue Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, in
the same proportion as any increase in such Working Interest);

          (q) all litigation set forth in Schedule 4.7; and

          (r) all other Encumbrances, Contracts, instruments, obligations, defects and irregularities
affecting the Assets that, individually or in the aggregate, (i) are not such as would

12

 

reasonably be expected to materially impair the operation or use of any of the Assets as
currently operated and used or for the drilling, completion, ownership or operation of any Future
Well, (ii) do not reduce the Net Revenue Interest of RTP in any Subject Well to an amount less than
the Net Revenue Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such Subject
Well, (iii) do not obligate RTP to bear a Working Interest in any Subject Well in any amount
greater than the Working Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, for such
Subject Well (unless the Net Revenue Interest for such Subject Well is greater than the Net Revenue
Interest set forth in Exhibit A-1 or Exhibit A-2, as applicable, in the same proportion as any
increase in such Working Interest), or (iv) would not reasonably be expected to materially impair
Seller’s right to enforce any obligations or duties affecting the Assets to any Governmental
Authority with respect to any franchise, grant, license or permit.

     “Person” shall mean any individual, firm, corporation, partnership, limited liability company,
joint venture, association, trust, unincorporated organization, Governmental Authority or any other
entity.

     “Personal Property” shall mean the EAOC Personal Property and the RTP Personal Property.

     “Pipeline Imbalance” shall mean any marketing imbalance between the quantity of Hydrocarbons
attributable to the Assets required to be delivered by Seller under any Contract or Law relating to
the purchase and sale, gathering, transportation, storage, processing or marketing of such
Hydrocarbons and the quantity of Hydrocarbons attributable to the Assets actually delivered by
Seller pursuant to the relevant Contract or at Law, together with any appurtenant rights and
obligations concerning production balancing at the delivery point into the relevant sale,
gathering, transportation, storage or processing facility.

     “Pre-Closing Tax Return” shall have the meaning set forth in Section 15.2(c).

     “Preferential Purchase Right” shall have the meaning set forth in Section 11.4(a)

     “Preliminary Settlement Statement” shall have the meaning set forth in Section 3.4.

     “Property Taxes” shall mean ad valorem, property, excise, severance, production or similar
Taxes (including any interest, fine, penalty or additions to Tax imposed by a Governmental
Authority in connection with such Taxes) based upon operation or ownership of the Assets or the
production of Hydrocarbons therefrom but excluding, for the avoidance of doubt, (a) income, capital
gains, franchise Taxes and similar Taxes, and (b) Transfer Taxes.

     “Purchase Price” shall have the meaning set forth in Section 3.1.

     “Range” shall have the meaning set forth in the introductory paragraph herein.

     “Range Allocation Schedule” shall have the meaning set forth in Section 3.8(c).

     “Records” shall mean the RTP Records and the EAOC Records.

13

 

     “Remediation” shall mean the implementation and completion of the most commercially reasonable
and cost effective remedial, removal, response, construction, closure, disposal or other corrective
actions specified or allowed under Environmental Laws to correct or remove an Environmental
Condition.

     “Remediation Amount” shall mean, with respect to an Environmental Condition, the present value
as of the Closing Date (using an annual discount rate of 10%) of the cost (net to RTP’s or EAOC’s
interest, as applicable, prior to the consummation of the transactions contemplated by this
Agreement) of the Remediation of such Environmental Condition.

     “Required Consent” shall have the meaning set forth in Section 11.4(d).

     “Retained Assets” shall have the meaning set forth in the definition of “Excluded Assets”.

     “Retained Asset Call Option” shall have the meaning set forth in Section 6.9(b).

     “Retained Asset Cut-Off Date” shall have the meaning set forth in Section 6.9(a).

     “Retained Obligations” shall have the meaning set forth in Section 13.1.

     “Rights-of-Way” shall mean all permits, licenses, servitudes, easements, fee surface, surface
leases and rights-of-way used or held for use in connection with the ownership or operation of the
Assets.

     “RPC” shall have the meaning set forth in Section 4.6.

     “RTP” shall have the meaning set forth in the introductory paragraph herein.

     “RTP Allocation Schedule” shall have the meaning set forth in Section 3.8(a).

     “RTP Assets” shall mean, collectively, all of RTP’s right, title and interest in and to the
following, less and except the Excluded Assets:

          (a) the oil and gas leases, fee mineral interests and other mineral interests described in
Exhibit A (such interest in such leases and mineral interests, the “Leases”), together with any and
all other rights, titles and interests of RTP in and to the lands covered or burdened thereby, and
all other interests of RTP of any kind or character in such Leases;

          (b) all wells (including all disposal or injection wells) located on any of the Leases or on
any other lease or lands with which any Lease has been unitized (such interest in such wells,
including the wells set forth in Exhibit A-1, the “Wells”), and in all Hydrocarbons produced
therefrom or allocated thereto;

          (c) all rights and interests in, under or derived from all unitization or pooling agreements
in effect with respect to any of the Leases or Wells and the units created thereby (the “Units”);

14

 

          (d) to the extent that they may be assigned, all Applicable Contracts (i) by which any of the
other RTP Assets are bound and that will be binding on Buyer after the Closing or (ii) that
primarily relate to the ownership, operation or development of the other RTP Assets;

          (e) to the extent that they may be assigned, all Rights-of-Way that are used primarily in
connection with the ownership or operation of any of the Leases, Wells, Units or other RTP Assets,
including the Rights-of-Way owned by RTP set forth in Exhibit A;

          (f) all equipment, machinery, fixtures and other personal and mixed property, operational and
nonoperational, known or unknown, located on any of the Leases, Wells, Units or other RTP Assets,
which are material to the ownership, operation or development of the Leases, Well, Units or other
RTP Assets or which are primarily used or held for use in connection therewith, including,
pipelines, gathering systems, well equipment, casing, tubing, pumps, motors, fixtures, machinery,
compression equipment, flow lines, processing and separation facilities, structures, materials and
other items primarily used in the operation thereof (the “RTP Personal Property”);

          (g) all Imbalances relating to the other RTP Assets;

          (h) all non-proprietary or proprietary geophysical, seismic and related technical data (in
each case) that (i) are owned by RTP or its Affiliates, (ii) are transferable without payment of a
fee or other penalty to any Third Party under any Contract and which Buyer has not separately
agreed in writing to pay, and (iii) primarily relate to the Leases, Wells, Units or other RTP
Assets;

          (i) all claims, demands, damages, losses, costs, Liabilities, interest or causes of action
whatsoever, in Law or in equity, known or unknown, against any Third Party which EAOC might now or
subsequently may have, to the extent specifically based on, relating to or arising out of the
Assumed Obligations, including rights to contribution under the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended, breaches of statutory or implied
warranties, nuisance or other tort actions, rights to punitive damages, common Law rights of
contribution and rights under any Applicable Contracts (including audit rights);

          (j) the Retained Asset Call Option; and

          (k) all of the files, records, information and data, whether written or electronically stored,
that primarily relate to the ownership, operation or development of the other RTP Assets or that
specifically relate to the Assumed Obligations, in each case that are in RTP’s or its Affiliates’
possession, including: (i) land and title records (including abstracts of title, title opinions
and title curative documents); (ii) Applicable Contract files; (iii) correspondence; (iv)
operations, environmental, health and safety, pipeline safety, production, accounting and Tax
records (other than those primarily relating to income or franchise Taxes), and (v) facility and
well records (the “RTP Records”).

     “RTP Assignment” shall mean the Assignment and Bill of Sale from RTP to Buyer pertaining to
the RTP Assets and substantially in the form of Exhibit C-1.

15

 

     “RTP Personal Property” shall have the meaning set forth in the definition of “RTP Assets”.

     “RTP Records” shall have the meaning set forth in the definition of “RTP Assets”.

     “Seller” shall have the meaning set forth in the introductory paragraph of this Agreement.

     “Seller Indemnified Parties” shall have the meaning set forth in Section 13.3.

     “Special Warranty Deed” shall mean the Special Warranty Deed from RTP to Buyer pertaining to
the Special Warranty Deed Property and substantially in the form of Exhibit C-3.

     “Special Warranty Deed Property” shall mean the fee mineral interests and fee surface set
forth on Exhibit A.

     “Specified Covenants” shall mean Seller’s covenants and agreements set forth in Section 2.3,
Section 3.3, Section 3.4, Section 3.5, Section 3.6, Section 3.7, Section 3.8, Section 6.2, Section
6.8, Section 6.9, Section 6.10, Section 9.4, Section 11.2(j), Section 11.3(b), Section 11.4(b),
Section 11.4(d), Section 12.1(e), Section 13.2(c), Section 13.2(d), Section 13.2(e), Section
13.2(f), Section 13.2(g), Section 13.2(h), Section 13.5, Section 13.7, Section 13.11, Section 15.2,
Section 15.3, Section 15.5, Section 15.6, Section 15.7, Section 15.9(b), Section 15.12, Section
15.13, Section 15.14, Section 15.17 and Section 15.18.

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

     “Subject Hedges” shall have the meaning set forth in Section 6.8.

     “Subject Permit” shall have the meaning set forth in Schedule 6.10(a).

     “Subject Well” shall mean a Well or a Future Well, as the context requires.

     “Tax” or “Taxes” shall mean all taxes, assessments, duties, levies, imposts or other similar
charges imposed by a Governmental Authority, including all income, franchise, profits, capital
gains, capital stock, transfer, gross receipts, sales, use, transfer, service, occupation, ad
valorem, property, excise, severance, windfall profit, premium, stamp, license, payroll,
employment, social security, unemployment, disability, environmental (including taxes under Code
Section 59A), alternative minimum, add-on, value-added, withholding (including backup withholding)
and other taxes, assessments, duties, levies, imposts or other similar charges of any kind
whatsoever (whether payable directly or by withholding and whether or not requiring the filing of a
Tax Return), and all estimated taxes, deficiency assessments, additions to tax, additional amounts
imposed by any Governmental Authority, penalties and interest.

     “Taxing Authority” shall mean, with respect to any Tax, the Governmental Authority that
imposes such Tax, and the Governmental Authority (if any) charged with the collection of such Tax,
including any Governmental Authority that imposes, or is charged with collecting, social security
or similar charges or premiums.

16

 

     “Tax Partnership” shall have the meaning set forth in Section 4.16.

     “Tax Returns” shall mean any report, return, election, document, estimated Tax filing,
declaration or other filing provided to any Taxing Authority, including any amendments thereto.

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

     “Title Arbitrator” shall have the meaning set forth in Section 11.2(j).

     “Title Benefit” shall mean with respect to the Barnett Shale Formation for any Subject Well,
any right, circumstance or condition existing as of the Effective Time or immediately prior to
Closing that operates (a) to increase the Net Revenue Interest of RTP in any Subject Well above
that shown for such Subject Well in Exhibit A-1 or Exhibit A-2, as applicable, to the extent the
same does not cause a greater than proportionate increase in RTP’s Working Interest therein above
that shown in Exhibit A-1 or Exhibit A-2, as applicable; in each case except for (i) increases in
connection with those operations in which any Third Party may from and after the date of this
Agreement be a non-consenting co-owner, (ii) increases resulting from the establishment or
amendment from and after the date of this Agreement of pools or units, or (iii) increases required
to allow RTP to make up past underproduction or pipelines to make up past over deliveries to the
extent such Imbalances are attributable to periods after the Effective Time, or (b) to decrease the
Working Interest of RTP in any Subject Well below that shown for such Subject Well in Exhibit A-1
or Exhibit A-2, as applicable, to the extent the same causes a decrease in RTP’s Working Interest
that is proportionately greater than the decrease in RTP’s Net Revenue Interest therein below that
shown in Exhibit A-1 or Exhibit A-2, as applicable.

     “Title Benefit Amount” shall have the meaning set forth in Section 11.2(e).

     “Title Benefit Notice” shall have the meaning set forth in Section 11.2(b).

     “Title Claim Date” shall have the meaning set forth in Section 11.2(a).

     “Title Defect” shall mean any Encumbrance, defect or other matter that causes RTP or EAOC not
to have Defensible Title; provided that the following shall not be considered Title Defects:

          (a) defects arising out of lack of corporate or other entity authorization unless Buyer
provides affirmative evidence that such corporate or other entity action was not authorized and
would result in another Person’s superior claim of title to the relevant Asset;

          (b) defects based on a gap in Seller’s or EAOC’s chain of title in the applicable county
records, unless such gap is affirmatively shown to exist in such records by an abstract of title,
title opinion or landman’s title chain or run sheet which documents shall be included in a Title
Defect Notice;

          (c) defects based upon the failure to record any state Leases or Rights-of-Way included in the
Assets or any assignments of interests in such Leases or Rights-of-Way included

17

 

in the Assets in any applicable county records to the extent that such failure would not
result in another Person’s superior claim of title to the relevant Asset;

          (d) any Encumbrance or loss of title resulting from Seller’s conduct of business in compliance
with this Agreement;

          (e) in the case of a Future Well, any permits, easements, rights-of-way, unit designations or
production and drilling units not yet obtained, formed or created;

          (f) defects based upon the exercise of any Preferential Rights;

          (g) Encumbrances created under deeds of trust, mortgages and similar instruments by the lessor
under a Lease covering the lessor’s surface and mineral interests in the land covered thereby that
would customarily be accepted in taking or purchasing such Leases and for which a reasonably
prudent lessee would not customarily seek a subordination of such Encumbrance to the oil and gas
leasehold estate prior to conducting drilling activities on the Lease; and

          (h) encumbrances created under deeds of trust, mortgages and similar instruments by the
grantor under a Right-of-Way that would customarily be accepted by a reasonably prudent oil and gas
operator or reasonably prudent pipeline owner in taking or purchasing such Rights-of-Way; and

          (i) with respect to the RTP Assets, any defects affecting ownership interests in formations
other than the Barnett Shale Formation.

     “Title Defect Amount” shall have the meaning set forth in Section 11.2(g).

     “Title Defect Notice” shall have the meaning set forth in Section 11.2(a).

     “Title Defect Property” shall have the meaning set forth in Section 11.2(a).

     “Title Indemnity Agreement” shall have the meaning set forth in Section 11.2(d)(ii).

     “Transaction Documents” shall mean those documents executed and delivered pursuant to or in
connection with this Agreement.

     “Transfer Taxes” shall have the meaning set forth in Section 15.2(b).

     “Transition Services Agreement” shall have the meaning set forth in Section 6.7.

     “Treasury Regulations” shall mean the regulations promulgated by the United States Department
of the Treasury pursuant to and in respect of provisions of the Code. All references herein to
sections of the Treasury Regulations shall include any corresponding provision or provisions of
succeeding, similar, substitute, proposed or final Treasury Regulations.

     “Units” shall have the meaning set forth in the definition of “RTP Assets”.

     “Wells” shall have the meaning set forth in the definition of “RTP Assets”.

18

 

     “Well Imbalance” shall mean any imbalance at the wellhead between the amount of Hydrocarbons
produced from a Well and allocable to the interests of RTP therein and the shares of production
from the relevant Well to which RTP is entitled, together with any appurtenant rights and
obligations concerning future in kind and/or cash balancing at the wellhead.

     “Working Interest” shall mean, with respect to any Subject Well, the interest in and to such
Subject Well that is burdened with the obligation to bear and pay costs and expenses of
maintenance, development and operations on or in connection with such Subject Well, but without
regard to the effect of any royalties, overriding royalties, production payments, net profits
interests and other similar burdens upon, measured by or payable out of production therefrom.

     1.2 References and Rules of Construction. All references in this Agreement to Exhibits,
Schedules, Articles, Sections, subsections and other subdivisions refer to the corresponding
Exhibits, Schedules, Articles, Sections, subsections and other subdivisions of or to this Agreement
unless expressly provided otherwise. Titles appearing at the beginning of any Articles, Sections,
subsections and other subdivisions of this Agreement are for convenience only, do not constitute
any part of this Agreement, and shall be disregarded in construing the language hereof. The words
“this Agreement,” “herein,” “hereby,” “hereunder” and “hereof,” and words of similar import, refer
to this Agreement as a whole and not to any particular Article, Section, subsection or other
subdivision unless expressly so limited. The words “this Article,” “this Section” and “this
subsection,” and words of similar import, refer only to Article, Section or subsection hereof in
which such words occur. Wherever the words “include,” “includes” or “including” are used in this
Agreement, they shall be deemed to be followed by the words “without limiting the foregoing in any
respect.” All references to “$” or “dollars” shall be deemed references to United States dollars.
Each accounting term not defined herein will have the meaning given to it under GAAP as interpreted
as of the date of this Agreement. Pronouns in masculine, feminine or neuter genders shall be
construed to state and include any other gender, and words, terms and titles (including terms
defined herein) in the singular form shall be construed to include the plural and vice versa,
unless the context otherwise requires.

     1.3 Treatment of Retained Assets. Notwithstanding any other provision hereof to the contrary:

          (a) The Retained Assets shall constitute “RTP Assets” and the Wells and Future Wells included
in the Retained Assets shall constitute “Subject Wells” (in each case) for the purposes (i) the
Title Defect and Title Benefit provisions of Section 11.1 and Section 11.2, (ii) the related
Purchase Price adjustment provisions of Section 3.3(b)(ii) and (iii) the corresponding definitions
used in any of the foregoing provisions; and

          (b) The Retained Assets shall constitute “RTP Assets” for the purposes of (i) the
Environmental Defect provisions of Section 12.1, (ii) the related Purchase Price adjustment
provisions of Section 3.3(b)(iii) and (iii) the corresponding definitions used in any of the
foregoing provisions.

          (c) For purposes of the foregoing, the Allocated Values of the Retained Assets shall be those
amounts set forth on Exhibit B-2 for the “Subject Wells” thereon.

19

 

ARTICLE II

PURCHASE AND SALE

     2.1 Purchase and Sale. Subject to the terms and conditions of this Agreement, Seller agrees
to sell, and Buyer agrees to purchase and pay for (a) the RTP Assets, (b) the EAOC Assets and (c)
the Assumed Hedges.

     2.2 Excluded Assets. Seller shall reserve and retain all of the Excluded Assets and all
Retained Obligations.

     2.3 Revenues and Expenses. Subject to the provisions hereof (including Section 3.3(a)(iii)),
Seller shall be entitled to all of the rights of ownership attributable to the Assumed Hedges and
to the Assets (including the right to all production, proceeds of production and other proceeds)
and shall remain responsible for all Operating Expenses, in each case, attributable to the period
of time prior to the Effective Time. Subject to the provisions hereof, and subject to the
occurrence of the Closing, Buyer shall be entitled to all of the rights of ownership attributable
to the Assumed Hedges and to the Assets (including the right to all production, proceeds of
production and other proceeds), and shall be responsible for all Operating Expenses, in each case,
from and after the Effective Time. Subject to the provisions hereof (including Section 3.3(a)(iii)
and Section 15.2(b)), all Operating Expenses that are: (a) incurred with respect to operations
conducted or production prior to the Effective Time shall be paid by or allocated to Seller and (b)
incurred with respect to operations conducted or production from and after the Effective Time shall
be paid by or allocated to Buyer. “Operating Expenses” means all costs attributable to the Assumed
Hedges, if any, and all operating expenses (including Property Taxes but excluding in all cases,
all costs and expenses of bonds, letters of credit or other surety instruments or insurance
premiums or any other costs of insurance attributable to Seller’s and/or its Affiliates’ insurance
and to coverage periods from and after the Effective Time) and capital expenditures incurred in the
ownership and operation of the Assets in the ordinary course of business and, where applicable, in
accordance with the relevant operating or unit agreement, if any, and overhead costs charged to the
Assets under the relevant operating agreement or unit agreement, if any, but excluding Liabilities
attributable to (i) personal injury or death, property damage or violation of any Law, (ii)
obligations to plug wells and dismantle or decommission facilities, (iii) the Remediation of any
Environmental Condition under applicable Environmental Laws, (iv) obligations with respect to
Imbalances, (v) obligations to pay Working Interests, royalties, overriding royalties or other
interest owners revenues or proceeds attributable to sales of Hydrocarbons relating to the Assets,
including those held in suspense, or (vi) obtaining the Permit Amendment pursuant to Section 6.10.
After Closing, each Party shall be entitled to participate in all joint interest audits and other
audits of Operating Expenses for which such Party is entirely or in part responsible under the
terms of this Section 2.3.

ARTICLE III

PURCHASE PRICE

     3.1 Purchase Price. The aggregate purchase price for the RTP Assets, EAOC Assets and the
Assumed Hedges shall be Nine Hundred Million Dollars ($900,000,000.00) (the “Purchase Price”),
adjusted in accordance with this Agreement and payable by Buyer to Range

20

 

on behalf of Seller at Closing by wire transfer in same day funds to a bank account of Range
(the details of which shall be provided by Range to Buyer in the Preliminary Settlement Statement).

     3.2 Deposit. Concurrently with the execution of this Agreement Buyer has deposited by wire
transfer in same day funds with the Escrow Agent the sum of $45,000,000 (such sum, together with
all interest earned thereon, the “Deposit”). The Deposit will be held by the Escrow Agent pursuant
to the terms of this Section 3.2 and a mutually agreeable escrow agreement among Seller, Buyer and
the Escrow Agent (the “Escrow Agreement”). If Closing occurs, the Parties shall jointly instruct
the Escrow Agent in writing pursuant to the terms of the Escrow Agreement to release the Deposit to
Seller and the Deposit shall be applied toward the Purchase Price.

          (a) If (i) all conditions precedent to the obligations of Buyer set forth in Article VII
(other than those actions or deliveries to occur at Closing) have been met or waived by Buyer, and
(ii) the transactions contemplated by this Agreement are not consummated because of: (A) the
failure of Buyer to materially perform any of its obligations hereunder, or (B) the failure of any
of Buyer’s representations or warranties hereunder to be true and correct in all material respects
as of the date of this Agreement and the Closing, then, in such event, Seller shall have the option
to: (1) terminate this Agreement and have Range, on behalf of Seller, receive the Deposit as
liquidated damages, or (2) seek the specific performance of Buyer. If the Seller elects to have
Range receive the Deposit on behalf of Seller pursuant to this Section 3.2(a), the Parties shall
jointly instruct the Escrow Agent in writing pursuant to the terms of the Escrow Agreement to
release the Deposit to Range on behalf of Seller.

          (b) If this Agreement is terminated by the mutual written agreement of Buyer and Seller, or if
the Closing does not occur for any reason other than as set forth in Section 3.2(a), then Buyer
shall be entitled to the delivery of the Deposit, free of any claims by, through or under Seller or
any Affiliate thereof. Buyer and Seller shall thereupon have the rights and obligations set forth
in Section 14.2. If Buyer is entitled to receive the Deposit pursuant to this Section 3.2(b), the
Parties shall jointly instruct the Escrow Agent in writing pursuant to the terms of the Escrow
Agreement to release the Deposit to Buyer.

     3.3 Adjustments to Purchase Price. The Purchase Price shall be adjusted as follows, and the
resulting amount shall be herein called the “Adjusted Purchase Price”:

          (a) The Purchase Price shall be adjusted upward by the following amounts (without
duplication):

               (i) an amount equal to the value of all oil, including condensate attributable to the RTP
Assets in tanks (including inventory but excluding linefill) as of the Effective Time, the value to
be based upon the contract price in effect as of the Effective Time, less (A) amounts payable as
royalties, overriding royalties and other burdens upon, measured by or payable out of such
production and (B) severance Taxes deducted by the purchaser of such production;

               (ii) an amount equal to all Operating Expenses and all other costs and expenses paid by Seller
or its Affiliates that are attributable to the ownership or operation of the

21

 

Assets from and after the Effective Time up to Closing (whether paid before or after the
Effective Time), including (A) royalties or other burdens upon, measured by or payable out of
proceeds of production, (B) rentals and other lease maintenance payments and (C) Property Taxes, in
each case net of any sales, excise or similar Taxes in connection therewith reimbursed to Seller or
its Affiliates, as applicable, by any Third Party purchaser;

               (iii) the aggregate amount of any and all capital expenditures relating to those wells set
forth on Schedule 3.3(a)(iii) paid by Seller;

               (iv) an amount equal to the costs paid by Seller (if any) upon the liquidation of the Subject
Hedges pursuant to Section 6.8; and

               (v) any other amount provided for elsewhere in this Agreement or otherwise agreed upon by
Seller and Buyer.

          (b) The Purchase Price shall be adjusted downward by the following amounts (without
duplication):

               (i) an amount equal to all proceeds received by Seller or its Affiliates attributable to (A)
the ownership or operation of the Assets or (B) the Assumed Hedges (in each case) from and after
the Effective Time up to Closing, including the sale of Hydrocarbons produced from the RTP Assets
or allocable thereto, net of any sales, excise or similar Taxes in connection therewith not
reimbursed to Seller or its Affiliates, as applicable, by a Third Party purchaser;

               (ii) if Seller makes (or is deemed to have made) the election under Section 11.2(d)(i) with
respect to any uncured Title Defect, the Title Defect Amount with respect to such Title Defect;

               (iii) if Seller makes (or is deemed to have made) the election under Section 12.1(b)(i) with
respect to any uncured Environmental Defect, the Remediation Amount with respect to such
Environmental Defect;

               (iv) the Allocated Value of any Assets excluded from the transactions contemplated hereby
pursuant to Section 6.10, Section 11.2(d)(iii), Section 11.4 or Section 12.1(b)(iii);

               (v) the amount of all Property Taxes prorated to Seller in accordance with Section 15.2(b) but
paid or payable by Buyer;

               (vi) an amount equal to all proceeds from sales of Hydrocarbons relating to the RTP Assets and
payable to owners of Working Interests, royalties, overriding royalties and other similar interests
(in each case) that are held by RTP in suspense as of the Closing Date;

               (vii) an amount equal to the proceeds received by Seller (if any) from the liquidation of the
Subject Hedges received by Seller pursuant to Section 6.8;

22

 

               (viii) any amounts determined by the Parties pursuant to Section 6.6; and

               (ix) any other amount provided for elsewhere in this Agreement or otherwise agreed upon by
Seller and Buyer.

     3.4 Preliminary Settlement Statement. Not less than 5 Business Days prior to the Closing,
Seller shall prepare and submit to Buyer for review a draft settlement statement (the “Preliminary
Settlement Statement”) that shall set forth the Adjusted Purchase Price, reflecting each adjustment
made in accordance with this Agreement as of the date of preparation of such Preliminary Settlement
Statement and the itemized calculation and reasonable supporting documentation of the adjustments
used to determine such amount, together with the designation of Seller’s accounts for the wire
transfers of funds as set forth in Section 9.3(e). Within 2 Business Days of receipt of the
Preliminary Settlement Statement, Buyer will deliver to Seller a written report containing all
changes with the explanation therefor that Buyer proposes to be made to the Preliminary Settlement
Statement. The Preliminary Settlement Statement, as agreed upon by the Parties, will be used to
adjust the Purchase Price at Closing; provided that if the Parties do not agree upon an adjustment
set forth in the Preliminary Settlement Statement, then the amount of such adjustment used to
adjust the Purchase Price at Closing shall be that amount set forth in the draft Preliminary
Settlement Statement delivered by Seller to Buyer pursuant to this Section 3.4.

     3.5 Final Settlement Statement. On or before 120 days after the Closing, a final settlement
statement (the “Final Settlement Statement”) will be prepared by Seller based on actual income and
expenses during the period from and after the Effective Time until Closing and which takes into
account all final adjustments made to the Purchase Price and shows the resulting final Purchase
Price (the “Final Price”). The Final Settlement Statement shall set forth the actual proration of
the amounts required by this Agreement. As soon as practicable, and in any event within 30 days
after receipt of the Final Settlement Statement, Buyer shall return to Seller a written report
containing any proposed changes to the Final Settlement Statement and an explanation of any such
changes and the reasons therefor (the “Dispute Notice”). If the Final Price set forth in the Final
Settlement Statement is mutually agreed upon by Seller and Buyer, the Final Settlement Statement
and the Final Price, shall be final and binding on the Parties. Any difference in the Adjusted
Purchase Price as paid at Closing pursuant to the Preliminary Settlement Statement and the Final
Price shall be paid by the owing Party within 10 days of such agreement to the owed Party. All
amounts paid pursuant to this Section 3.5 shall be delivered in United States currency by wire
transfer of immediately available funds to the account specified in writing by the relevant Party.

     3.6 Disputes. If Seller and Buyer are unable to resolve the matters addressed in the Dispute
Notice, each of Buyer and Seller shall within 14 Business Days after the delivery of such Dispute
Notice, summarize its position with regard to such dispute in a written document of twenty pages or
less and submit such summaries to the Houston, Texas office of Deloitte & Touche LLP or such other
Person as the Parties may mutually select (the “Accounting Arbitrator”), together with the Dispute
Notice, the Final Settlement Statement and any other documentation such Party may desire to submit.
Within 20 Business Days after receiving the Parties’ respective submissions, the Accounting
Arbitrator shall render a decision choosing either Seller’s position or Buyer’s position with
respect to each matter addressed in any Dispute Notice,

23

 

based on the materials described above. Any decision rendered by the Accounting Arbitrator
pursuant hereto shall be final, conclusive and binding on Seller and Buyer and will be enforceable
against any of the Parties in any court of competent jurisdiction. The costs of such Accounting
Arbitrators shall be borne one-half by Buyer and one-half by Seller. In the event that Deloitte &
Touche LLP declines to serve as the Accounting Arbitrator and the Parties are unable to mutually
agree upon its replacement within 10 days following the date upon which Deloitte & Touche LLP
provides notice that it will not serve as Accounting Arbitrator, then each Party will nominate a
candidate to be the Accounting Arbitrator, and such candidates so nominated by the Parties shall
together determine the Accounting Arbitrator.

     3.7 Allocation of Purchase Price / Allocated Values. Buyer and Seller agree that the
unadjusted Purchase Price shall be allocated among the Assets and the Assumed Hedges as set forth
in Exhibit A-1, Exhibit A-2, Exhibit B-2 or Schedule 1.1, as applicable. The “Allocated Value” for
any Asset equals the portion of the unadjusted Purchase Price allocated to such Asset in Exhibit
A-1, Exhibit A-2, Exhibit B-2 or Schedule 1.1, as applicable, and such Allocated Value shall be
used in calculating adjustments to the Purchase Price as provided herein. Buyer and Seller also
agree (a) that the Allocated Values, as adjusted, shall be used by Seller and Buyer as the basis
for reporting asset values and other items for purposes of Section 3.8, and (b) that neither they
nor their Affiliates will take positions inconsistent with such Allocated Values in notices to
Governmental Authorities, in audit or other proceedings with respect to Taxes, in notices to
Preferential Purchase Right holders or in other documents or notices relating to the transactions
contemplated by this Agreement.

     3.8 
    Allocation of Consideration for Tax Purposes.

          (a) RTP and Buyer agree that the portion of the Purchase Price, as adjusted, attributable to
the RTP Assets and the Assumed Obligations with respect to the RTP Assets and other amounts treated
for Tax purposes as consideration for a sale transaction (to the extent known at such time)
(collectively, the “Allocable RTP Amount”) shall be allocated among the various RTP Assets for Tax
purposes. The initial draft of such allocations shall be prepared by RTP in a manner consistent
with the related Allocated Values set forth in Exhibit A-1, Exhibit A-2 and Exhibit B-2 and shall
be provided to Buyer no later than 120 days after the Closing. RTP and Buyer shall then cooperate
to prepare a final schedule of the Allocable RTP Amount among the RTP Assets, which shall also be
materially consistent with the Allocated Values (as adjusted, the “RTP Allocation Schedule”). The
RTP Allocation Schedule shall be updated to reflect any adjustments to the Allocable RTP Amount.
The allocation of the Allocable RTP Amount shall be reflected on a completed Internal Revenue
Service Form 8594 (Asset Acquisition Statement under Section 1060), which Form will be timely filed
separately by RTP and Buyer with the Internal Revenue Service pursuant to the requirements of
Section 1060(b) of the Code. RTP and Buyer agree not to take any position inconsistent with the
allocations set forth in the RTP Allocation Schedule unless required by applicable Law or with the
consent of the other Parties. The Parties further agree that the allocations set forth on the RTP
Allocation Schedule will represent reasonable estimates of the fair market values of the RTP Assets
described therein.

          (b) EAOC and Buyer agree that the portion of the Purchase Price, as adjusted, attributable to
the EAOC Assets and the Assumed Obligations with respect to the EAOC Assets and other amounts
treated for Tax purposes as consideration for a sale transaction (to the extent

24

 

known at such time) (the “Allocable EAOC Amount”) shall be allocated among the various EAOC
Assets for Tax purposes. The initial draft of such allocations shall be prepared by EAOC in a
manner consistent with the related Allocated Values of the EAOC Assets (which the Parties agree is
zero Dollars) and shall be provided to Buyer no later than 120 days after the Closing. EAOC and
Buyer shall then cooperate to prepare a final schedule of the Allocable EAOC Amount among the EAOC
Assets, which shall also be materially consistent with the Allocated Values (as adjusted, the “EAOC
Allocation Schedule”). The EAOC Allocation Schedule shall be updated to reflect any adjustments to
the Allocable EAOC Amount. The allocation of the Allocable EAOC Amount shall be reflected on a
completed Internal Revenue Service Form 8594 (Asset Acquisition Statement under Section 1060),
which Form will be timely filed separately by EAOC and Buyer with the Internal Revenue Service
pursuant to the requirements of Section 1060(b) of the Code. EAOC and Buyer agree not to take any
position inconsistent with the allocations set forth in the EAOC Allocation Schedule unless
required by applicable Law or with the consent of the other Parties. The Parties further agree
that the allocations set forth on the EAOC Allocation Schedule will represent reasonable estimates
of the fair market values of the EAOC Assets described therein.

          (c) Range and Buyer agree that the portion of the Purchase Price, as adjusted, attributable to
the Assumed Hedges and the Assumed Obligations with respect to the Assumed Hedges novated to Buyer
pursuant to Section 6.8 and other amounts treated for Tax purposes as consideration for a sale
transaction (to the extent known at such time) (collectively, the “Allocable Range Amount”) shall
be equal to the Allocated Values set forth for each such Assumed Hedge on Schedule 1.1 (the “Range
Allocation Schedule”). The Range Allocation Schedule shall be updated to reflect any adjustments
to the Allocable Range Amount. The allocation of the Allocable Range Amount shall be reflected on
a completed Internal Revenue Service Form 8594 (Asset Acquisition Statement under Section 1060),
which Form will be timely filed separately by Range and Buyer with the Internal Revenue Service
pursuant to the requirements of Section 1060(b) of the Code. Range and Buyer agree not to take any
position inconsistent with the allocations set forth in the Range Allocation Schedule unless
required by applicable Law or with the consent of the other Parties. The Parties further agree
that the allocations set forth on the Range Allocation Schedule will represent reasonable estimates
of the fair market values of the Assumed Hedges described therein.

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

     Seller represents and warrants to Buyer the following:

     4.1 Organization, Existence and Qualification.

          (a) RTP is a limited liability company duly formed and validly existing under the Laws of the
State of Delaware. RTP has all requisite power and authority to own and operate its property
(including its interests in the Assets) and to carry on its business as now conducted. RTP is duly
licensed or qualified to do business as a foreign limited liability company in all jurisdictions in
which it carries on business or owns assets and such qualification is required by Law, except where
the failure to be so qualified would not have a Material Adverse Effect.

25

 

          (b) Range is a corporation duly formed and validly existing under the Laws of the State of
Delaware. Range has all requisite corporate power and authority to own and operate its property
and to carry on its business as now conducted. Range is duly licensed or qualified to do business
as a foreign corporation in all jurisdictions in which it carries on business or owns assets and
such qualification is required by Law, except where the failure to be so qualified would not have a
material adverse effect on the ability of Range to perform its obligations contemplated by this
Agreement.

          (c) EAOC is a limited liability company duly formed and validly existing under the Laws of the
State of Delaware. EAOC has all requisite power and authority to own and operate its property
(including its interests in the EAOC Assets) and to carry on its business as now conducted. EAOC
is duly licensed or qualified to do business as a foreign limited liability company in all
jurisdictions in which it carries on business or owns assets and such qualification is required by
Law, except where the failure to be so qualified would not have a Material Adverse Effect.

     4.2 Authority, Approval and Enforceability.

          (a) RTP has full power and authority to enter into and perform this Agreement and the
Transaction Documents to which it is a party and the transactions contemplated herein and therein.
The execution, delivery and performance by RTP of this Agreement have been duly and validly
authorized and approved by all necessary limited liability company action on the part of RTP. This
Agreement is, and the Transaction Documents to which RTP is a party when executed and delivered by
RTP will be, the valid and binding obligation of RTP and enforceable against RTP in accordance with
their respective terms, subject to the effects of bankruptcy, insolvency, reorganization,
moratorium and similar Laws, as well as to principles of equity (regardless of whether such
enforceability is considered in a proceeding in equity or at Law).

          (b) Range has full power and authority to enter into and perform this Agreement and the
transactions contemplated herein. The execution, delivery and performance by Range of this
Agreement have been duly and validly authorized and approved by all necessary corporation action on
the part of Range. This Agreement is the valid and binding obligation of Range and enforceable
against Range in accordance with its terms, subject to the effects of bankruptcy, insolvency,
reorganization, moratorium and similar Laws, as well as to principles of equity (regardless of
whether such enforceability is considered in a proceeding in equity or at Law).

          (c) EAOC has full power and authority to enter into and perform this Agreement and the
transactions contemplated herein. The execution, delivery and performance by EAOC of this
Agreement have been duly and validly authorized and approved by all necessary limited liability
company action on the part of EAOC. This Agreement is the valid and binding obligation of EAOC and
enforceable against EAOC in accordance with its terms, subject to the effects of bankruptcy,
insolvency, reorganization, moratorium and similar Laws, as well as to principles of equity
(regardless of whether such enforceability is considered in a proceeding in equity or at Law).

26

 

     4.3 No Conflicts. Assuming the receipt of all consents and approvals from Third Parties in
connection with the transactions contemplated hereby and the waiver of, or compliance with, all
Preferential Purchase Rights applicable to the transactions contemplated hereby:

          (a) the execution, delivery and performance by RTP of this Agreement and the consummation of
the transactions contemplated herein will not (i) conflict with or result in a breach of any
provisions of the limited liability company agreement or other governing documents of RTP, (ii)
result in a default or the creation of any Encumbrance or give rise to any right of termination,
cancellation or acceleration under any of the terms, conditions or provisions of any Lease,
Applicable Contract, note, bond, mortgage, indenture, license or other material agreement to which
RTP is a party or by which RTP or the RTP Assets may be bound or (iii) violate any Law applicable
to RTP or any of the RTP Assets, except in the case of clauses (ii) and (iii) where such default,
Encumbrance, termination, cancellation, acceleration or violation would not reasonably be expected
to have a Material Adverse Effect;

          (b) the execution, delivery and performance by Range of this Agreement and the performance of
its obligations contemplated herein will not (i) conflict with or result in a breach of any
provisions of the organizational or other governing documents of Range, (ii) result in a default or
the creation of any Encumbrance or give rise to any right of termination, cancellation or
acceleration under any of the terms, conditions or provisions of any note, bond, mortgage,
indenture, license or other agreement to which Range is a party or by which Range may be bound or
(iii) violate any Law applicable to Range, except in the case of clauses (ii) and (iii) where such
default, Encumbrance, termination, cancellation, acceleration or violation would not reasonably be
expected to have a Material Adverse Effect; and

          (c) the execution, delivery and performance by EAOC of this Agreement and the consummation of
the transactions contemplated herein will not (i) conflict with or result in a breach of any
provisions of the limited liability company agreement or other governing documents of EAOC, (ii)
result in a default or the creation of any Encumbrance or give rise to any right of termination,
cancellation or acceleration under any of the terms, conditions or provisions of any Applicable
Contract, note, bond, mortgage, indenture, license or other material agreement to which EAOC is a
party or by which EAOC or the EAOC Assets may be bound or (iii) violate any Law applicable to EAOC
or any of the EAOC Assets, except in the case of clauses (ii) and (iii) where such default,
Encumbrance, termination, cancellation, acceleration or violation would not reasonably be expected
to have a Material Adverse Effect

     4.4 Consents. Except (a) for compliance with the HSR Act, (b) as set forth in Schedule 4.4,
(c) for Customary Post-Closing Consents, (d) under Contracts that are terminable upon 60 days or
less notice without payment of any fee, and (e) for Preferential Purchase Rights, there is no
restriction or prohibition on assignment, including requirements for consents from Third Parties to
any assignment (in each case) that Seller is required to obtain in connection with the transfer of
the Assets by Seller to Buyer or the consummation of the transactions contemplated by this
Agreement by Seller.

     4.5 Bankruptcy. There are no bankruptcy or receivership proceedings pending, being
contemplated by or, to Seller’s Knowledge, threatened in writing against Seller or any Affiliate of
Seller, including EAOC, or the Assets.

27

 

     4.6 Foreign Person. RTP and EAOC are each disregarded entities as defined in Treasury
Regulation §1.1445-2(b)(2)(iii). RTP is wholly owned by Range Production Company, a Delaware
corporation (“RPC”) and EAOC is wholly owned by Range. Neither RPC nor Range is a “foreign person”
within the meaning of Section 1445 of the Code.

     4.7 Litigation. Except as set forth in Schedule 4.7, there is no suit, action or litigation
by any Person by or before any Governmental Authority, and no arbitration proceedings, (in each
case) pending, or to Seller’s Knowledge, threatened in writing, against Seller with respect to the
Assets.

     4.8 Material Contracts.

          (a) Schedule 1.1 and Schedule 4.8 set forth all Assumed Hedges and Applicable Contracts of the
type described below (the Contracts contained on such Schedules, collectively, the “Material
Contracts”):

               (i) any Applicable Contract that can reasonably be expected to result in aggregate payments by
RTP, EAOC and/or RPC as operator of the RTP Assets of more than $250,000 during the current or any
subsequent fiscal year (based solely on the terms thereof and current volumes, without regard to
any expected increase in volumes or revenues);

               (ii) any Applicable Contract that can reasonably be expected to result in aggregate revenues
to RTP, EAOC and/or RPC as operator of the RTP Assets of more than $250,000 during the current or
any subsequent fiscal year (based solely on the terms thereof and current volumes, without regard
to any expected increase in volumes or revenues);

               (iii) any Hydrocarbon purchase and sale, transportation, processing or similar Applicable
Contract that is not terminable without penalty upon 60 days or less notice;

               (iv) any indenture, mortgage, loan, credit or sale-leaseback or similar Applicable Contract
that will be binding on Buyer after Closing;

               (v) any Hedge Contract that will be binding on Buyer after Closing;

               (vi) any Applicable Contract that constitutes a lease under which Seller is the lessor or the
lessee of real or Personal Property which lease (A) cannot be terminated by Seller without penalty
upon 60 days or less notice and (B) involves an annual base rental of more than $250,000;

               (vii) any farmout agreement, participation agreement, exploration agreement, development
agreement, joint operating agreement, unit agreement or similar Applicable Contract;

               (viii) any Applicable Contract between Seller and any Affiliate of Seller that will not be
terminated prior to Closing;

28

 

               (ix) all Applicable Contracts that contain or constitute existing area of mutual interest
agreements and agreements that include non-competition restrictions or other similar restrictions
on doing business; and

               (x) any Applicable Contract to which RTP is a party for the providing, use, processing or
analysis of seismic or geophysical data relating to the RTP Assets, to the extent that such
Applicable Contract and the geophysical and other seismic and related technical data and
information obtained in connection therewith is transferable without payment of a fee or other
penalty to any Third Party.

          (b) Seller has furnished or made available to Buyer complete and accurate copies of the
Material Contracts as in effect on the date hereof. Except as set forth in Schedule 1.1 or
Schedule 4.8, as applicable (i) there exists no default under any Material Contract by RTP or EAOC
or, to Seller’s Knowledge, by any other Person that is a party to such Contract (in each case)
except for such matters that, individually or in the aggregate, would not reasonably be expected to
result in an economic loss to Seller of an amount greater than $250,000 and (ii) there are no
current notices received by any Seller of the exercise of any premature termination or price
redetermination under any Material Contract.

     4.9 No Violation of Laws. To Seller’s Knowledge, except as set forth in Schedule 4.9, as of
the date of this Agreement neither RTP nor EAOC is in material violation of any applicable Laws
with respect to its ownership and operation of the Assets. This Section 4.9 does not include any
matters with respect to Environmental Laws, such matters being addressed exclusively in Section
4.14.

     4.10 Preferential Rights. Except as set forth in Schedule 4.10, there are no Preferential
Purchase Rights that are applicable to the transfer of the Assets by Seller to Buyer.

     4.11 Royalties; Expenses; Etc. Except for such items that are being held in suspense for
which the Purchase Price is adjusted pursuant to Section 3.3(b)(vi) and except as set forth on
Schedule 4.11, RTP has paid all royalties, overriding royalties and other burdens on production due
by RTP with respect to the RTP Assets, or if not paid, is contesting such royalties and other
burdens in good faith in the normal course of business. Subject to the foregoing, to the Knowledge
of Seller, no material expenses (including bills for labor, materials and supplies used or
furnished for use in connection with the Assets, royalties, overriding royalties and other burdens
on production and amounts payable to co-owners of the Assets) are owed and delinquent in payment by
any Seller that relate to the ownership or operation of the Assets.

     4.12 Imbalances. To Seller’s Knowledge, there are no Imbalances associated with the Assets as
of the Effective Time.

     4.13 Current Commitments. Schedule 4.13 sets forth, as of the date of this Agreement, all
authorities for expenditures (“AFEs”) relating to the Assets to drill or rework Subject Wells or
any other well or for other capital expenditures relating to any Asset, in each case for which all
of the activities anticipated in such AFEs or commitments have not been completed by the date of
this Agreement or which will be binding on Seller on or after the Effective Time or Buyer on or
after the Closing Date.

29

 

     4.14 Environmental.

          (a) Except as set forth in Schedule 4.14, with respect to the Assets, neither RTP nor EAOC has
entered into, or is subject to, any agreements, consents, orders, decrees or judgments of any
Governmental Authority, that are in existence as of the date of this Agreement, that are based on
any Environmental Laws and that relate to the current or future use of any of the Assets.

          (b) Except as set forth in Schedule 4.14, as of the date of this Agreement, neither RTP nor
EAOC has received written notice from any Person of any release or disposal of any Hazardous
Substance concerning any land, facility, asset or property included in the Assets that would
reasonably be expected to: (i) interfere with or prevent compliance by RTP or EAOC with any
Environmental Law or the terms of any license or permit issued pursuant thereto; or (ii) gives rise
to or results in any common Law or other liability of RTP or EAOC to any Person which, in the case
of either clause (i) or (ii) hereof, would have a Material Adverse Effect.

     4.15 Property Taxes. Except as disclosed in Schedule 4.15:

          (a) all Property Taxes that have become due and payable have been properly paid;

          (b) all Tax Returns with respect to Property Taxes that are required to be filed have been
duly and timely filed;

          (c) there are no Encumbrances for Taxes (including any interest, fine, penalty or additions to
Tax imposed by a Taxing Authority in connection with such Taxes) on the Assets, other than
statutory liens for current Taxes not yet due;

          (d) Neither RTP nor EAOC has received notice of any pending claim (which remains outstanding)
from any applicable Taxing Authority for assessment of Property Taxes and, to Seller’s Knowledge,
no such claim has been made or threatened; and

          (e) no audit, administrative, judicial or other proceeding with respect to Property Taxes has
been commenced or is presently pending.

     4.16 Tax Partnerships. Except as set forth in Schedule 4.16, none of the Assets is held by or
is subject to any contractual arrangement between RTP or EAOC, on the one hand, and any other
Person, on the other hand, whether owning undivided interests therein or otherwise, that is
classified as a partnership for United States federal Tax purposes (a “Tax Partnership”) and no
transfer of any part of the Assets pursuant to this Agreement will be treated as a transfer of an
interest or interests in any such partnership, and, to the extent that any of the Assets are deemed
by agreement or applicable Law to be held by a partnership for federal Tax purposes, except as set
forth in Schedule 4.16, each such partnership has or shall have in effect an election under Section
754 of the Code that will apply with respect to the acquisition by Buyer of the Assets.

     4.17 Brokers’ Fees. Seller has incurred no liability, contingent or otherwise, for brokers’
or finders’ fees relating to the transactions contemplated by this Agreement for which Buyer or any
Affiliate of Buyer shall have any responsibility.

30

 

     4.18 Suspense Funds. Schedule 4.18 lists (a) all funds held in suspense by RTP as of the date
hereof that are attributable to the RTP Assets, (b) a description of the source of such funds and
the reason they are being held in suspense, and (c) if known, the name or names of the Persons
claiming such funds or to whom such funds are owed.

     4.19 Wells. Except as described on Schedule 4.19: To Seller’s Knowledge,

          (a) all Wells have been drilled and completed within the limits permitted by all applicable
Leases, Applicable Contracts and pooling or unit agreements; and

          (b) there is no Well located on lands burdened by the Leases or on lands pooled or unitized
therewith that, as of the date hereof, is required under applicable Laws to be plugged or
abandoned.

     4.20 No Other Barnett Shale Area Leases. As of the date of this Agreement, neither Seller nor
any of its Affiliates own interests in any (a) oil and gas lease, overriding royalty interest, net
profits interest, non-participating royalty interest, royalty interest or similar interest in oil
and gas in place or other mineral interest or (b) Rights-of-Way, in each case, in the Barnett Shale
Area, other than the Assets and the Excluded Assets.

     4.21 Applicable Contracts Subject to Confidentiality Restrictions. To Seller’s Knowledge,
there are no Applicable Contracts to which Buyer will not have access prior to Closing as a result
of confidentiality restrictions burdening such Applicable Contracts.

     4.22 Regulatory Matters. None of RTP, Range or EAOC (a) is a “natural gas company” engaged in
the transportation of natural gas in interstate commerce under the Natural Gas Act of 1938, as
amended, and has operated, or provided services, using any of the Assets in a manner that subjects
it, any Third Party operator of the Assets or any future owner of the Assets to the jurisdiction
of, or regulation by, the Federal Energy Regulatory Commission (i) as a natural gas company under
the Natural Gas Act of 1938 (other than pursuant to a certificate of limited jurisdiction as
described below), or (ii) as a common carrier pipeline under the Interstate Commerce Act; and (b)
holds any general or limited jurisdiction certificate of public convenience and necessity issued by
the Federal Energy Regulatory Commission other than a blanket sale for resale certificate issued by
operation of Law or a blanket certificate issued to permit participation in capacity release
transactions. EAOC is a gas utility subject to the jurisdiction of the Texas Railroad Commission.
RTP and Range are not gas utilities subject to the jurisdiction of the Texas Railroad Commission
and neither RTP nor Range acquired any of the RTP Assets through the use of eminent domain or
condemnation.

ARTICLE V

BUYER’S REPRESENTATIONS AND WARRANTIES

     Buyer represents and warrants to Seller the following:

     5.1 Organization, Existence and Qualification. Buyer is a limited partnership duly formed and
validly existing under the Laws of the jurisdiction of its formation and Buyer has all requisite
power and authority to own and operate its property and to carry on its business as now conducted.
Buyer is duly licensed or qualified to do business as a foreign limited partnership in

31

 

all jurisdictions in which it carries on business or owns assets and such qualification is
required by Law except where the failure to be so qualified would not have a material adverse
effect upon the ability of Buyer to consummate the transactions contemplated by this Agreement.
Buyer is duly licensed or qualified to do business in Texas.

     5.2 Authority, Approval and Enforceability. Buyer has full power and authority to enter into
and perform this Agreement and the Transaction Documents to which it is a party and the
transactions contemplated herein and therein. The execution, delivery and performance by Buyer of
this Agreement have been duly and validly authorized and approved by all necessary partnership
action on the part of Buyer. This Agreement is, and the Transaction Documents to which Buyer is a
party when executed and delivered by Buyer will be, the valid and binding obligation of Buyer and
enforceable against Buyer in accordance with their respective terms, subject to the effects of
bankruptcy, insolvency, reorganization, moratorium and similar Laws, as well as to principles of
equity (regardless of whether such enforceability is considered in a proceeding in equity or at
Law).

     5.3 No Conflicts. Assuming receipt of all consents and approvals from Third Parties in
connection with the transactions contemplated by this Agreement, the execution, delivery and
performance by Buyer of this Agreement and the consummation of the transactions contemplated herein
will not (a) conflict with or result in a breach of any provisions of the organizational or other
governing documents of Buyer, (b) result in a default or the creation of any Encumbrance or give
rise to any right of termination, cancellation or acceleration under any of the terms, conditions
or provisions of any note, bond, mortgage, indenture, license or other agreement to which Buyer is
a party or by which Buyer or any of its property may be bound or (c) violate any Law applicable to
Buyer or any of its property, except in the case of clauses (b) and (c) where such default,
Encumbrance, termination, cancellation, acceleration or violation would not have a material adverse
effect upon the ability of Buyer to consummate the transactions contemplated by this Agreement or
perform its obligations hereunder.

     5.4 Consents. Except for compliance with the HSR Act, there are no consents or other
restrictions on assignment, including requirements for consents from Third Parties to any
assignment (in each case) that Buyer is required to obtain in connection with the transfer of the
Assets from Seller to Buyer or the consummation of the transactions contemplated by this Agreement
by Buyer.

     5.5 Bankruptcy. There are no bankruptcy, reorganization or receivership proceedings pending,
being contemplated by or, to Buyer’s knowledge, threatened in writing against Buyer or any
Affiliates of Buyer.

     5.6 Litigation. There is no suit, action or litigation by any Person by or before any
Governmental Authority, and no arbitration proceedings, (in each case) pending, or to Buyer’s
knowledge, threatened in writing, against Buyer, that would have a material adverse effect upon the
ability of Buyer to consummate the transactions contemplated by this Agreement or perform its
obligations hereunder.

     5.7 Financing.

32

 

          (a) As of the date of this Agreement, Buyer has in place financing and equity commitments in
the forms provided to Buyer, which commitments are sufficient to pay the Purchase Price, consummate
the transactions contemplated by this Agreement and perform its obligations under this Agreement
and the Transaction Documents.

          (b) Immediately prior to and at the Closing, Buyer will have sufficient cash in immediately
available funds with which to pay the Purchase Price, consummate the transactions contemplated by
this Agreement and perform its obligations under this Agreement and the Transaction Documents.

     5.8 Regulatory. No later than 5 days prior to the Closing and continually thereafter (a)
Buyer, or Buyer’s designated Affiliate that will take title to or operate the Assets, shall be
qualified to own and assume operatorship of oil, gas and mineral leases in all jurisdictions where
the Assets are located, and the consummation of the transactions contemplated by this Agreement
will not cause Buyer to be disqualified as such an owner or operator, and (b) Buyer, or Buyer’s
designated wholly owned Affiliate that will be a party to the EAOC Assignment, shall be registered
and qualified with the Texas Railroad Commission as a gas utility. To the extent required by any
applicable Laws, Buyer shall, as of the Closing Date, (i) hold all lease bonds and any other surety
or similar bonds as may be required by, and in accordance with, all applicable Laws governing the
ownership and operation of the Assets and (ii) have filed any and all required reports necessary
for such ownership and operation with all Governmental Authorities having jurisdiction over such
ownership and operation.

     5.9 Independent Evaluation. Buyer is sophisticated in the evaluation, purchase, ownership and
operation of oil and gas properties and related facilities. In making its decision to enter into
this Agreement and to consummate the transactions contemplated hereby, Buyer has (a) relied on the
express terms of this Agreement (including all representations and warranties of Seller set forth
herein) and in the other Transaction Documents and (b) relied on its own independent investigation
and evaluation of the Assets and the advice of its own legal, Tax, economic, environmental,
engineering, geological and geophysical advisors and not on any comments, statements, projections
or other material made or given by any representative, consultant or advisor of Seller. Buyer
acknowledges and affirms that on or prior to Closing, Buyer will have completed its independent
investigation, verification, analysis, and evaluation of the Assets and made all such reviews and
inspections of the Assets as it has deemed necessary or appropriate to consummate the transaction
contemplated hereunder; provided, however, no such investigation, verification, analysis or
evaluation (or absence thereof) shall reduce, modify, release or waive any of Seller’s obligations
or Liabilities hereunder or under any of the other Transaction Documents.

     5.10 Brokers’ Fees. Buyer has incurred no liability, contingent or otherwise, for brokers’ or
finders’ fees relating to the transactions contemplated by this Agreement for which Seller or
Seller’s Affiliates shall have any responsibility.

     5.11 Accredited Investor. Buyer is an “accredited investor,” as such term is defined in
Regulation D of the Securities Act of 1933, as amended, and will acquire the Assets for its own
account and not with a view to a sale or distribution thereof in violation of the Securities Act of

33

 

1933, as amended, and the rules and regulations thereunder, any applicable state blue sky Laws
or any other applicable securities Laws.

ARTICLE VI

CERTAIN AGREEMENTS

     6.1 Conduct of Business.

          (a) Except (x) as set forth in Schedule 6.1, (y) for the operations covered by the AFEs and
other capital commitments described in Schedule 4.13, and (z) as expressly contemplated by this
Agreement or as expressly consented to in writing by Buyer (which consent shall not be unreasonably
delayed, withheld or conditioned), Seller shall, and shall cause each of its Affiliates to, from
and after the date hereof until the Closing:

               (i) subject to (A) Seller’s right to comply with the terms of the Leases, Applicable
Contracts, applicable Laws and requirements of Governmental Authorities and (B) interruptions
resulting from force majeure, mechanical breakdown and planned maintenance, operate, or cause to be
operated, the Assets in the usual, regular and ordinary manner consistent with past practice as if
Seller were going to continue to own the Assets after the Closing Date and without regard to the
existence of this Agreement;

               (ii) maintain, or cause to be maintained, the books of account and Records relating to the
Assets in the usual, regular and ordinary manner and in accordance with the usual accounting
practices of each such Person;

               (iii) not terminate (unless the term thereof expires pursuant to the provisions existing
therein), materially amend, extend or surrender any rights under any Lease or Right-of-Way (unless
such Lease, Lease rights or Right-of-Way are replaced with rights which Seller and Buyer reasonably
agree to be of at least equal value);

               (iv) not approve any individual authorization for expenditure or similar request under any
Applicable Contract (other than those required under the terms of any Applicable Contract or to
protect life, property or the environment) which would reasonably estimated to require expenditures
in excess of $250,000;

               (v) not cancel or terminate any insurance coverage currently held by Seller with respect to
the Assets or cause or to the extent within their reasonable control, permit any of the coverage
thereunder to lapse, unless simultaneously with such termination, cancellation or lapse,
replacement policies providing coverage equal to or greater than the coverage under the canceled,
terminated or lapsed policies for substantially similar premiums and on substantially similar terms
and conditions are in full force and effect; and

               (vi) subject to Section 6.10, maintain in full force and effect any material license, permit
and other approval from a Governmental Authority related to the Assets to the extent required to
operate in accordance with the standards set forth in Section 6.1(a)(i).

          (b) Except (x) as set forth in Schedule 6.1, (y) for the operations covered by the AFEs and
other capital commitments described in Schedule 4.13, and (z) as expressly

34

 

contemplated by this Agreement or as expressly consented to in writing by Buyer (which consent
shall not be unreasonably delayed, withheld or conditioned), Seller shall, from and after the date
hereof until the Closing:

               (i) not (A) enter into an Applicable Contract that, if entered into on or prior to the date of
this Agreement, would be required to be listed in a Schedule attached to this Agreement, or (B)
terminate (unless the term thereof expires pursuant to the provisions existing therein) or
materially amend the terms of any Material Contract, except (1) contracts terminable by Seller with
notice of 90 days or less without penalty or detriment and (2) the novation of the Assumed Hedges
to Buyer at the Closing;

               (ii) not transfer, sell, mortgage, pledge or dispose of any material portion of the Assets
other than the (A) sale and/or disposal of Hydrocarbons in the ordinary course of business and (B)
sales of equipment that is no longer necessary in the operation of the Assets or for which
replacement equipment has been obtained; and

               (iii) not commit to do any of the foregoing.

          (c) Without expanding any obligations which Seller may have to Buyer, it is expressly agreed
that Seller shall never have any liability to Buyer with respect to any breach or failure of
Section 6.1(a)(i), Section 6.1(a)(ii) or Section 6.1(a)(vi) greater than that which it might have
as the operator to a non-operator under the applicable operating agreement (or, in the absence of
such an agreement, under the AAPL 610 (1989 Revision) form Operating Agreement), IT BEING
RECOGNIZED THAT, UNDER SUCH AGREEMENTS AND SUCH FORM, THE OPERATOR IS NOT RESPONSIBLE FOR ITS OWN
NEGLIGENCE, AND HAS NO RESPONSIBILITY OTHER THAN FOR GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

          (d) Buyer acknowledges RTP owns undivided interests in certain of the properties comprising
the RTP Assets that it is not the operator thereof, and Buyer agrees that the acts or omissions of
the other Working Interest owners (including the operators) who are not RTP or any Affiliates of
RTP shall not constitute a breach of the provisions of this Section 6.1, nor shall any action
required by a vote of Working Interest owners constitute such a breach so long as RTP has voted its
interest in a manner that complies with the provisions of this Section 6.1.

     6.2 Successor Operator. While Buyer acknowledges that it desires to succeed RPC as operator
of those RTP Assets or portions thereof that RPC may presently operate, Buyer acknowledges and
agrees that Seller cannot and does not covenant or warrant that Buyer shall become successor
operator of the same since the RTP Assets or portions thereof may be subject to operating or other
agreements that control the appointment of a successor operator. Seller agrees, however, that as
to the RTP Assets that RPC operates, it shall use its commercially reasonable efforts to support
Buyer’s efforts to become successor operator (to the extent permitted under any applicable joint
operating agreement), effective as of the Closing (at Buyer’s sole cost and expense), and to
designate and/or appoint by assignment, to the extent legally possible and permitted under the
Applicable Contracts, Buyer as successor operator effective as of the Closing.

35

 

     6.3 HSR Act. If applicable, within 10 Business Days following the execution by Buyer and
Seller of this Agreement, Buyer and Seller will each prepare and simultaneously file with the DOJ
and the FTC the notification and report form required for the transactions contemplated by this
Agreement by the HSR Act and request early termination of the waiting period thereunder. Buyer and
Seller agree to respond promptly to any inquiries from the DOJ or the FTC concerning such filings
and to comply in all material respects with the filing requirements of the HSR Act. Buyer and
Seller shall cooperate with each other and, subject to the terms of the Confidentiality Agreement,
shall promptly furnish all information to the other Party that is necessary in connection with
Buyer’s and Seller’s compliance with the HSR Act. Buyer and Seller shall keep each other fully
advised with respect to any requests from or communications with the DOJ or FTC concerning such
filings and shall consult with each other with respect to all responses thereto. Each of Seller
and Buyer shall use its reasonable efforts to take all actions reasonably necessary and appropriate
in connection with any HSR Act filing to consummate the transactions consummated hereby; provided,
however, that in no event will the Parties be required to agree to any divestiture, transfer or
licensing of their properties, assets or businesses, or to the imposition of any limitation on the
ability of any of the foregoing to conduct their businesses or to own or exercise control of their
assets and properties. The filing fees associated with any such HSR Act filing shall be borne 1/2
by Seller and 1/2 by Buyer.

     6.4 Governmental Bonds. Buyer acknowledges that none of the bonds, letters of credit and
guarantees, if any, posted by Seller or its Affiliates with Governmental Authorities and relating
to the Assets are transferable to Buyer. On or before the Closing Date, Buyer shall obtain
replacements for those bonds, letters of credit and guarantees described on Schedule 6.4, to the
extent such replacements are necessary for Buyer’s ownership of the Assets. At Closing, Buyer
shall use commercially reasonable efforts to cause the cancellation of the bonds, letters of credit
and guarantees posted by Seller and/or its Affiliates with respect to the Assets. In addition, at
or prior to Closing, Buyer shall deliver to Seller evidence of the posting of bonds or other
security with all applicable Governmental Authorities meeting the requirements of such authorities
to own and, where appropriate, operate, the Assets.

     6.5 Record Retention. Buyer, for a period of 5 years following the Closing, will (a) retain
the Records, (b) provide Seller, its Affiliates and its and their officers, employees and
representatives with access to the Records (to the extent that Seller has not retained the original
or a copy) during normal business hours for review and copying at Seller’s expense, and (c) provide
Seller, its Affiliates and its and their officers, employees and representatives with access,
during normal business hours, to materials received or produced after the Closing relating to any
indemnity claim made under Section 13.2 for review and copying at Seller’s expense.

     6.6 Amendment of Schedules. Buyer agrees that, with respect to the representations and
warranties of Seller contained in this Agreement, Seller shall have the continuing right until the
Closing to add, supplement or amend the Schedules to its representations and warranties with
respect to any matter hereafter arising or discovered which, if existing or known at the date of
this Agreement or thereafter, would have been required to be set forth or described in such
Schedules. For all purposes of this Agreement, including for purposes of determining whether the
conditions set forth in Article VII have been fulfilled, the Schedules to Seller’s representations
and warranties contained in this Agreement shall be deemed to include only that information
contained therein on the date of this Agreement and shall be deemed to exclude all

36

 

information contained in any addition, supplement or amendment thereto; provided, however,
that if the Closing shall occur, then all matters disclosed pursuant to any such addition,
supplement or amendment at or prior to the Closing shall be waived and Buyer shall not be entitled
to make a claim with respect thereto pursuant to the terms of this Agreement or otherwise. Any
matter disclosed in connection with any supplement or amendment to Schedule 4.7, Schedule 4.8 in
connection with the representation set forth in Section 4.8(b), Schedule 4.9, Schedule 4.14 or any
Schedule in connection with any Fundamental Representation shall, in each case, be deemed to be
included in Schedule 13.1. If any additional Material Contract is disclosed in connection with any
supplement or amendment to Schedule 4.8 and the terms of such additional Material Contract would
result in an economic loss to Buyer of more than $250,000, then, the Purchase Price will be reduced
by an amount mutually agreed by the Parties equal to the net present value of such economic loss.

     6.7 Transition Services. From and after Closing, Seller will cause RPC to (a) operate those
Assets that RPC or EAOC, as applicable, currently operates and (b) provide to Buyer certain other
services relating to the Assets, in each case, pursuant to the terms of a transition services
agreement substantially in the form of Exhibit K (the “Transition Services Agreement”).

     6.8 Assumed Hedges and Novation Agreements. Buyer shall use its commercially reasonable
efforts to take, on or prior to the Closing, all steps necessary to effectuate the novation of the
Assumed Hedges to Buyer pursuant to the Novation Agreements (including entering into an ISDA Master
Agreement with each Assumed Hedge Counterparty). If any Assumed Hedge is not able to be novated to
Buyer at the Closing because the Assumed Hedge Counterparty thereto will not consent to entering
into the applicable Novation Agreement and/or related ISDA Master Agreement (any such Assumed
Hedge, a “Subject Hedge”), then (a) Seller and Buyer shall jointly negotiate with the Assumed Hedge
Counterparty of such Subject Hedge for an amount to be paid to or by Seller upon liquidation of
such Subject Hedge, (b) Seller shall cause the Subject Hedges to be liquidated as of the Closing
Date and (c) the Purchase Price will be reduced or increased as set forth in Section 3.3 in
connection with such liquidation; provided, however, Seller shall not liquidate any Subject Hedge
except to the extent Buyer consents in writing to the liquidation amount to be received or payable
by any Seller or any of their respective Affiliates in connection with any such liquidation, such
consent not to be unreasonably withheld, conditioned or delayed; provided further, however, that if
Buyer does not consent to the liquidation amount for any Subject Hedge as permitted pursuant to the
foregoing, then for each such Subject Hedge as to which Buyer did not so consent (i) Range shall
(A) remain a party to such Subject Hedge for the remaining term thereof, (B) maintain the Subject
Hedge in full force and effect in accordance with its terms (subject to Buyer’s compliance with the
remaining provisions of this Section 6.8) and (C) not modify or amend such Subject Hedge without
the prior consent of Buyer, (ii) within 3 Business Days of its receipt of Hedge Proceeds, Range
shall pay to Buyer (in same day funds) the full amount of such Hedge Proceeds, (iii) to the extent
that Range is required to make any payment under such Subject Hedge (without regard to any offset
or netting of amounts under any other Hedge Contract transaction with the Assumed Hedge
Counterparty that is a party to such Subject Hedge), then within 3 Business Days of receipt by
Buyer of notice from Range regarding such payment and the amount thereof, Buyer shall pay to Range
(in same day funds) the full amount of such payment and (iv) Range shall have the right to require
Buyer to provide adequate security to Range to support Buyer’s

37

 

obligations to make any payments under this Section 6.8 at any time on and after the date upon
which Range is required to make any payment under such Subject Hedge.

     6.9 Retained Assets & Retained Asset Call Option.

          (a) From and after the expiration of the term of the Transition Services Agreement, RTP shall
have the right to require Buyer to operate the Retained Assets on its behalf pursuant to a mutually
agreed upon contract operating agreement. RTP’s right contained in this Section 6.9(a) shall
expire on the 10th anniversary of the Closing (the “Retained Asset Cut-Off Date”).

          (b) Buyer may, from and after the Closing, by written notice to Seller, elect to have RTP
transfer the Retained Assets to Buyer (such right, the “Retained Asset Call Option”). Upon receipt
of such notice from Buyer and the payment of $10 by Buyer to RTP, RTP shall assign the Retained
Assets to Buyer, effective as of the Effective Time, within 10 days of such receipt and the Parties
shall deliver the Transaction Documents with respect to such Retained Assets that are set forth in
Section 9.3 to the extent applicable. Buyer’s right contained in this Section 6.9(b) shall expire
on the Retained Asset Cut-Off Date. For the avoidance of doubt, if and when the Retained Assets
are assigned to Buyer pursuant to this Section 6.9(b), the Retained Assets shall no longer
constitute “Excluded Assets” for any purpose under this Agreement and shall become a part of the
“RTP Assets” hereunder.

          (c) Seller shall promptly notify Buyer regarding any orders, judgments, hearings or other
material matters arising in connection with the Pending Action and the Parties shall cooperate with
each other to keep each other apprised of any further developments with respect to the Pending
Action or the Retained Assets. Until the Retained Assets Cutoff Date, without the prior written
consent of Buyer, (a) Seller shall comply with the covenants set forth in Section 6.1 with respect
to the Retained Assets and (b) Seller shall not propose, consent to or participate in the drilling
or reworking of any Well located upon the Retained Assets

          (d) This terms and provisions of Section 6.9 shall constitute a covenant running with the land
as to the Retained Assets and shall be binding on any successors or assigns of Seller in or to all
or any portion of the Retained Assets. Any successor or assigns as to all or any portion of the
Retained Assets shall agree and acknowledge in writing set forth in any instrument or agreement of
assignment, transfer or disposition of any Retained Assets that such assignment, transfer or
disposition shall be subject to this Section 6.9.

     6.10 Permit Issue Properties.

          (a) From and after execution of this Agreement, Seller shall use its reasonable efforts, at
Seller’s sole cost and expense, to obtain the Permit Amendment. In the event that Seller does not
obtain the Permit Amendment prior to the Closing, then (i) Seller shall retain the Permit
Properties, (ii) the Permit Properties shall be deemed to constitute “Excluded Assets”, (iii) the
Parties shall exclude the Permit Properties from the Assignments and (iv) the Purchase Price shall
be adjusted downward by an amount equal to the Allocated Value of the Permit Properties.

38

 

          (b) From and after the Closing up to November 1, 2011 (the “Permit Cut-off Date”), Seller
shall continue to use its reasonable efforts, at Seller’s sole cost and expense, to obtain the
Permit Amendment; provided that if Seller has not obtained the Permit Amendment by the Permit
Cut-Off Date, then, on or before the Alternate Transportation Date, RTP shall enter into a
transportation agreement with DFW Midstream Services LLC (“DFW”) to transport and compress the
Hydrocarbons produced from the Permit Properties and redeliver such Hydrocarbons on behalf of RTP
to Energy Transfer Company (“ETP”) at the ETF Chambers Road interconnect (the “Alternative
Transportation Agreement”). The price for the services to be provided by DFW under the Alternative
Transportation Agreement shall not exceed the amounts set forth in Schedule 6.10(c) and such
agreement shall contain such other terms and conditions as are approved by Buyer (which approval
shall not be unreasonably withheld, conditioned or delayed). From and after the Closing until the
assignment of the Permit Issue Properties to Buyer by RTP pursuant to Section 6.10(c) below, RTP
shall have the right to require Buyer to operate the Permit Issue Properties on its behalf pursuant
to a mutually agreed upon contract operating agreement.

          (c) Within the earlier of 10 days following the date that Seller obtains the Permit Amendment
or enters into the Alternative Transportation Agreement (i) RTP shall assign the Permit Properties
to Buyer, effective as of the Effective Time, (ii) the Parties shall deliver the Transaction
Documents with respect to such Permit Properties that are set forth in Section 9.3 to the extent
applicable, and (iii) Buyer shall pay to Range, on behalf of Seller, the Permit Property Amount as
the purchase price therefor. For the avoidance of doubt, upon the assignment of the Permit Issue
Properties are assigned to Buyer pursuant to this Section 6.10(c), the Permit Issue Properties
shall no longer constitute “Excluded Assets” for any purpose under this Agreement and shall become
a part of the “RTP Assets” hereunder.

          (d) The Parties shall cooperate with each other to keep each other apprised of any
developments with respect to the Permit Issue, the Permit Amendment, the Permit Properties and the
Alternative Transportation Agreement, if any. Following Closing and until the transfer of the
Permit Properties to Buyer by RTP pursuant to Section 6.10(c), Seller, absent the prior written
consent of Buyer, shall (a) comply with the covenants set forth in Section 6.1 with respect to the
Permit Properties and (b) not propose, consent to or participate in the drilling or reworking of
any Well located upon the Permit Properties.

ARTICLE VII

BUYER’S CONDITIONS TO CLOSING

     The obligations of Buyer to consummate the transactions provided for herein are subject, at
the option of Buyer, to the fulfillment by Seller or waiver by Buyer, on or prior to the Closing,
of each of the following conditions:

     7.1 Representations. Each of the representations and warranties of Seller set forth in
Article IV shall be true and correct in all respects on and as of the Closing Date, with the same
force and without giving effect to any qualifiers as to materiality, Material Adverse Effect or
material adverse effect as though such representations and warranties had been made or given on and
as of the Closing Date (other than representations and warranties that refer to a specified date,
which need only be true and correct on and as of such specified date), except for those

39

 

breaches, if any, of such representations and warranties that in the aggregate would not have
a Material Adverse Effect.

     7.2 Performance. Seller shall have materially performed or complied with all obligations,
agreements and covenants contained in this Agreement as to which performance or compliance by
Seller is required prior to or at the Closing Date.

     7.3 No Legal Proceedings. No material suit, action or other proceeding by any Third Party
shall be pending before any Governmental Authority (a) seeking to restrain, prohibit, enjoin or
declare illegal, or (b) seeking substantial damages in connection with, the transactions
contemplated by this Agreement.

     7.4 Title Defects and Environmental Defects. The sum of (a) all Title Defect Amounts
determined under Section 11.2(d)(i) prior to the Closing, less the sum of all Title Benefit Amounts
determined under Section 11.2(b) prior to Closing, plus (b) all Remediation Amounts for
Environmental Defects determined under Article XII prior to the Closing, plus (c) the aggregate
amount the Purchase Price is reduced in accordance with Section 11.4, shall be less than 15% of the
Purchase Price.

     7.5 HSR Act. If applicable, (a) the waiting period under the HSR Act applicable to the
consummation of the transactions contemplated hereby shall have expired, (b) notice of early
termination shall have been received, or (c) a consent order issued (in form and substance
satisfactory to Seller) by or from applicable Governmental Authorities.

     7.6 Closing Deliverables. (a) Seller shall have delivered to Buyer the officer’s certificate
described in Section 9.3(j), and (b) Seller shall be ready, willing and able to deliver to Buyer at
the Closing the other documents and items required to be delivered by Seller under Section 9.3.

ARTICLE VIII

SELLER’S CONDITIONS TO CLOSING

     The obligations of Seller to consummate the transactions provided for herein are subject, at
the option of Seller, to the fulfillment by Buyer or waiver by Seller on or prior to the Closing of
each of the following conditions:

     8.1 Representations. Each of the representations and warranties of Buyer set forth in Article
V shall be true and correct in all material respects on and as of the Closing Date, with the same
force and effect as though such representations and warranties had been made or given on and as of
the Closing Date (other than representations and warranties that refer to a specified date, which
need only be true and correct on and as of such specified date).

     8.2 Performance. Buyer shall have materially performed or complied with all obligations,
agreements and covenants contained in this Agreement as to which performance or compliance by Buyer
is required prior to or at the Closing Date.

     8.3 No Legal Proceedings. No material suit, action or other proceeding by any Third Party
shall be pending before any Governmental Authority (a) seeking to restrain, prohibit or

40

 

declare illegal, or (b) seeking substantial damages in connection with, the transactions
contemplated by this Agreement.

     8.4 Title Defects and Environmental Defects. The sum of (a) all Title Defect Amounts
determined under Section 11.2(d)(i) prior to the Closing, less the sum of all Title Benefit Amounts
determined under Section 11.2(b) prior to Closing, plus (b) all Remediation Amounts for
Environmental Defects determined under Article XII prior to the Closing, plus (c) the aggregate
amount the Purchase Price is reduced in accordance with Section 11.4, shall be less than 15% of the
Purchase Price.

     8.5 HSR Act. If applicable, (a) the waiting period under the HSR Act applicable to the
consummation of the transactions contemplated hereby shall have expired, (b) notice of early
termination shall have been received, or (c) a consent order issued (in form and substance
satisfactory to Seller) by or from applicable Governmental Authorities.

     8.6 Replacement Bonds. Buyer shall have obtained, in the name of Buyer, replacements for
Seller’s and/or its Affiliates’ bonds, letters of credit and guarantees, and such other bonds,
letters of credit and guarantees to the extent required to be obtained by Closing by Section 6.4.

     8.7 Closing Deliverables. Buyer shall have delivered to Seller the officer’s certificate
described in Section 9.3(k) and Buyer shall be ready, willing and able to deliver to Seller at the
Closing the other documents and items required to be delivered by Buyer under Section 9.3.

ARTICLE IX

CLOSING

     9.1 Date of Closing. Subject to the conditions stated in this Agreement, the sale by Seller
and the purchase by Buyer of the Assets pursuant to this Agreement (the “Closing”) shall occur on
or before 2:00 p.m. (Central Time) on April 29, 2011, or such other date as Buyer and Seller may
agree upon in writing. The date scheduled for the Closing shall be the “Closing Date”.

     9.2 Place of Closing. The Closing shall be held at the offices of Vinson & Elkins LLP,
located at 1001 Fannin, Suite 2500, Houston, Texas 77002.

     9.3 Closing Obligations. At the Closing, the following documents shall be delivered and the
following events shall occur, the execution of each document and the occurrence of each event being
a condition precedent to the others and each being deemed to have occurred simultaneously with the
others:

          (a) RTP and Buyer shall execute, acknowledge and deliver the RTP Assignment, in sufficient
counterparts to facilitate recording in the applicable counties where the RTP Assets are located.

          (b) EAOC and Buyer’s designated wholly owned Affiliate shall execute and deliver the EAOC
Assignment, in sufficient counterparts to facilitate recording in the applicable counties where the
EAOC Assets are located.

41

 

          (c) RTP and Buyer shall execute and deliver assignments, on appropriate forms, of state and
other Leases of Governmental Authorities included in the Assets in sufficient counterparts to
facilitate filing with the applicable Governmental Authority.

          (d) Seller and Buyer shall execute and deliver the Preliminary Settlement Statement.

          (e) Buyer shall deliver to Range, on behalf of Seller, to the account designated in the
Preliminary Settlement Statement, by direct bank or wire transfer in same day funds, the Adjusted
Purchase Price (after giving effect to the Deposit).

          (f) RTP shall deliver, and Seller shall cause RPC to deliver, as applicable, letters in lieu
of transfer orders substantially in the form of Exhibit D directing all purchasers of production to
make payment to Buyer of proceeds attributable to production from the Assets from and after the
Effective Time, for delivery by Buyer to the purchasers of production.

          (g) RPC and Range shall each deliver an executed statement described in Treasury Regulation
§1.1445-2(b)(2) substantially in the form of Exhibit E-1 and Exhibit E-2, respectively, certifying
that it is not a foreign person within the meaning of the Code.

          (h) Range and Buyer shall execute and deliver a surface use agreement covering the land
covered by the Mitchell Ranch Lease substantially in the form of Exhibit F (the “Mitchell Ranch
Surface Use Agreement”).

          (i) Seller shall cause RPC to execute and deliver, and Buyer shall execute and deliver, the
Transition Services Agreement.

          (j) Seller shall execute and deliver an officer’s certificate, dated as of Closing and
substantially in the form of Exhibit G, certifying that the conditions set forth in Section 7.1 and
Section 7.2 have been fulfilled and, if applicable, any exceptions to such conditions that have
been waived by Buyer.

          (k) Buyer shall execute and deliver an officer’s certificate, dated as of Closing and
substantially in the form of Exhibit H, certifying that the conditions set forth in Section 8.1 and
Section 8.2 have been fulfilled and, if applicable, any exceptions to such conditions that have
been waived by Seller.

          (l) Seller shall cause RPC or EAOC, as applicable, to execute and deliver forms prescribed by
the applicable Governmental Authorities to transfer status of operatorship of those Assets which
RPC, EAOC or any of their respective Affiliates operates from RPC or EAOC (or any Affiliate
thereof), as applicable, to Buyer or Buyer’s designated Affiliate, including Form P-4 or Form T-4B,
as applicable, for the Railroad Commission of Texas.

          (m) RTP and Buyer shall execute and deliver the Special Warranty Deed in sufficient
counterparts to facilitate recording in the applicable counties where the Special Warranty Deed
Property is located.

42

 

          (n) Seller and Buyer shall execute and deliver to the Escrow Agent a joint instruction in
compliance with the terms of the Escrow Agreement directing the Escrow Agent to release the Deposit
to Range on behalf of Seller at Closing.

          (o) Subject to Section 6.8, Range and Buyer shall execute and deliver the Novation Agreements.

          (p) Seller and Buyer shall execute and deliver any other agreements, instruments and documents
which are required by other terms of this Agreement to be executed and/or delivered at the Closing.

     9.4 Records. In addition to the obligations set forth under Section 9.3 above, but
notwithstanding anything herein to the contrary, no later than 15 Business Days following the
expiration of the term of the Transition Services Agreement, Seller shall make available to Buyer
the Records for pickup from Seller’s offices during normal business hours.

ARTICLE X

ACCESS/DISCLAIMERS

     10.1 Access.

          (a) From and after the date hereof and up to and including the Closing Date (or earlier
termination of this Agreement) but subject to the other provisions of this Section 10.1 and
obtaining any required consents of Third Parties, including Third Party operators of the Assets
(which consents Seller shall use commercially reasonable efforts to obtain), Seller shall afford to
Buyer and its officers, employees, agents, accountants, attorneys, investment bankers and other
authorized representatives (“Buyer’s Representatives”) reasonable access, during normal business
hours, to (i) Seller’s and its Affiliates’ employees (following prior notice to David Poole or Chad
Stephens of Range), (ii) the Assets and (iii) all Records in Seller’s or any of its Affiliates’
possession, custody or control; provided that Seller is only required to use its commercially
reasonable efforts to cause any Third Party to provide access to any Records to which Seller may
have custody or control but which are not in Seller’s or its Affiliates’ possession. All
investigations and due diligence conducted by Buyer or any Buyer’s Representative shall be
conducted at Buyer’s sole cost, risk and expense and any conclusions made from any examination done
by Buyer or any Buyer’s Representative shall result from Buyer’s own independent review and
judgment.

          (b) Buyer shall be entitled to conduct a Phase I environmental property assessment with
respect to the Assets. Seller or its designee shall have the right to accompany Buyer and Buyer’s
Representatives whenever they are on site on the Assets and also to collect split test samples if
any are collected. Notwithstanding anything herein to the contrary, Buyer shall not have access
to, and shall not be permitted to conduct, any environmental due diligence (including any Phase I
environmental property assessments) with respect to any Assets where Seller does not have the
authority to grant access for such due diligence (provided, however, Seller shall use its
commercially reasonable efforts to obtain permission from any Third Party to allow Buyer and
Buyer’s Representatives such access).

43

 

          (c) Before conducting any sampling, boring, drilling or other invasive investigation
activities (“Invasive Activities”) on or with respect to any of the Assets, Buyer shall (i) furnish
Seller with a written description of the proposed scope of the Invasive Activities to be conducted,
including a description of the activities to be conducted, and a description of the approximate
location and expected timing of such activities and (ii) obtain the prior written consent of Seller
to undertake such Invasive Activities. If any of the proposed Invasive Activities may unreasonably
interfere with normal operation of the Assets, Seller may request an appropriate modification of
the proposed Invasive Activity. Any Invasive Activities shall be conducted by a reputable
environmental consulting or engineering firm, approved in advance by Seller (such approval not to
be unreasonably withheld or delayed) and, once approved, such environmental consulting or
engineering firm shall be deemed to be a “Buyer’s Representative”. Buyer shall obtain all permits
necessary to conduct any approved Invasive Activities from any applicable Governmental Authorities;
provided that, upon request, Seller shall provide Buyer with assistance (at no cost or liability to
Seller) as reasonably requested by Buyer that may be necessary to secure such permits. Seller
shall have the right, at its option, to split with Buyer any samples collected pursuant to approved
Invasive Activities.

          (d) Buyer shall coordinate its environmental property assessments and physical inspections of
the Assets with Seller and all Third Party operators to minimize any inconvenience to or
interruption of the conduct of business by Seller or such Third Party operators. Buyer shall abide
by Seller’s, and any Third Party operator’s, safety rules, regulations and operating policies while
conducting its due diligence evaluation of the Assets, including any environmental or other
inspection or assessment of the Assets. Buyer hereby defends, indemnifies and holds harmless each
of the operators of the Assets and the Seller Indemnified Parties from and against any and all
Liabilities arising out of, resulting from or relating to any field visit, environmental property
assessment, or other due diligence activity conducted by Buyer or any Buyer’s Representative with
respect to the Assets, EVEN IF SUCH LIABILITIES ARISE OUT OF OR RESULT FROM, SOLELY OR IN PART, THE
SOLE, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OR
VIOLATION OF LAW OF OR BY A MEMBER OF THE SELLER INDEMNIFIED PARTIES, EXCEPTING ONLY (I)
LIABILITIES ACTUALLY RESULTING ON THE ACCOUNT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF A
MEMBER OF THE SELLER INDEMNIFIED PARTIES AND (II) LIABILITIES THAT WERE (A) EXISTING PRIOR TO SUCH
INSPECTIONS OR (B) DISCOVERED BY (BUT NOT CAUSED IN CONNECTION WITH) BUYER’S ACCESS OR INSPECTION.

          (e) Buyer agrees to promptly provide Seller, but in no less than 5 days after Buyer’s or any
of Buyer’s Representative’s receipt or creation, copies of all final environmental reports and
environmental test results prepared by Buyer and/or any of Buyer’s Representatives which contain
environmental data collected or generated from Buyer’s environmental due diligence with respect to
the Assets. None of Buyer, any of Buyer’s Representatives or Seller shall be deemed by Seller’s
receipt of said documents, or otherwise, to have made any representation or warranty, expressed,
implied or statutory, as to the condition of the Assets or to the accuracy of said documents or the
information contained therein.

44

 

          (f) Upon completion of Buyer’s due diligence, Buyer shall at its sole cost and expense and
without any cost or expense to Seller or its Affiliates, (i) repair all damage done to the Assets
in connection with Buyer’s due diligence, (ii) restore the Assets to at least the approximate same
or better condition than they were prior to commencement of Buyer’s due diligence and (iii) remove
all equipment, tools or other property brought onto the Assets in connection with Buyer’s due
diligence. Any disturbance to the Assets (including the leasehold associated therewith) resulting
from Buyer’s due diligence will be promptly corrected by Buyer.

          (g) During all periods that Buyer and/or any of Buyer’s Representatives are on the Assets,
Buyer shall maintain, at its sole expense and with insurers reasonably satisfactory to Seller,
policies of insurance of the types and in the amounts reasonably requested by Seller. Coverage
under all insurance required to be carried by Buyer hereunder will (i) be primary insurance, (ii)
list Seller Indemnified Parties as additional insureds, (iii) waive subrogation against Seller
Indemnified Parties and (iv) provide for 5 days prior notice to Seller in the event of cancellation
or modification of the policy or reduction in coverage. Upon request by Seller, Buyer shall
provide evidence of such insurance to Seller prior to entering the Assets.

     10.2 Confidentiality. Buyer acknowledges that, pursuant to its right of access to the
Records, the Assets, Buyer will become privy to confidential and other information of Seller and
that such confidential information shall be held confidential by Buyer and Buyer’s Representatives
in accordance with the terms of the Confidentiality Agreement. If the Closing should occur, the
foregoing confidentiality restriction on Buyer, including the Confidentiality Agreement, shall
terminate (except as to (a) such portion of the Assets that are not conveyed to Buyer pursuant to
the provisions of this Agreement, (b) the Excluded Assets and (c) information related to assets
other than the Assets).

     10.3 Disclaimers.

          (a) EXCEPT AS AND TO THE LIMITED EXTENT EXPRESSLY SET FORTH IN ARTICLE IV AND SECTION 11.1(b)
OF THIS AGREEMENT, THE ASSIGNMENTS OR IN THE CERTIFICATE DELIVERED AT THE CLOSING BY SELLER
PURSUANT TO SECTION 9.3(j) (I) SELLER MAKES NO REPRESENTATIONS OR WARRANTIES, EXPRESS, STATUTORY OR
IMPLIED, AND (II) SELLER EXPRESSLY DISCLAIMS ALL LIABILITY AND RESPONSIBILITY FOR ANY
REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION MADE OR COMMUNICATED (ORALLY OR IN WRITING) TO
BUYER OR ANY OF ITS AFFILIATES, EMPLOYEES, AGENTS, CONSULTANTS OR REPRESENTATIVES (INCLUDING, ANY
OPINION, INFORMATION, PROJECTION OR ADVICE THAT MAY HAVE BEEN PROVIDED TO BUYER BY ANY OFFICER,
DIRECTOR, EMPLOYEE, AGENT, CONSULTANT, REPRESENTATIVE OR ADVISOR OF SELLER OR ANY OF ITS
AFFILIATES).

          (b) EXCEPT AS AND TO THE LIMITED EXTENT EXPRESSLY REPRESENTED OTHERWISE IN ARTICLE IV, THE
ASSIGNMENTS OR IN THE CERTIFICATE DELIVERED AT THE CLOSING BY SELLER PURSUANT TO SECTION 9.3(j),
AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SELLER EXPRESSLY DISCLAIMS ANY REPRESENTATION
OR

45

 

WARRANTY, EXPRESS, STATUTORY OR IMPLIED, AS TO (I) TITLE TO ANY OF THE ASSETS, (II) THE
CONTENTS, CHARACTER OR NATURE OF ANY REPORT OF ANY PETROLEUM ENGINEERING CONSULTANT OR ANY
ENGINEERING, GEOLOGICAL OR SEISMIC DATA OR INTERPRETATION, RELATING TO THE ASSETS, (III) THE
QUANTITY, QUALITY OR RECOVERABILITY OF HYDROCARBONS IN OR FROM THE ASSETS, (IV) ANY ESTIMATES OF
THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE ASSETS, (V) THE PRODUCTION OF
HYDROCARBONS FROM THE ASSETS, (VI) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN
OR MARKETABILITY OF THE ASSETS, (VII) THE CONTENT, CHARACTER OR NATURE OF ANY INFORMATION
MEMORANDUM, REPORTS, BROCHURES, CHARTS OR STATEMENTS PREPARED BY SELLER OR THIRD PARTIES WITH
RESPECT TO THE ASSETS, (VIII) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE
TO BUYER OR ITS AFFILIATES OR ITS OR THEIR EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR
ADVISORS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR
PRESENTATION RELATING THERETO AND (IX) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM PATENT OR
TRADEMARK INFRINGEMENT. EXCEPT AS AND TO THE LIMITED EXTENT EXPRESSLY REPRESENTED OTHERWISE IN
ARTICLE IV OF THIS AGREEMENT, THE ASSIGNMENTS OR IN THE CERTIFICATE DELIVERED AT THE CLOSING BY
SELLER PURSUANT TO SECTION 9.3(j), SELLER FURTHER DISCLAIMS ANY REPRESENTATION OR WARRANTY,
EXPRESS, STATUTORY OR IMPLIED, OF MERCHANTABILITY, FREEDOM FROM LATENT VICES OR DEFECTS, FITNESS
FOR A PARTICULAR PURPOSE OR CONFORMITY TO MODELS OR SAMPLES OF MATERIALS OF ANY OF THE ASSETS,
RIGHTS OF A PURCHASER UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION OR RETURN OF
THE PURCHASE PRICE, IT BEING EXPRESSLY UNDERSTOOD AND AGREED BY THE PARTIES THAT BUYER SHALL BE
DEEMED TO BE OBTAINING THE ASSETS IN THEIR PRESENT STATUS, CONDITION AND STATE OF REPAIR, “AS IS”
AND “WHERE IS” WITH ALL FAULTS OR DEFECTS (KNOWN OR UNKNOWN, LATENT, DISCOVERABLE OR
UNDISCOVERABLE), AND THAT BUYER HAS MADE OR CAUSED TO BE MADE SUCH INSPECTIONS OF THE ASSETS AND
EAOC AS BUYER DEEMS APPROPRIATE.

          (c) OTHER THAN AS AND TO THE LIMITED EXTENT EXPRESSLY REPRESENTED OTHERWISE IN SECTION 4.14
AND THE CORRESPONDING REPRESENTATION CONTAINED IN THE CERTIFICATE DELIVERED AT THE CLOSING BY
SELLER PURSUANT TO SECTION 9.3(j), SELLER HAS NOT AND WILL NOT MAKE ANY REPRESENTATION OR WARRANTY
REGARDING ANY MATTER OR CIRCUMSTANCE RELATING TO ENVIRONMENTAL LAWS, THE RELEASE OF HAZARDOUS
SUBSTANCES INTO THE ENVIRONMENT OR THE PROTECTION OF HUMAN HEALTH, SAFETY, NATURAL RESOURCES OR THE
ENVIRONMENT, OR ANY OTHER ENVIRONMENTAL CONDITION OF THE ASSETS, AND NOTHING IN THIS AGREEMENT OR
OTHERWISE SHALL BE CONSTRUED AS SUCH A REPRESENTATION OR WARRANTY, AND SUBJECT TO

46

 

BUYER’S LIMITED RIGHTS AS EXPRESSLY SPECIFIED IN THIS AGREEMENT FOR A BREACH OF SELLER’S
REPRESENTATIONS SET FORTH IN SECTION 4.14, OR THE CORRESPONDING REPRESENTATION CONTAINED IN THE
CERTIFICATE DELIVERED AT THE CLOSING BY SELLER PURSUANT TO SECTION 9.3(j), BUYER SHALL BE DEEMED TO
BE OBTAINING THE ASSETS “AS IS” AND “WHERE IS” WITH ALL FAULTS FOR PURPOSES OF THEIR ENVIRONMENTAL
CONDITION AND THAT BUYER HAS MADE OR CAUSED TO BE MADE SUCH ENVIRONMENTAL INSPECTIONS OF THE ASSETS
AS BUYER DEEMS APPROPRIATE.

          (d) SELLER AND BUYER AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE
DISCLAIMERS OF CERTAIN REPRESENTATIONS AND WARRANTIES CONTAINED IN THIS SECTION 10.3 ARE
“CONSPICUOUS” DISCLAIMERS FOR THE PURPOSE OF ANY APPLICABLE LAW.

ARTICLE XI

TITLE MATTERS; CASUALTY; TRANSFER RESTRICTIONS

     11.1 Seller’s Title.

          (a) General Disclaimer of Title Warranties and Representations. Except for the
special warranties of title contained in the Assignments, and without limiting Buyer’s remedies for
Title Defects set forth in this Article XI, Seller makes no warranty or representation, express,
implied, statutory or otherwise, with respect to Seller’s title to any of the Assets and, except
for Buyer’s remedies for a breach by Seller of Section 6.1, Buyer acknowledges and agrees that
Buyer’s sole remedy for any defect of title, including any Title Defect, with respect to any of the
Assets (i) before Closing, shall be as set forth in Section 11.2 and (ii) after Closing, shall be
pursuant to the special warranties of title contained in the Assignments.

          (b) Special Warranty of Title. The RTP Assignment delivered at Closing, together with
the Special Warranty Deed delivered at Closing, will contain a special warranty of title by RTP,
subject, however, to the Permitted Encumbrances. The EAOC Assignment delivered at Closing will
contain a special warranty of title by EAOC, subject, however, to the Permitted Encumbrances. Said
special warranties of title contained in the Assignments shall be subject to the further
limitations and provisions of this Article XI.

          (c) Recovery on Special Warranties.

               (i) Buyer’s Assertion of Title Warranty Breaches. Buyer shall furnish Seller a Title
Defect Notice meeting the requirements of Section 11.2(a) setting forth any matters which Buyer
intends to assert as a breach of the special warranties of title contained in the Assignments.
Seller shall have a reasonable opportunity, but not the obligation, to cure prior to Closing any
Title Defect asserted by Buyer pursuant to this Section 11.1(c)(i). Buyer agrees to reasonably
cooperate with any attempt by Seller to cure any such Title Defect.

               (ii) Limitations on Special Warranty. For purposes of (A) the special warranties of
title contained in the RTP Assignment and the Special Warranty Deed, the value of

47

 

the RTP Assets set forth in Exhibit A, Exhibit A-1 and Exhibit A-2, as applicable, and (B) the
special warranty of title contained in the EAOC Assignment, the value of the EAOC Assets set forth
in Exhibit A-4, in each case, shall be deemed to be the Allocated Value thereof, as adjusted
herein. Recovery on the special warranties of title contained in the Assignments shall be limited
to an amount (without any interest accruing thereon) equal to the reduction in the Purchase Price
to which Buyer would have been entitled had Buyer asserted the Title Defect giving rise to such
breach of the special warranty of title contained in the Assignments, as applicable, as a Title
Defect prior to Closing pursuant to Section 11.2, in each case taking into account the Individual
Title Defect Threshold and the Defect Deductible. Seller shall be entitled to offset any amount
owed by Seller for breach of the special warranties of title contained in the Assignments with
respect to any Asset by the amount of any Title Benefits with respect to such Asset as to which
Seller gives Buyer notice on or prior to the Title Claim Date.

     11.2 Notice of Title Defects; Defect Adjustments.

          (a) Title Defect Notices. Buyer must deliver, on or before 5:00 p.m. (Central Time)
on April 22, 2011 (the “Title Claim Date”), claim notices to Seller meeting the requirements of
this Section 11.2(a) (collectively the “Title Defect Notices” and individually a “Title Defect
Notice”) setting forth any matters which, in Buyer’s reasonable opinion, constitute Title Defects
and which Buyer intends to assert as a Title Defect pursuant to this Section 11.2. For all
purposes of this Agreement and notwithstanding anything herein to the contrary (except for the
special warranties of title contained in the Assignments as limited by Section 11.1(c)), Buyer
shall be deemed to have waived, and Seller shall have no liability for, any Title Defect that Buyer
fails to assert as a Title Defect by a Title Defect Notice received by Seller on or before the
Title Claim Date. To be effective, each Title Defect Notice shall be in writing, and shall include
(i) a description of the alleged Title Defect and the Asset, or portion thereof, affected by such
Title Defect (each a “Title Defect Property”), (ii) the Allocated Value of each Title Defect
Property, (iii) supporting documents reasonably necessary for Seller to verify the existence of
such Title Defect, and (iv) the amount by which Buyer reasonably believes the Allocated Value of
each Title Defect Property is reduced by such Title Defect and the computations upon which Buyer’s
belief is based. To give Seller an opportunity to commence reviewing and curing Title Defects,
Buyer agrees to use reasonable efforts to give Seller, on or before the end of each calendar week
prior to the Title Claim Date, written notice of all Title Defects discovered by Buyer during the
preceding calendar week, which notice may be preliminary in nature and supplemented prior to the
Title Claim Date. Buyer shall also promptly furnish Seller with written notice of any Title
Benefit which is discovered by any of Buyer’s or any of its Affiliate’s employees, title attorneys,
landmen or other title examiners while conducting Buyer’s due diligence with respect to the Assets
prior to the Title Claim Date.

          (b) Title Benefit Notices. Seller shall have the right, but not the obligation, to
deliver to Buyer on or before the Title Claim Date with respect to each Title Benefit a notice (a
“Title Benefit Notice”) including (i) a description of the Title Benefit and the Assets affected by
the Title Benefit, (ii) supporting documents reasonably necessary for Buyer to verify the existence
of such Title Benefit and (iii) the amount by which Seller reasonably believes the Allocated Value
of such Assets is increased by the Title Benefit and the computations upon which Seller’s belief is
based. Seller shall be deemed to have waived any Title Benefits that Seller fails to provide a
Title Benefit Notice therefore on or before the Title Claim Date.

48

 

          (c) Seller’s Right to Cure. Seller shall have the right, but not the obligation, to
attempt, at its sole cost, to cure at any time prior to Closing (the “Cure Period”) any Title
Defects of which it has been advised by Buyer.

          (d) Remedies for Title Defects. Subject to Seller’s continuing right to dispute the
existence of a Title Defect and/or the Title Defect Amount asserted with respect thereto and
subject to the rights of the Parties pursuant to Section 14.1(c), in the event that any Title
Defect timely asserted by Buyer in accordance with Section 11.2(a) is not waived in writing by
Buyer or cured on or before Closing, then, subject to the Individual Title Defect Threshold and the
Defect Deductible, Seller shall, at its sole option, elect to:

               (i) reduce the Purchase Price by the Title Defect Amount determined pursuant to Section
11.2(g) or Section 11.2(j);

               (ii) indemnify Buyer against all Liability resulting from such Title Defect with respect to
the Assets pursuant to an indemnity agreement (the “Title Indemnity Agreement”) substantially in
the form of Exhibit I;

               (iii) retain the entirety of the Title Defect Property that is subject to such Title Defect,
together with all associated Assets, in which event the Purchase Price shall be reduced by an
amount equal to the Allocated Value of such Title Defect Property and such associated Assets; or

               (iv) if applicable, terminate this Agreement pursuant to Section 14.1(c);

provided, however, in each instance Seller may elect the options set forth in clauses (ii) or (iii)
above only to the extent Buyer consents in writing after the date hereof to be bound by and subject
to any such option (such consent to be exercised, withheld, conditioned or delayed at the sole
discretion of Buyer). Seller shall be deemed to have elected, in all cases, the option set forth
in Section 11.2(d)(i) except to the extent that (A) Buyer consents in writing to be bound by and
subject to the options set forth in clauses (ii) or (iii) above and Seller also elects such option
or (B) Seller is permitted to, and elects to, terminate this Agreement under Section 14.1(c).

          (e) Remedies for Title Benefits. With respect to each Lease affected by Title
Benefits reported under Section 11.2(b), as Seller’s sole and exclusive remedies for any Title
Benefits, the amount (the “Title Benefit Amount”) equal to the increase in the Allocated Value for
such Asset caused by such Title Benefits, as determined pursuant to Section 11.2(h), shall be
applied as to offset the aggregate Title Defect Amounts attributable to Title Defects and the
aggregate Remediation Amounts attributable to Environmental Defects.

          (f) Exclusive Remedy. Except for Buyer’s (i) remedies for a breach by Seller of
Section 6.1(b)(ii), (ii) rights under the special warranties of title contained in the Assignments
and (iii) rights to terminate this Agreement pursuant to Section 14.1(c), the provisions set forth
in Section 11.2(d) shall be the exclusive right and remedy of Buyer with respect to RTP’s or EAOC’s
failure to have Defensible Title or any other title matter with respect to any Asset.

          (g) Title Defect Amount. The amount by which the Allocated Value of the affected
Title Defect Property is reduced as a result of the existence of a Title Defect shall be the

49

 

“Title Defect Amount” and shall be determined in accordance with the following terms and
conditions:

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

               (ii) if the Title Defect is an Encumbrance that is undisputed and liquidated in amount, then
the Title Defect Amount shall be the amount necessary to be paid to remove the Title Defect from
the Title Defect Property;

               (iii) if the Title Defect represents a discrepancy between (A) RTP’s Net Revenue Interest for
any Subject Well and (B) RTP’s Net Revenue Interest set forth in Exhibit A-1 or Exhibit A-2, as
applicable, then the Title Defect Amount shall be the product of the Allocated Value of such Title
Defect Property multiplied by a fraction, the numerator of which is the Net Revenue Interest
decrease and the denominator of which is the Net Revenue Interest set forth in Exhibit A-1 or
Exhibit A-2, as applicable;

               (iv) if the Title Defect represents an obligation, Encumbrance upon or other defect in title
to the Title Defect Property of a type not described above, then the Title Defect Amount shall be
determined by taking into account the Allocated Value of the Title Defect Property, the portion of
the Title Defect Property affected by the Title Defect, the legal effect of the Title Defect, the
potential economic effect of the Title Defect over the life of the Title Defect Property, the
values placed upon the Title Defect by Buyer and Seller and such other reasonable factors as are
necessary to make a proper evaluation; provided, however, that if such Title Defect is reasonably
capable of being cured, the Title Defect Amount shall not be greater than the reasonable cost and
expense of curing such Title Defect;

               (v) the Title Defect Amount with respect to a Title Defect Property shall be determined
without duplication of any costs or losses included in another Title Defect Amount hereunder;

               (vi) if a Title Defect does not affect a Title Defect Property throughout the entire remaining
productive life of such Title Defect Property, such fact shall be taken into account in determining
the Title Defect Amount; and

               (vii) notwithstanding anything to the contrary in this Article XI, the aggregate Title Defect
Amounts attributable to the effects of all Title Defects upon any single Title Defect Property
shall not exceed the Allocated Value of such Title Defect Property.

          (h) Title Benefit Amount. The Title Benefit Amount resulting from a Title Benefit
shall be determined in accordance with the following methodology, terms and conditions:

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

               (ii) if the Title Benefit represents a discrepancy between (A) RTP’s Net Revenue Interest for
any Subject Well and (B) RTP’s Net Revenue Interest set forth in

50

 

Exhibit A-1 or Exhibit A-2, as applicable, then the Title Benefit Amount shall be the product
of the Allocated Value of the affected Subject Well multiplied by a fraction, the numerator of
which is the Net Revenue Interest increase and the denominator of which is the Net Revenue Interest
set forth in Exhibit A-1 or Exhibit A-2, as applicable; and

               (iii) if the Title Benefit is of a type not described above, then the Title Benefit Amounts
shall be determined by taking into account the Allocated Value of the RTP Asset affected by such
Title Benefit, the portion of such RTP Asset affected by such Title Benefit, the legal effect of
the Title Benefit, the potential economic effect of the Title Benefit over the life of such RTP
Asset, the values placed upon the Title Benefit by Buyer and Seller and such other reasonable
factors as are necessary to make a proper evaluation.

          (i) Title Deductibles. Notwithstanding anything to the contrary, (i) in no event
shall there be any adjustments to the Purchase Price or other remedies provided by Seller for any
individual Title Defect for which the Title Defect Amount does not exceed $25,000 (“Individual
Title Defect Threshold”); and (ii) in no event shall there be any adjustments to the Purchase Price
or other remedies provided by Seller for any Title Defect that exceeds the Individual Title Defect
Threshold unless (A) the sum of (1) the Title Defect Amounts of all such Title Defects that exceed
the Individual Title Defect Threshold (excluding any Title Defects cured by Seller), plus (2) all
Remediation Amounts of all Environmental Defects that exceed the Individual Environmental Defect
Threshold (excluding any Environmental Defects cured by Seller), minus (3) all Title Benefit
Amounts, exceeds (B) the Defect Deductible, after which point Buyer shall be entitled to
adjustments to the Purchase Price or other remedies only with respect to such Title Defects in
excess of such Defect Deductible.

          (j) Title Dispute Resolution. Seller and Buyer shall attempt to agree on all Title
Defects, Title Benefits, Title Defect Amounts and Title Benefit Amounts prior to Closing. If
Seller and Buyer are unable to agree by Closing, the Title Defect Amounts and Title Benefit Amounts
in dispute shall be exclusively and finally resolved pursuant to this Section 11.2(j). There shall
be a single arbitrator, who shall be a title attorney with at least 10 years experience in oil and
gas titles involving properties in the regional area in which the Title Defect Properties are
located, as selected by mutual agreement of Buyer and Seller within 15 days after the end of the
Cure Period (the “Title Arbitrator”). In the event the Parties are unable to mutually agree upon
the Title Arbitrator within such time period, then each Party will nominate a candidate to be the
Title Arbitrator, and such candidates so nominated by the Parties shall together determine the
Title Arbitrator. The arbitration proceeding shall be held in Houston, Texas. The Title
Arbitrator’s determination shall be made within 20 days after submission of the matters in dispute
and shall be final and binding upon both Parties, without right of appeal. In making his
determination, the Title Arbitrator shall be bound by the rules set forth in Section 11.2(g) and
Section 11.2(h) and, subject to the foregoing, may consider such other matters as in the opinion of
the Title Arbitrator are necessary to make a proper determination. The Title Arbitrator, however,
may not award the Buyer a greater Title Defect Amount than the Title Defect Amount claimed by Buyer
in its applicable Title Defect Notice. The Title Arbitrator shall act as an expert for the limited
purpose of determining the specific disputed Title Defect, Title Benefit, Title Defect Amounts
and/or Title Benefit Amounts submitted by either Party and may not award damages, interest or
penalties to either Party with respect to any matter. Seller and Buyer shall each bear its own
legal fees and other costs of presenting its case. Each of Seller and Buyer shall

51

 

bear one-half of the costs and expenses of the Title Arbitrator. To the extent that the award
of the Title Arbitrator with respect to any Title Defect Amount or Title Benefit Amount is not
taken into account as an adjustment to the Purchase Price pursuant to Section 3.4 or Section 3.5,
then within 10 days after the Title Arbitrator delivers written notice to Buyer and Seller of his
award with respect to a Title Defect Amount or a Title Benefit Amount and subject to Section
11.2(i), (i) Buyer shall pay to Seller the amount, if any, so awarded by the Title Arbitrator to
Seller and (ii) Seller shall pay to Buyer the amount, if any, so awarded by the Title Arbitrator to
Buyer. Nothing herein shall operate to cause the Closing to be delayed on account of any
arbitration hereunder and to the extent any adjustments are not agreed upon by the Parties as of
the Closing, the Purchase Price shall not be adjusted therefor as of the Closing and subsequent
adjustments thereto, if any, will be made pursuant to Section 3.6 or this Section 11.2.

     11.3 Casualty Loss.

          (a) Notwithstanding anything herein to the contrary from and after the Effective Time, if
Closing occurs, Buyer shall assume all risk of loss with respect to production of Hydrocarbons
through normal depletion (including watering out of any Well, collapsed casing or sand infiltration
of any Well) and the depreciation of Personal Property due to ordinary wear and tear, in each case,
with respect to the Assets.

          (b) If, after the date of this Agreement but prior to the Closing Date, any portion of the
Assets is destroyed by fire or other casualty, Buyer shall nevertheless be required to close and
Seller, at the Closing, shall pay to Buyer all sums paid to Seller by Third Parties by reason of
such casualty insofar as with respect to the Assets and shall assign, transfer and set over to
Buyer or subrogate Buyer to all of Seller’s right, title and interest (if any) in insurance claims,
unpaid awards and other rights against Third Parties (excluding any Liabilities, other than
insurance claims, of or against any Seller Indemnified Parties) arising out of such casualty
insofar as with respect to the Assets; provided, however, that Seller shall reserve and retain (and
Buyer shall assign to Seller) all rights, title, interests and claims against Third Parties for the
recovery of Seller’s costs and expenses incurred prior to the Closing in pursuing or asserting any
such insurance claims or other rights against Third Parties.

     11.4 Preferential Purchase Rights and Consents to Assign.

          (a) With respect to each preferential purchase right, right of first refusal or similar right
(each, a “Preferential Purchase Right”) pertaining to an Asset and the transactions contemplated
hereby set forth in Schedule 4.10 or, if not set forth on such Schedule, of which Buyer gives
Seller notice prior to the Closing, Seller, prior to the Closing, shall send to the holder of each
such Preferential Purchase Right a notice, in material compliance with the contractual provisions
applicable to such right. In addition, prior to the Closing, Seller shall send to each holder of a
right to consent to assignment pertaining to the Assets and the transactions contemplated hereby
set forth in Schedule 4.4 or, if not set forth on such Schedule, of which Buyer gives Seller notice
prior to the Closing, a notice seeking such holder’s consent to the transactions contemplated
hereby.

          (b) If, prior to the Closing, any holder of a Preferential Purchase Right notifies Seller that
it intends to consummate the purchase of the Asset to which its Preferential Purchase

52

 

Right applies or if the time for exercising such Preferential Purchase Right has not expired,
then that Asset shall be excluded from the Assets to be acquired by Buyer to the extent of the
interest affected by the Preferential Purchase Right, and the Purchase Price shall be reduced by
the Allocated Value of the relevant Asset. Seller shall be entitled to all proceeds paid by a
Person exercising a Preferential Purchase Right prior to the Closing. If such holder of such
Preferential Purchase Right thereafter fails to consummate the purchase of the Asset covered by
such Preferential Purchase Right on or before 60 days following the Closing Date or the time for
exercising such Preferential Purchase Right expires without exercise by the holders thereof, then
Seller shall so notify Buyer, and Buyer shall purchase, on or before 10 days following receipt of
such notice and subject to Buyer’s satisfaction that such Preferential Purchase Right has been
waived or the time for exercising such right has expired, such Asset from Seller, under the terms
of this Agreement for a price equal to the portion of the Purchase Price previously allocated to
it.

          (c) All Assets for which any Preferential Purchase Right has been waived or as to which the
period to exercise such right has expired prior to the Closing shall (in each case) be sold
(directly or indirectly) to Buyer at the Closing pursuant to the provisions of this Agreement.

          (d) If (i) Seller fails to obtain a consent (or a waiver as to any prohibition on assignment)
to the assignment of any Asset set forth in Schedule 4.4 prior to the Closing and the failure to
obtain such consent (or waiver) would cause (A) the assignment of the Assets affected thereby to
Buyer to be void or voidable or (B) the termination of a Lease or Right-of-Way under the express
terms thereof or (ii) a consent or waiver requested by Seller is denied in writing (each, a
“Required Consent”), then, in each case, that portion of such Asset shall be excluded from the
Assets to be acquired by Buyer and the Purchase Price shall be reduced by the Allocated Value of
that portion of such Assets. In the event that a Required Consent (with respect to an Asset
excluded pursuant to this Section 11.4(d)) that was not obtained prior to Closing is obtained
within 60 days following Closing, then, within 10 days after such consent is obtained, Buyer shall
purchase such portion of such Asset that was so excluded and pay to Seller the amount by which the
Purchase Price was reduced with respect to such portion of such Asset (subject to any adjustments
pursuant to Section 3.3), and Seller shall assign to Buyer such portion of such Asset pursuant to
an assignment in form substantially similar to the RTP Assignment.

          (e) If Seller fails to obtain a consent set forth in Schedule 4.4 prior to the Closing and (i)
the failure to obtain such consent would not cause (A) the assignment of the Assets affected
thereby to Buyer to be void or voidable or (B) the termination of a Lease or Right-of-Way under the
express terms thereof and (ii) such consent requested by Seller is not denied in writing, then the
portion of the Asset subject to such failed consent shall be acquired by Buyer at Closing as part
of the Assets and Buyer shall have no claim against, and Seller shall have no Liability for, the
failure to obtain such consent.

ARTICLE XII

ENVIRONMENTAL MATTERS

     12.1 Notice of Environmental Defects.

53

 

          (a) Environmental Defect Notices. If Buyer discovers any Environmental Condition
which, in its reasonable opinion, Buyer determines constitutes an Environmental Defect, Buyer shall
promptly notify Seller within 3 Business Days of such discovery and, in any event, on or before
5:00 p.m. (Central Time) on April 22, 2011 (the “Environmental Claim Date”). To be effective,
notice of an Environmental Defect (an “Environmental Defect Notice”) shall be in writing and shall
include (i) a description of the Environmental Condition constituting the asserted Environmental
Defect(s), including the GPS coordinates of such Environmental Condition (when available), (ii) the
Asset(s) (or portions thereof) affected by the asserted Environmental Defect (each, an
“Environmental Defect Property”), (iii) documentation, including any physical measurements or, to
the extent permitted by Seller under Section 10.1, lab analyses or photographs, sufficient for
Seller to verify the existence of the asserted Environmental Defect(s), (iv) the Allocated Value of
each Environmental Defect Property, (v) the Remediation Amount (itemized in reasonable detail) that
Buyer asserts is attributable to such Environmental Defect and the computations and information
upon which Buyer’s belief is based, and (vi) the specific Environmental Law that is applicable to
the Environmental Defect and the violation of such Environmental Law, if any. Buyer’s calculation
of the Remediation Amount included in the Environmental Defect Notice must describe in reasonable
detail the Remediation proposed for the Environmental Condition that gives rise to the asserted
Environmental Defect and identify all assumptions used by the Buyer in calculating the Remediation
Amount, including the standards that Buyer asserts must be met to comply with Environmental Laws.
For all purposes of this Agreement but subject to Buyer’s remedy for a breach of Seller’s
representation contained in Section 4.14 or the corresponding representation contained in the
certificate delivered at the Closing by Seller pursuant to Section 9.3(j), Buyer shall be deemed to
have waived, and Seller shall have no liability for, any Environmental Defect which Buyer fails to
assert as an Environmental Defect by a Environmental Defect Notice received by Seller on or before
the Environmental Claim Date. Seller shall have the right, but not the obligation, to cure any
asserted Environmental Defect on or before Closing.

          (b) Remedies for Environmental Defects. Subject to Seller’s continuing right to
dispute the existence of an Environmental Defect and/or the Remediation Amount asserted with
respect thereto, and subject to the rights of the Parties pursuant to Section 14.1(c), in the event
that any Environmental Defect timely asserted by Buyer in accordance with Section 12.1(a) is not
waived in writing by Buyer or cured on or before Closing, then, subject to the Individual
Environmental Defect Threshold and the Defect Deductible, Seller shall, at its sole option, elect
to:

               (i) reduce the Purchase Price by the Remediation Amount;

               (ii) assume responsibility for the Remediation of such Environmental Defect;

               (iii) retain the entirety of the Environmental Defect Property that is subject to such
Environmental Defect, together with all associated Assets, in which event the Purchase Price shall
be reduced by an amount equal to the Allocated Value of such Environmental Defect Property and such
associated Assets;

54

 

               (iv) indemnify Buyer against all Liability resulting from such Environmental Defect with
respect to the Environmental Defect Property pursuant to an indemnity agreement (the “Environmental
Indemnity Agreement”) substantially in the form of Exhibit J; or

               (v) if applicable, terminate this Agreement pursuant to Section 14.1(c);

provided, however, in each instance Seller may elect the options set forth in clauses (ii), (iii)
or (iv) above only to the extent Buyer consents in writing after the date hereof to be bound by and
subject to any such option (such consent to be exercised, withheld, conditioned or delayed at the
sole discretion of Buyer). Seller shall be deemed to have elected, in all cases, the option set
forth in Section 12.1(b)(i) except to the extent that (A) Buyer consents in writing to be bound by
and subject to the options set forth in clauses (ii), (iii) or (iv) above and Seller also elects
such option or (B) Seller is permitted to, and elects to, terminate this Agreement under Section
14.1(c). If Seller elects the option set forth in clause (i) above, Buyer shall be deemed to have
assumed responsibility for all of the costs and expenses attributable to the Remediation of the
Environmental Condition attributable to such Environmental Defect and such responsibility of Buyer
shall be deemed to constitute part of the Assumed Obligations hereunder. If Seller elects, and
Buyer consents to, the option set forth in clause (ii) above, Seller shall use reasonable efforts
to implement such Remediation in a manner which is consistent with the requirements of
Environmental Laws in a timely fashion for the type of Remediation that Seller elects to undertake
and Buyer, effective as of the Closing, grants to Seller and its representatives, access to the to
conduct such Remediation. Seller will be deemed to have adequately completed the Remediation
required in the immediately preceding sentence (1) upon receipt of a certificate or approval from
the applicable Governmental Authority that the Remediation has been implemented to the extent
necessary to comply with existing Laws or (2) upon receipt of a certificate from a licensed
professional engineer that the Remediation has been implemented to the extent necessary to comply
with existing Laws. Notwithstanding anything to the contrary in this Article XII, the aggregate
Remediation Amounts attributable to the effects of all Environmental Defects upon any single
Environmental Defect Property may exceed the Allocated Value of such Environmental Defect Property;
provided that if such amounts exceed such Allocated Value thereof then Seller shall have the right
to elect the option set forth in Section 12.1(b)(iii) without the consent of Buyer.

          (c) Exclusive Remedy. Except as provided in Article XIII and Buyer’s rights to
terminate this Agreement pursuant to Section 14.1(c), the provisions set forth in Section 12.1(b)
shall be the exclusive right and remedy of Buyer with respect to any Environmental Defect with
respect to any Asset.

          (d) Environmental Deductibles. Notwithstanding anything to the contrary, (i) in no
event shall there be any adjustments to the Purchase Price or other remedies provided by Seller for
any individual Environmental Defect for which the Remediation Amount does not exceed $50,000
(“Individual Environmental Defect Threshold”); and (ii) in no event shall there be any adjustments
to the Purchase Price or other remedies provided by Seller for any Environmental Defect for which
the Remediation Amount exceeds the Individual Environmental Defect Threshold unless (A) the sum of
(1) the Remediation Amounts of all such Environmental Defects that exceed the Individual
Environmental Defect Threshold (excluding any

55

 

Environmental Defects cured by Seller), plus (2) the Title Defect Amounts of all such Title
Defects that exceed the Individual Title Defect Threshold (excluding any Title Defects cured by
Seller), minus (3) all Title Benefit Amounts, exceeds (B) the Defect Deductible, after which point
Buyer shall be entitled to adjustments to the Purchase Price or other remedies only with respect to
such Environmental Defects in excess of the Defect Deductible.

          (e) Environmental Dispute Resolution. Seller and Buyer shall attempt to agree on all
Environmental Defects and Remediation Amounts prior to Closing. If Seller and Buyer are unable to
agree by Closing, the Environmental Defects and/or Remediation Amounts in dispute shall be
exclusively and finally resolved by arbitration pursuant to this Section 12.1(e). There shall be a
single arbitrator, who shall be an environmental attorney with at least 10 years experience in
environmental matters involving oil and gas producing properties in the regional area in which the
affected Assets are located, as selected by mutual agreement of Buyer and Seller within 15 days
after the Closing Date (the “Environmental Arbitrator”). In the event the Parties are unable to
mutually agree upon the Environmental Arbitrator within such time period, then each Party will
nominate a candidate to be the Environmental Arbitrator, and such candidates so nominated by the
Parties shall together determine the Environmental Arbitrator. The arbitration proceeding shall be
held in Houston, Texas. The Environmental Arbitrator’s determination shall be made within 20 days
after submission of the matters in dispute and shall be final and binding upon both Parties,
without right of appeal. In making his determination, the Environmental Arbitrator shall be bound
by the rules set forth in this Section 12.1 and, subject to the foregoing, may consider such other
matters as in the opinion of the Environmental Arbitrator are necessary or helpful to make a proper
determination. The Environmental Arbitrator, however, may not award Buyer its share of any greater
Remediation Amount than the Remediation Amount claimed by Buyer in its applicable Environmental
Defect Notice. The Environmental Arbitrator shall act as an expert for the limited purpose of
determining the specific disputed Environmental Defects and/or Remediation Amounts submitted by
either Party and may not award damages, interest or penalties to either Party with respect to any
matter. Seller and Buyer shall each bear its own legal fees and other costs of presenting its case.
Each of Seller and Buyer shall bear one-half of the costs and expenses of the Environmental
Arbitrator. To the extent that the award of the Environmental Arbitrator with respect to any
Remediation Amount is not taken into account as an adjustment to the Purchase Price pursuant to
Section 3.4 or Section 3.5, then within 10 days after the Environmental Arbitrator delivers written
notice to Buyer and Seller of his award with respect to a Remediation Amount, and subject to
Section 12.1(d), (i) Buyer shall pay to Seller the amount, if any, so awarded by the Environmental
Arbitrator to Seller and (ii) Seller shall pay to Buyer the amount, if any, so awarded by the
Environmental Arbitrator to Buyer. Nothing herein shall operate to cause the Closing to be delayed
on account of any arbitration hereunder and to the extent any adjustments are not agreed upon by
the Parties as of the Closing, the Purchase Price shall not be adjusted therefor as of the Closing
and subsequent adjustments thereto, if any, will be made pursuant to Section 3.6 or this Section
12.1.

     12.2 NORM, Wastes and Other Substances. Buyer acknowledges that the Assets have been used for
exploration, development, production, gathering and transportation of oil and gas and there may be
petroleum, produced water, wastes or other substances or materials located in, on or under the
Assets or associated with the Assets. Equipment and sites included in the Assets may contain
asbestos, NORM or other Hazardous Substances. NORM may affix or

56

 

attach itself to the inside of wells, pipelines, materials and equipment as scale, or in other
forms. The wells, materials and equipment located on the Assets or included in the Assets may
contain NORM and other wastes or Hazardous Substances. NORM containing material and/or other
wastes or Hazardous Substances may have come in contact with various environmental media,
including, water, soils or sediment. Special procedures may be required for the assessment,
remediation, removal, transportation or disposal of environmental media, wastes, asbestos, NORM and
other Hazardous Substances from the Assets. For the avoidance of doubt, no Environmental Condition
involving NORM shall constitute the basis of an Environmental Defect unless such NORM results in
measured radioactivity in excess of a level of 50 μR/hr (50 micro roentgen per hour) and more than
30 piC/gram for Radium 226 and Radium 228.

ARTICLE XIII

ASSUMPTION; INDEMNIFICATION; SURVIVAL

     13.1 Assumption by Buyer. Without limiting Buyer’s rights to indemnity under this Article
XIII and Buyer’s rights under any Title Indemnity Agreement or Environmental Indemnity Agreement,
from and after the Closing, Buyer assumes and hereby agrees to fulfill, perform, pay and discharge
(or cause to be fulfilled, performed, paid and discharged) all obligations and Liabilities, known
or unknown, with respect to the Assumed Hedges (subject to Section 6.8) and the Assets, regardless
of whether such obligations or Liabilities arose prior to, on or after the Effective Time,
including obligations and Liabilities relating in any manner to the use, ownership or operation of
the Assets, including obligations to (a) furnish makeup gas and/or settle Imbalances according to
the terms of applicable gas sales, processing, gathering or transportation Applicable Contracts
included in the Assets, (b) pay Working Interests, royalties, overriding royalties and other
interests, owners’ revenues or proceeds attributable to sales of Hydrocarbons, including those held
in suspense (including those amounts for which the Purchase Price was adjusted pursuant to Section
3.3(b)(vi)) to the extent attributable to the Assets, (c) properly plug and abandon any and all
wells and pipelines, including Future Wells, inactive wells or temporarily abandoned wells, drilled
on the Assets, (d) to replug any well, wellbore or previously plugged Well on the Assets to the
extent required or necessary under applicable Laws or under Applicable Contracts, (e) dismantle or
decommission and remove any Personal Property and other property of whatever kind located on the
Assets related to or associated with operations and activities conducted by whomever on the Assets,
(f) clean up and/or remediate the Assets in accordance with any Applicable Contracts and applicable
Laws, and (g) perform all obligations applicable to or imposed on the lessee, owner, or operator
under the Leases and the Applicable Contracts, or as required by Laws (all of said obligations and
Liabilities, subject to the exclusions below, herein being referred to as the “Assumed
Obligations”); provided, Buyer does not assume, and the Assumed Obligations do not include, any of
the Retained Obligations. Seller retains any and all obligations and Liabilities, to the extent
that such obligations or Liabilities (the “Retained Obligations”) are:

               (i) attributable to or arise out of the ownership, use or operation of the Excluded Assets;

               (ii) attributable to or arise out of the actions, suits, proceedings or other matters set
forth in Schedule 13.1;

57

 

               (iii) attributable to or arise out of any Income Tax Liability or Franchise Tax Liability;

               (iv) attributable to or arise out of death or personal injury to Third Party individuals
related to or arising out of the Seller’s ownership or operation of the Assets occurring prior to
the Effective Time;

               (v) Environmental Liabilities associated with the disposal or transportation of any Hazardous
Substances from the Assets to any location not on the Assets or lands pooled or unitized therewith
and attributable to the period of Seller’s ownership of the Assets and prior to Closing; or

               (vi) attributable to any Gap Period Property Losses.

     13.2 Indemnities of Seller. Effective as of the Closing, subject to the limitations set forth
in Section 13.4 and Section 13.8 or otherwise in this Agreement, Seller shall be responsible for,
shall pay on a current basis and hereby defends, indemnifies and holds harmless Buyer and its
Affiliates, and all of its and their respective equityholders, partners, members, directors,
officers, managers, employees, agents and representatives (collectively, “Buyer Indemnified
Parties”) from and against any and all Liabilities, arising from, based upon, related to or
associated with:

          (a) any breach by Seller of any of its representations or warranties contained in Article IV
or in the certificate delivered at the Closing by Seller pursuant to Section 9.3(j);

          (b) any breach by Seller of any of its covenants or agreements under this Agreement or in the
certificate delivered at the Closing by Seller pursuant to Section 9.3(j) other than the covenants
set forth in Section 13.2(c), Section 13.2(d), Section 13.2(e), Section 13.2(f), Section 13.2(g) or
Section 13.2(h) below;

          (c) the ownership, use or operation of the Excluded Assets;

          (d) the actions, suits, proceedings or other matters set forth in Schedule 13.1;

          (e) any Income Tax Liability or Franchise Tax Liability;

          (f) death or personal injury to Third Party individuals related to or arising out of the
Seller’s ownership or operation of the Assets occurring prior to the Effective Time;

          (g) Environmental Liabilities associated with the disposal or transportation, in violation of
any Environmental Law, of any Hazardous Substances from the Assets to any location not on the
Assets or lands pooled or unitized therewith and attributable to the period of Seller’s ownership
of the Assets and prior to Closing; or

          (h) any Gap Period Property/Personal Injury Losses.

     13.3 Indemnities of Buyer. Effective as of the Closing, Buyer and its successors and assigns
shall assume, be responsible for, shall pay on a current basis and hereby defends,

58

 

indemnifies, holds harmless and forever releases Seller and its Affiliates, and all of its and
their respective equityholders, partners, members, directors, officers, managers, employees, agents
and representatives (collectively, “Seller Indemnified Parties”) from and against any and all
Liabilities arising from, based upon, related to or associated with:

          (a) any breach by Buyer of any of its representations or warranties contained in Article V or
in the certificate delivered at the Closing by Buyer pursuant to Section 9.3(k);

          (b) any breach by Buyer of any of its covenants or agreements under this Agreement or in the
certificate delivered at the Closing by Buyer pursuant to Section 9.3(k); or

          (c) the Assumed Obligations.

     13.4 Limitation on Liability.

          (a) Seller shall not have any liability for any indemnification under Section 13.2(a) (other
than the liability with respect to the breach or failure of any of the Fundamental Representations)
or Section 13.2(b) (other than with respect to the breach or failure of any of the Specified
Covenants) (i) for any individual Liability unless the amount of such Liability exceeds $100,000,
and (ii) until and unless the aggregate amount of all Liabilities for which Claim Notices are
delivered by Buyer exceeds the Indemnity Deductible and then only to the extent such Liabilities
exceed the Indemnity Deductible; provided that the adjustments to the Purchase Price under Section
3.5 and any payments in respect thereof shall not be limited by this Section 13.4(a).

          (b) Notwithstanding anything to the contrary contained in this Agreement, Seller shall not be
required to indemnify the Buyer Indemnities (i) under Section 13.2(a) (other than any obligation to
indemnify the Buyer Indemnities hereunder for any breach or failure of any of the Fundamental
Representations) or Section 13.2(b) (other than any obligation to indemnify the Buyer Indemnities
hereunder for any breach or failure of any of the Specified Covenants) for aggregate Liabilities in
excess of 20% of the Purchase Price and (ii) under the terms of this Agreement for aggregate
Liabilities in excess 100% of the Adjusted Purchase Price.

          (c) Notwithstanding anything herein to the contrary, any loss as a result of the breach by (i)
Seller of its representations or warranties contained in Article IV or in the certificate delivered
at the Closing by Seller pursuant to Section 9.3(j) or (ii) Buyer of its representations or
warranties contained in Article V or in the certificate delivered at the Closing by Seller pursuant
to Section 9.3(k) shall be determined without giving effect to any qualifiers as to materiality,
Material Adverse Effect or material adverse effect set forth in any such representations or
warranties.

          (d) To the extent that the Net Revenue Interests of Seller (and Buyer as successor in interest
to Seller) under the Assets that are the subject of the action set forth in item 3 of Schedule 4.7
are reduced as a result of such action or settlement thereof, Seller’s Liability to the Buyer
Indemnities pursuant to its indemnity in Section 13.2(d) for such reduced Net Revenue Interest
shall be determined after giving effect to any decreases or termination of any of the Clawback
ORRIs.

59

 

     13.5 Express Negligence. THE DEFENSE, INDEMNIFICATION, HOLD HARMLESS, RELEASE AND ASSUMPTION
OF THE ASSUMED OBLIGATIONS PROVISIONS PROVIDED FOR IN THIS AGREEMENT SHALL BE APPLICABLE WHETHER OR
NOT THE LIABILITIES, LOSSES, COSTS, EXPENSES AND DAMAGES IN QUESTION AROSE OR RESULTED SOLELY OR IN
PART FROM THE GROSS, SOLE, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE, STRICT LIABILITY
OR OTHER FAULT OR VIOLATION OF LAW OF OR BY ANY INDEMNIFIED PARTY. BUYER AND SELLER ACKNOWLEDGE
THAT THIS STATEMENT COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS.

     13.6 Exclusive Remedy.

          (a) Notwithstanding anything to the contrary contained in this Agreement, from and after the
Closing, Section 10.1(d), Section 13.2, Section 13.3 and the Operative Transaction Documents
contain the Parties’ exclusive remedy against each other with respect to the transactions
contemplated hereby and the sale of the Assets, including breaches of the representations,
warranties, covenants and agreements of the Parties contained in this Agreement or in any document
delivered pursuant to this Agreement.

          (b) Except for the remedies specified in Section 13.2 and the Operative Transaction Documents,
effective as of Closing, Buyer, on its own behalf and on behalf of its Affiliates, hereby releases,
remises and forever discharges Seller and its Affiliates and all such Parties’ equityholders,
partners, members, directors, officers, employees, agents and representatives from any and all
suits, legal or administrative proceedings, claims, demands, damages, losses, costs, Liabilities,
interest or causes of action whatsoever, in Law or in equity, known or unknown, which Buyer or its
Affiliates might now or subsequently may have, based on, relating to or arising out of the
ownership, use or operation of any of the Assets prior to the Closing or the condition, quality,
status or nature of any of the Assets prior to the Closing, including rights to contribution under
the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as amended,
breaches of statutory or implied warranties, nuisance or other tort actions, rights to punitive
damages, common Law rights of contribution and rights under insurance maintained by Seller or any
of its Affiliates.

     13.7 Indemnification Procedures. All claims for indemnification under Section 10.1(d),
Section 13.2 and Section 13.3 shall be asserted and resolved as follows:

          (a) For purposes of Section 10.1(d) and this Article XIII, the term “Indemnifying Party” when
used in connection with particular Liabilities shall mean the Party or Parties having an obligation
to indemnify another Party or Parties with respect to such Liabilities pursuant to Section 10.1(d)
or this Article XIII, and the term “Indemnified Party” when used in connection with particular
Liabilities shall mean the Party or Parties having the right to be indemnified with respect to such
Liabilities by another Party or Parties pursuant to Section 10.1(d) or this Article XIII.

          (b) To make claim for indemnification under Section 10.1(d), Section 13.2 or Section 13.3, an
Indemnified Party shall notify the Indemnifying Party of its claim under this

60

 

Section 13.7, including the specific details of and specific basis under this Agreement for
its claim (the “Claim Notice”). In the event that the claim for indemnification is based upon a
claim by a Third Party against the Indemnified Party (a “Claim”), the Indemnified Party shall
provide its Claim Notice promptly after the Indemnified Party has actual knowledge of the Claim and
shall enclose a copy of all papers (if any) served with respect to the Claim; provided that the
failure of any Indemnified Party to give notice of a Claim as provided in this Section 13.7 shall
not relieve the Indemnifying Party of its obligations under Section 10.1(d), Section 13.2 or
Section 13.3 (as applicable) except to the extent such failure results in insufficient time being
available to permit the Indemnifying Party to effectively defend against the Claim or otherwise
materially prejudices the Indemnifying Party’s ability to defend against the Claim. In the event
that the claim for indemnification is based upon an inaccuracy or breach of a representation,
warranty, covenant or agreement, the Claim Notice shall specify the representation, warranty,
covenant or agreement that was inaccurate or breached.

          (c) In the case of a claim for indemnification based upon a Claim, the Indemnifying Party
shall have 30 days from its receipt of the Claim Notice to notify the Indemnified Party whether it
admits or denies its liability to defend the Indemnified Party against such Claim at the sole cost
and expense of the Indemnifying Party. The Indemnified Party is authorized, prior to and during
such 30 day period, to file any motion, answer or other pleading that it shall deem necessary or
appropriate to protect its interests or those of the Indemnifying Party and that is not prejudicial
to the Indemnifying Party.

          (d) If the Indemnifying Party admits its liability, it shall have the right and obligation to
diligently defend, at its sole cost and expense, the Claim. The Indemnifying Party shall have full
control of such defense and proceedings, including any compromise or settlement thereof unless the
compromise or settlement includes the payment of any amount by (because of the Indemnity Deductible
or otherwise), the performance of any obligation by or the limitation of any right or benefit of,
the Indemnified Party, in which event such settlement or compromise shall not be effective without
the consent of the Indemnified Party, which shall not be unreasonably withheld or delayed. If
requested by the Indemnifying Party, the Indemnified Party agrees to cooperate in contesting any
Claim which the Indemnifying Party elects to contest. The Indemnified Party may participate in,
but not control, any defense or settlement of any Claim controlled by the Indemnifying Party
pursuant to this Section 13.7(d). An Indemnifying Party shall not, without the written consent of
the Indemnified Party, (i) settle any Claim or consent to the entry of any judgment with respect
thereto which does not include an unconditional written release of the Indemnified Party from all
liability in respect of such Claim or (ii) settle any Claim or consent to the entry of any judgment
with respect thereto in any manner that may materially and adversely affect the Indemnified Party
(other than as a result of money damages covered by the indemnity).

          (e) If the Indemnifying Party does not admit its liability or admits its liability but fails
to diligently prosecute or settle the Claim, then the Indemnified Party shall have the right to
defend against the Claim at the sole cost and expense of the Indemnifying Party, with counsel of
the Indemnified Party’s choosing, subject to the right of the Indemnifying Party to admit its
liability and assume the defense of the Claim at any time prior to settlement or final
determination thereof. If the Indemnifying Party has not yet admitted its liability for a Claim,
the Indemnified Party shall send written notice to the Indemnifying Party of any proposed
settlement

61

 

and the Indemnifying Party shall have the option for 10 days following receipt of such notice
to (i) admit in writing its liability for the Claim and (ii) if liability is so admitted, reject,
in its reasonable judgment, the proposed settlement.

          (f) In the case of a claim for indemnification not based upon a Claim, the Indemnifying Party
shall have 30 days from its receipt of the Claim Notice to (i) cure the Liabilities complained of,
(ii) admit its liability for such Liability or (iii) dispute the claim for such Liabilities. If
the Indemnifying Party does not notify the Indemnified Party within such 30 day period that it has
cured the Liabilities or that it disputes the claim for such Liabilities, the amount of such
Liabilities shall conclusively be deemed a liability of the Indemnifying Party hereunder.

     13.8 Survival.

          (a) The (i) representations and warranties of Seller in Article IV (other than the Fundamental
Representations) and (ii) the covenants and agreements of Seller contained herein (other than the
Specified Covenants), shall, in each case, survive the Closing for a period of 12 months after the
Closing Date. The representations of Seller in Section 4.15 and Section 4.16 shall, in each case,
survive the Closing until 30 days after the time for the applicable Taxing Authority to make an
assessment with respect to such representations and warranties has expired. The representations
and warranties of Seller in Section 4.1, Section 4.2, Section 4.3(a)(i), Section 4.3(b)(i), Section
4.3(c)(i) and Section 4.17 shall, in each case, survive the Closing without time limit.

          (b) Except as hereinafter provided in this Section 13.8(b), the Specified Covenants of Seller
shall survive closing without time limit. The Specified Covenants of Seller set forth in Section
13.2(f) and Section 13.2(h) shall survive the Closing for a period of 24 months after the Closing
Date.

          (c) Subject to Section 13.8(a) and Section 13.8(b) and except as set forth in Section 13.8(d),
the remainder of this Agreement shall survive the Closing without time limit. Representations,
warranties, covenants and agreements shall be of no further force and effect after the date of
their expiration; provided that there shall be no termination of any bona fide claim asserted
pursuant to this Agreement with respect to such a representation, warranty, covenant or agreement
prior to its expiration date.

          (d) The indemnities in Sections 13.2(a), 13.2(b), 13.3(a) and 13.3(b) shall terminate as of
the termination date of each respective representation, warranty, covenant or agreement that is
subject to indemnification, except in each case as to matters for which a specific written claim
for indemnity has been delivered to the Indemnifying Party on or before such termination date.

          (e) For the purposes of determining the survival of such provisions pursuant to this Section
13.8, the provisions of Sections 13.2(a), 13.2(b), 13.4, 13.6(a), 13.8, 13.10, 13.13, 15.9(a),
15.9(c), 15.10 and 15.11 shall not be considered “covenants” as such term is used in this Section
13.8.

62

 

     13.9 Waiver of Right to Rescission. Seller and Buyer acknowledge that, following the Closing,
the payment of money, as limited by the terms of this Agreement, shall be adequate compensation for
breach of any representation, warranty, covenant or agreement contained herein or for any other
claim arising in connection with or with respect to the transactions contemplated by this
Agreement. As the payment of money shall be adequate compensation, following the Closing, Buyer
and Seller waive any right to rescind this Agreement or any of the transactions contemplated
hereby.

     13.10 Insurance, Taxes. The amount of any Liabilities for which any of the Buyer Indemnified
Parties or Seller Indemnified Parties is entitled to indemnification under this Agreement or in
connection with or with respect to the transactions contemplated by this Agreement shall be reduced
by any corresponding (a) Tax benefit realized by any such indemnified Party or (b) insurance
proceeds actually received by any such indemnified Party under the relevant insurance arrangements.

     13.11 Non-Compensatory Damages. None of the Buyer Indemnified Parties nor Seller Indemnified
Parties shall be entitled to recover from Seller or Buyer, or their respective Affiliates, any
special, indirect, consequential, punitive, exemplary, remote or speculative damages, including
damages for lost profits of any kind arising under or in connection with this Agreement or the
transactions contemplated hereby, except to the extent any such Party suffers such damages
(including costs of defense and reasonable attorney’s fees incurred in connection with defending of
such damages) to a Third Party, which damages (including costs of defense and reasonable attorney’s
fees incurred in connection with defending against such damages) shall not be excluded by this
provision as to recovery hereunder. Subject to the preceding sentence, Buyer, on behalf of each of
the Buyer Indemnified Parties, and Seller, on behalf of each of the Seller Indemnified Parties,
waive any right to recover any special, indirect, consequential, punitive, exemplary, remote or
speculative damages, including damages for lost profits of any kind, arising in connection with or
with respect to this Agreement or the transactions contemplated hereby.

     13.12 Cooperation by Buyer — Retained Litigation. Buyer agrees to use reasonable efforts to
cooperate with Seller in connection with Seller’s defense and other actions relating to or arising
out of the litigation and claims set forth in Schedule 13.1. Buyer agrees to make available
Buyer’s employees engaged in the operation of the Assets for the purposes of providing testimony,
depositions, information and other related activities relating to such litigation and claims.

     13.13 Investigations and Knowledge. Notwithstanding anything herein to the contrary, in order
to preserve the benefit of the bargain otherwise represented by this Agreement, each Party shall be
entitled to rely upon the representations, warranties, covenants and agreements of the other Party
set forth herein notwithstanding any investigation or audit conducted or any knowledge acquired (or
capable of being acquired) before or after the Closing Date or the decision of any Party to
complete the Closing.

63

 

ARTICLE XIV

TERMINATION, DEFAULT AND REMEDIES

     14.1 Right of Termination. This Agreement and the transactions contemplated herein may be
terminated at any time prior to the Closing:

          (a) by Seller, at Seller’s option, if any of the conditions set forth in Article VIII have not
been satisfied on or before the Closing Date;

          (b) by Buyer, at Buyer’s option, if any of the conditions set forth in Article VII have not
been satisfied on or before the Closing Date and, following written notice thereof from Buyer to
Seller specifying the reason such condition is unsatisfied (including any breach by Seller of this
Agreement), such condition remain unsatisfied for a period of 10 Business Days after Seller’s
receipt of written notice thereof from Buyer;

          (c) by Buyer if the condition set forth in Section 7.4 has not been satisfied on or before the
Closing Date or by Seller if the condition set forth in Section 8.4 is not satisfied on or before
the Closing Date; or

          (d) by Seller or Buyer if the Closing shall not have occurred on or before June 1, 2011;

provided, however, that no Party shall have the right to terminate this Agreement pursuant to
clause (a), (b) or (d) above if such Party or its Affiliates are at such time in material breach of
any provision of this Agreement.

     14.2 Effect of Termination. If the obligation to close the transactions contemplated by this
Agreement is terminated pursuant to any provision of Section 14.1, then, except as provided in
Section 3.2 and except for the provisions of Sections 1.1, 10.1(d) through (g), 10.2, 10.3, 13.11,
this Section 14.2, Section 14.3 and Article XV (other than Sections 15.2(b), 15.7 and 15.8), this
Agreement shall forthwith become void and of no further force or effect and the Parties shall have
no liability or obligation hereunder except and to the extent such termination results from the
willful breach by a Party of any of its covenants or agreements hereunder (in which case the other
Party shall have all rights and remedies available at Law or equity, including specific
performance, for such willful breach); provided that if Seller is entitled to and Range does
receive the Deposit on behalf of Seller as liquidated damages pursuant to Section 3.2, then such
retention shall constitute the sole and exclusive remedy of Seller for, and the full and complete
satisfaction of, any and all damages Seller may have against Buyer.

     14.3 Return of Documentation and Confidentiality. Upon termination of this Agreement, Buyer
shall return to Seller all title, engineering, geological and geophysical data, environmental
assessments and/or reports, maps, documents and other information furnished by Seller to Buyer or
prepared by or on behalf of Buyer in connection with its due diligence investigation of the Assets
and an officer of Buyer shall certify same to Seller in writing.

64

 

ARTICLE XV

MISCELLANEOUS

     15.1 Exhibits and Schedules. All of the Exhibits and Schedules referred to in this Agreement
constitute a part of this Agreement. Seller or Buyer and their respective counsel have received a
complete set of Exhibits and Schedules prior to and as of the execution of this Agreement.

     15.2 Expenses and Taxes.

          (a) Except as otherwise specifically provided, all fees, costs and expenses incurred by Seller
or Buyer in negotiating this Agreement or in consummating the transactions contemplated by this
Agreement shall be paid by the Person incurring the same, including, legal and accounting fees,
costs and expenses.

          (b) All required documentary, filing and recording fees and expenses in connection with the
filing and recording of the assignments (including the Assignments), conveyances or other
instruments required to convey title to the Assets to Buyer shall be borne by Buyer. RTP or EAOC,
as applicable, shall assume responsibility for, and shall bear and pay, all Income Tax Liability
incurred or imposed on Seller with respect to the ownership of the RTP Assets or the EAOC Assets,
respectively, through the Closing Date and the transactions described in this Agreement. Buyer
shall assume responsibility for, and shall bear and pay, all state sales and use Taxes and transfer
and similar Taxes (including any applicable interest or penalties) incurred or imposed with respect
to the transactions described in this Agreement (the “Transfer Taxes”). RTP or EAOC, as
applicable, shall assume responsibility for, and shall bear and pay, all Property Taxes assessed
with respect to the ownership and operation of the RTP Assets or the EAOC Assets, respectively, for
(i) any period ending prior to the Effective Time, and (ii) the portion of any Straddle Period
ending immediately prior to the Effective Time. All Property Taxes with respect to the ownership
or operation of the RTP Assets or the EAOC Assets, as applicable, arising on or after the Effective
Time (including all Straddle Period Property Taxes not apportioned to RTP or EAOC, as applicable)
shall be allocated to and borne by Buyer. Upon determination of the actual amount of Property
Taxes, payments will be made to the extent necessary to cause the appropriate Party to bear the
Property Taxes allocable to such Person under this Section 15.2(b). For purposes of allocation
between the Parties of Property Taxes that are payable with respect to Straddle Periods, the
portion of any such Taxes that are attributable to the portion of the Straddle Period that ends
immediately prior to the Effective Time shall (i) in the case of Taxes that are based upon or
related to income or receipts or imposed on a transactional basis, be deemed equal to the amount
that would be payable if the Tax year or period ended immediately prior to the Effective Time; and
(ii) in the case of other Taxes, be allocated pro rata per day between the period immediately prior
to the Effective Time and the period beginning on the Effective Time. For purposes of clause (i)
of the preceding sentence, any exemption, deduction, credit or other item that is calculated on an
annual basis shall be allocated pro rata per day between the period ending immediately prior to the
Effective Time and the period beginning on the Effective Time.

          (c) Seller shall timely file any Tax Return with respect to Property Taxes due on or before
the Closing Date or that otherwise relates solely to periods before the Closing Date

65

 

(a “Pre-Closing Tax Return”) and shall pay any Property Taxes shown due and owing on such
Pre-Closing Property Tax Return, subject to Seller’s right of reimbursement for any Property Taxes
for which Buyer is responsible under Section 15.2(b). Within 15 days prior to filing, Seller shall
deliver to Buyer a draft of any such Pre-Closing Tax Return for Buyer’s review and approval (which
approval will not be unreasonably withheld or delayed).

     15.3 Assignment. This Agreement may not be assigned by Buyer or Seller without the prior
written consent of each Party. In the event the Parties consent to any such assignment, such
assignment shall not relieve the assigning Party of any obligations and responsibilities hereunder.
Any assignment or other transfer by Buyer or its successors and assigns of any of the Assets shall
not relieve Buyer or its successors or assigns of any of their obligations (including indemnity
obligations) hereunder, as to the Assets so assigned or transferred.

     15.4 Preparation of Agreement. Seller, Buyer and their respective counsel participated in the
preparation of this Agreement. In the event of any ambiguity in this Agreement, no presumption
shall arise based on the identity of the draftsman of this Agreement.

     15.5 Publicity.

          (a) Buyer shall not make or issue any press release or other public announcements concerning
the transactions contemplated by this Agreement without the prior consent of Seller, which consent
shall not be unreasonably withheld; provided, however, that Seller has the right to prohibit Buyer
from identifying Seller or its Affiliates by name or stock exchange symbol in the Buyer’s press
release or other statement, which right may be exercised in Seller’s sole and absolute discretion.
If Buyer desires to make a public announcement, it shall first give Seller twenty-four (24) hours
written notification of its desire to make such a public announcement. The written notification
shall include (i) a request for consent to make the announcement, and (ii) a written draft of the
text of such public announcement.

          (b) If Seller desires to make a public announcement, it shall give Buyer prior notification of
its intention to make such a public announcement and, upon request, provide Buyer a draft of any
such announcement.

          (c) Nothing in this Section 15.5 shall prohibit any Party from issuing or making a public
announcement or statement if such Party deems it necessary to do so in order to comply with any
applicable Law or the rules of any stock exchange upon which the
Party’s or a Party’s Affiliate’s
capital stock is traded; provided, however, that to the extent possible, prior written notification
shall be given to the other Parties prior to any such announcement or statement.

     15.6 Notices. All notices and communications required or permitted to be given hereunder
shall be in writing and shall be delivered personally, or sent by bonded overnight courier, or
mailed by U.S. Express Mail or by certified or registered United States Mail with all postage fully
prepaid, , addressed to RTP, Range or Buyer, as appropriate, at the address for such Person shown
below or at such other address as RTP, EAOC, Range or Buyer shall have theretofore designated by
written notice delivered to the other Parties:

66

 

If to Seller:

Range Resources Corporation

Range Texas Production, LLC

Energy Assets Operating Company, LLC

100 Throckmorton Street

Suite 1200

Fort Worth, Texas 76102

Attention: Chad Stephens

If to Buyer:

Legend Natural Gas

410 W Grand Parkway South

Suite 400

Katy, Texas 77494

Attention: Carl Wimberly

     Any notice given in accordance herewith shall be deemed to have been given only when delivered
to the addressee in person, or by courier, during normal business hours on a Business Day (or if
delivered or transmitted after normal business hours on a Business Day or on a day other than a
Business Day, then on the next Business Day), or upon actual receipt by the addressee during normal
business hours on a Business Day after such notice has either been delivered to an overnight
courier or deposited in the United States Mail, as the case may be (or if delivered after normal
business hours on a Business Day or on a day other than a Business Day, then on the next Business
Day). RTP, EAOC, Range or Buyer may change the address to which such communications are to be
addressed by giving written notice to the other Parties in the manner provided in this Section
15.6. If a date specified herein for giving any notice or taking any action is not a Business Day
(or if the period during which any notice is required to be given or any action taken expires on a
date which is not a Business Day), then the date for giving such notice or taking such action (and
the expiration date of such period during which notice is required to be given or action taken)
shall be the next day which is a Business Day.

     15.7 Further Cooperation. After the Closing, Seller and Buyer shall execute and deliver, or
shall cause to be executed and delivered, from time to time such further instruments of conveyance
and transfer, and shall take such other actions as Seller or Buyer may reasonably request, to
convey and deliver the Assets to Buyer, to perfect Buyer’s title thereto and to accomplish the
orderly transfer of the Assets to Buyer in the manner contemplated by this Agreement, including the
sending of notices by Buyer to the counterparties of Leases and Applicable Contracts where the
terms of such Lease or Applicable Contract require such notices to also be executed by Seller in
order to effectuate the transfer such Asset to Buyer. If any Party receives monies belonging to
the other Party or for which such other Party is entitled hereunder or under any Transaction
Document, such amount shall immediately be paid over to the proper Party. If an invoice or other
evidence of an obligation is received by a Party and such obligation is partially an obligation of
both Seller and Buyer, then the Parties shall consult with each other and each Party shall promptly
pay its portion of such obligation or Liability to the obligee.

67

 

     15.8 Filings, Notices and Certain Governmental Approvals. Promptly after the Closing Buyer
shall (a) record all assignments of state Leases executed at the Closing in the records of the
applicable Governmental Authority, (b) if applicable, send notices to vendors supplying goods and
services for the Assets and to the operator of such Assets of the assignment of such Assets to
Buyer, (c) actively pursue the unconditional approval of all applicable Governmental Authorities of
the assignment of the Assets to Buyer and (d) actively pursue all other consents and approvals that
may be required in connection with the assignment of the Assets to Buyer and the assumption of the
Liabilities assumed by Buyer hereunder, that, in each case, shall not have been obtained prior to
the Closing. Buyer obligates itself to take any and all action required by any Governmental
Authority in order to obtain such unconditional approval, including the posting of any and all
bonds or other security that may be required in excess of its existing lease, pipeline or area-wide
bond.

     15.9 Entire Agreement; Conflicts.

          (a) THIS AGREEMENT, THE EXHIBITS AND SCHEDULES HERETO, THE TRANSACTION DOCUMENTS AND THE
CONFIDENTIALITY AGREEMENT COLLECTIVELY CONSTITUTE THE ENTIRE AGREEMENT AMONG SELLER AND BUYER
PERTAINING TO THE SUBJECT MATTER HEREOF AND SUPERSEDE ALL PRIOR AGREEMENTS, UNDERSTANDINGS,
NEGOTIATIONS AND DISCUSSIONS, WHETHER ORAL OR WRITTEN, OF SELLER AND BUYER PERTAINING TO THE
SUBJECT MATTER HEREOF.

          (b) The Parties expressly acknowledge and agree that (i) effective as of the Execution Date
hereof the Confidentiality Agreement shall be hereby amended such that there are no prohibitions or
restrictions on the ability of Buyer to solicit the employment of those field level employees of
Seller or any Affiliate of Seller set forth in Schedule 15.9 and (ii) in the event that the Closing
occurs, the Confidentiality Agreement shall hereby be terminated in its entirety effective as of
the Closing Date.

          (c) THERE ARE NO WARRANTIES, REPRESENTATIONS OR OTHER AGREEMENTS AMONG SELLER AND BUYER
RELATING TO THE SUBJECT MATTER HEREOF EXCEPT AS SPECIFICALLY SET FORTH IN THIS AGREEMENT, AND
NEITHER SELLER NOR BUYER SHALL BE BOUND BY OR LIABLE FOR ANY ALLEGED REPRESENTATION, PROMISE,
INDUCEMENT OR STATEMENTS OF INTENTION NOT SO SET FORTH. IN THE EVENT OF A CONFLICT BETWEEN THE
TERMS AND PROVISIONS OF THIS AGREEMENT AND THE TERMS AND PROVISIONS OF ANY EXHIBIT HERETO, THE
TERMS AND PROVISIONS OF THIS AGREEMENT SHALL GOVERN AND CONTROL; PROVIDED, HOWEVER, THAT THE
INCLUSION IN ANY OF THE EXHIBITS HERETO OF TERMS AND PROVISIONS NOT ADDRESSED IN THIS AGREEMENT
SHALL NOT BE DEEMED A CONFLICT, AND ALL SUCH ADDITIONAL PROVISIONS SHALL BE GIVEN FULL FORCE AND
EFFECT, SUBJECT TO THE PROVISIONS OF THIS SECTION 15.9.

     15.10 Parties in Interest. The terms and provisions of this Agreement shall be binding upon
and inure to the benefit of RTP, EAOC, Range and Buyer and their respective successors and
permitted assigns. Notwithstanding anything contained in this Agreement to the contrary,

68

 

nothing in this Agreement, expressed or implied, is intended to confer on any Person other
than RTP, EAOC, Range, Buyer and their successors and permitted assigns, or the Parties’ respective
related Indemnified Parties hereunder, any rights, remedies, obligations or liabilities under or by
reason of this Agreement; provided that only a Party and its respective successors and permitted
assigns will have the right to enforce the provisions of this Agreement on its own behalf or on
behalf of any of its related Indemnified Parties (but shall not be obligated to do so).

     15.11 Amendment. This Agreement may be amended only by an instrument in writing executed by
the Party against whom enforcement is sought.

     15.12 Waiver; Rights Cumulative. Any of the terms, covenants, representations, warranties or
conditions hereof may be waived only by a written instrument executed by or on behalf of the Party
waiving compliance. No course of dealing on the part of Seller or Buyer, or their respective
officers, employees, agents or representatives or any failure by Seller or Buyer to exercise any of
its rights under this Agreement shall operate as a waiver thereof or affect in any way the right of
such Person at a later time to enforce the performance of such provision. No waiver by Seller or
Buyer of any condition or any breach of any term, covenant, representation or warranty contained in
this Agreement, in any one or more instances, shall be deemed to be or construed as a further or
continuing waiver of any such condition or breach or a waiver of any other condition or of any
breach of any other term, covenant, representation or warranty. The rights of Seller and Buyer
under this Agreement shall be cumulative, and the exercise or partial exercise of any such right
shall not preclude the exercise of any other right.

     15.13 Conflict of Law Jurisdiction, Venue; Jury Waiver. THIS AGREEMENT AND THE LEGAL
RELATIONS AMONG SELLER AND BUYER SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE
STATE OF TEXAS, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT WOULD REQUIRE THE APPLICATION
OF ANY OTHER LAW. EACH OF RTP, EAOC, RANGE AND BUYER CONSENT TO THE EXERCISE OF JURISDICTION IN
PERSONAM BY THE COURTS OF THE STATE OF TEXAS FOR ANY ACTION ARISING OUT OF THIS AGREEMENT, THE
OTHER TRANSACTION DOCUMENTS OR THE TRANSACTIONS CONTEMPLATED HEREBY. ALL ACTIONS OR PROCEEDINGS
WITH RESPECT TO, ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF, RELATED TO OR FROM THIS
AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS SHALL BE EXCLUSIVELY LITIGATED IN COURTS HAVING SITES
IN FORT WORTH, TARRANT COUNTY, TEXAS OR HOUSTON, HARRIS COUNTY, TEXAS. EACH OF RTP, EAOC, RANGE
AND BUYER WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
AGREEMENT.

     15.14 Severability. If any term or other provision of this Agreement is invalid, illegal or
incapable of being enforced by any rule of Law or public policy, all other conditions and
provisions of this Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated hereby is not affected in any adverse
manner to any of Seller or Buyer. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Parties shall negotiate in good

69

 

faith to modify this Agreement so as to effect the original intent of the Parties as closely
as possible in an acceptable manner to the end that the transactions contemplated hereby are
fulfilled to the extent possible.

     15.15 Removal of Name. As promptly as practicable, but in any case within 30 days after the
Closing Date, Buyer shall eliminate the names “Range Texas Production, LLC”, “Energy Assets
Operating Company, LLC”, “Range Resources Corporation”, “Range Resources” and any variants thereof
from the Assets acquired pursuant to this Agreement and, except with respect to such grace period
for eliminating existing usage, shall have no right to use any logos, trademarks or trade names
belonging to Seller or any of its Affiliates.

     15.16 Counterparts. This Agreement may be executed in any number of counterparts, and each
such counterpart hereof shall be deemed to be an original instrument, but all of such counterparts
shall constitute for all purposes one agreement. Any signature hereto delivered by a Party by
facsimile transmission shall be deemed an original signature hereto.

     15.17 Confidentiality. If Closing occurs, for a period of one year following the Closing
Date, Seller shall keep, and shall cause its Affiliates and its and their respective members,
managers, officers, employees, agents and representatives to keep, to the extent permitted by Law,
confidential the Records and all information disclosed to Seller by Buyer pursuant to Section
10.1(e) or the Transition Services Agreement (collectively, the “Confidential Information”), except
for (a) such Confidential Information (i) that becomes, through no violation of the provisions of
this Section 15.17 by Seller or its Affiliates or its and their respective members, managers,
officers, employees, agents and representatives, part of the public domain by publication or
otherwise, (ii) which is obtained by Seller or its Affiliates from a source that is not known to it
to be prohibited from disclosing such Confidential Information to Seller or its Affiliates by an
obligation of confidentiality to Buyer, or (iii) which is developed independently by Seller or its
Affiliates without use of the Confidential Information or (b) disclosures of Confidential
Information (i) in the course of any trial or other legal proceeding involving Seller or its
Affiliates, or (ii) as required by any applicable securities Law or other Law (including any
subpoena, interrogatory, or other similar requirement for such information to be disclosed) or the
rules of any applicable national stock exchange. In any such circumstance outlined in clause (b)
above, Seller will promptly give Buyer written notice of such required disclosure and disclose only
that portion of the Confidential Information as Seller is advised by counsel that it is reasonably
required to disclose and will exercise its commercially reasonable efforts to obtain reliable
assurance that confidential treatment will be accorded such Confidential Information.

     15.18 Relationship of Range, EAOC and RTC. Seller agrees and acknowledges that each of Range,
EAOC and RTC shall be jointly and severally liable for the obligations of each Seller under this
Agreement.

[Signature page follows.]

70

 

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

	 	 	 	 	 
	 	SELLER:

RANGE TEXAS PRODUCTION, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Chad L. Stephens 	 
	 	 	Title:  	Sr. Vice President — Corporate Development 	 
	 
	 	ENERGY ASSETS OPERATING COMPANY, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Chad L. Stephens 	 
	 	 	Title:  	Sr. Vice President — Corporate Development 	 
	 
	 	RANGE RESOURCES CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	Chad L. Stephens 	 
	 	 	Title:  	Sr. Vice President — Corporate Development 	 
	 
	 	BUYER:

LEGEND NATURAL GAS IV, LP

 	 
	 	By:  	 	 
	 	 	Name:  	Carl Wimberley 	 
	 	 	Title:  	Vice President and General Counsel 	 
	 

[Signature Page to Purchase and Sale Agreement]

71exv4w1

Exhibit 4.1

     This Security is in global form within the meaning of the Senior Debt Securities
Indenture hereinafter referred to and is registered in the name of The Depository Trust Company, a
New York corporation (“DTC”), or a nominee of DTC, which may be treated by the Issuer, the
Guarantor, the Trustee and any agent thereof as owner and holder of this Security for all purposes.

     Unless this certificate is presented by an authorized representative of DTC to the Issuer or
its agent for registration of transfer, exchange or payment, and any certificate issued is
registered in the name of Cede & Co. or in such other name as is requested by an authorized
representative of DTC (and any payment is made to Cede & Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR
VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &
Co., has an interest herein.

     Unless and until it is exchanged in whole or in part for Securities in definitive form in the
limited circumstances referred to in the Senior Debt Securities Indenture, this global Security may
not be transferred except as a whole by DTC to a nominee of DTC or by a nominee of DTC to DTC or
another nominee of DTC or by DTC or any such nominee to a successor depositary or a nominee of such
successor depositary.

			
	 	 	 
	Registered No. [     ]
	 	Principal Amount: $[     ]
	CUSIP: [     ]

ISIN: [     ]	 	 

ABBEY NATIONAL TREASURY SERVICES PLC

[     ]% Notes due [     ]

Fully, Unconditionally and Irrevocably Guaranteed by

SANTANDER UK PLC

     Abbey National Treasury Services plc, a public limited company incorporated in England and
Wales (hereinafter called the “Issuer,” which term shall include any successor entity under
the Senior Debt Securities Indenture), for value received, hereby promises to pay to Cede & Co., as
nominee for DTC, or registered assigns, upon presentation, the principal sum of [     ] ($[     ]) on
[     ] (the “Maturity Date”) and to pay interest thereon from [     ], or from the most
recent interest payment date to which interest has been paid or duly provided for, semi-annually in
arrears on [     ] and [     ] in each year, and on the Maturity Date (each, an “Interest Payment
Date”), commencing on [     ], at the rate of [     ]% per annum, until the entire principal
hereof is paid or made available for payment.

     The interest so payable, and punctually paid or duly provided for on any Interest Payment Date
will, as provided in the Senior Debt Securities Indenture, be paid to the Person in whose name this
Security is registered at the close of business on the Regular Record Date for such interest, which
shall be the fifteenth calendar day (whether or not a Business Day) preceding the

 

 

related Interest Payment Date. Any such interest not so punctually paid or duly provided for
shall forthwith cease to be payable to the Holder on such Regular Record Date, and may either be
paid to the Person in whose name this Security is registered at the close of business on a Special
Record Date for the payment of Defaulted Interest to be fixed by the Issuer, or may be paid at any
time in any other lawful manner not inconsistent with the requirements of any securities exchange
on which the Securities may be listed, and upon such notice as may be required by such exchange,
all as more fully provided in the Senior Debt Securities Indenture.

     Payment of the principal of and interest on and any Additional Amounts in respect of this
global Security will be paid to DTC for the purpose of permitting DTC to credit the principal and
interest received by it in respect of this global Security to the accounts of the beneficial owners
thereof; provided, however, that if this Security is not a global Security, payment
of the principal of, interest on and Additional Amounts, if any, in respect of this Security will
be made at the office or agency of the Trustee in The City of New York, or elsewhere as provided in
the Senior Debt Securities Indenture, in such coin or currency of the United States of America as
at the time of payment is legal tender for payment of public and private debts; and
provided, further, that at the option of the Issuer payment of interest may be made
by (a) check mailed to the address of the Person entitled thereto as such address shall appear in
the Security Register or (b) transfer to an account of the Person entitled thereto located inside
the United States.

     If an Interest Payment Date or redemption, or the Maturity Date, as the case may be, would
fall on a day that is not a Business Day, then the Interest Payment Date or redemption date, or the
Maturity Date, as the case may be, will be postponed to the next succeeding Business Day, but no
additional interest shall be paid unless the Issuer fails to make payment on such next succeeding
Business Day.

     A “Business Day” is any day, other than a Saturday or Sunday, that is neither a legal
holiday nor a day on which banking institutions in the City of New York or London, England are
authorized or required by law, regulation or executive order to close.

     Additional provisions of this Security are set forth following the signature page hereof,
which provisions shall for all purposes have the same effect as if set forth at this place.

     Unless the certificate of authentication hereon has been executed by or on behalf of the
Trustee referred to on the reverse hereof by manual signature, this Security shall not be entitled
to any benefit under the Senior Debt Securities Indenture or be valid or obligatory for any
purpose.

2

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be duly executed this [     ]th
day of [     ].

	 	 	 	 	 
	 	ABBEY NATIONAL TREASURY SERVICES PLC

 	 
	 	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

CERTIFICATE OF AUTHENTICATION

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

Dated:

THE BANK OF NEW YORK MELLON,

as Trustee

	 	 	 	 	 

	By:
	 	 	 	 
	 

	 	 

Authorized Signatory
	 	 

3

 

GUARANTEE

OF

SANTANDER UK PLC

     For value received, Santander UK plc, a public limited company incorporated under the laws of
England and Wales (the “Guarantor,” which term includes any Person as a successor Guarantor under
the Senior Debt Securities Indenture referred to in the Security upon which this Guarantee is
endorsed), hereby unconditionally and irrevocably guarantees to the Holder of the Security upon
which this Guarantee is endorsed the due and punctual payment of the principal of, any premium and
interest on, and any Additional Amounts with respect to such Security, when and as the same shall
become due and payable, whether at maturity, by acceleration, redemption, repayment or otherwise,
in accordance with the terms of such Security and of the Senior Debt Securities Indenture. In case
of the failure of Abbey National Treasury Services plc, a public limited company incorporated in
England and Wales (the “Issuer,” which term shall include any successor entity under the
Senior Debt Securities Indenture), to punctually pay any such principal, premium, interest or
Additional Amounts, the Guarantor hereby agrees to cause any such payment to be made punctually
when and as the same shall become due and payable, whether at maturity, upon acceleration,
redemption, repayment or otherwise, and as if such payment were made by the Issuer.

     The indebtedness evidenced by this Guarantee is ranked equally and pari passu with all other
unsecured and unsubordinated indebtedness of the Guarantor.

     All payments of principal of and premium, if any, interest and any other amounts on, or in
respect of, such Security shall be made by the Guarantor without withholding or deduction at source
for, or on account of, any present or future income, stamp and other Taxes now or hereinafter
imposed or levied, collected, withheld or assessed by or on behalf of the United Kingdom, or the
jurisdiction of residence or incorporation of the Guarantor, or any political subdivision or taxing
authority thereof or therein (the “Guarantor Taxing Jurisdiction”), unless such taxes,
fees, duties, assessments or governmental charges are required to be withheld or deducted by law.
If a withholding or deduction at source is required, the Guarantor shall, subject to the same
limitations and exceptions set forth in the Senior Debt Securities Indenture, pay to the Holder of
such Senior Debt Security such Additional Amounts as may be necessary so that every net payment of
principal, premium, if any, interest or any other amount made to such Holder, after such
withholding or deduction, shall not be less than the amount provided for in such Security and the
Senior Debt Securities Indenture to be then due and payable.

     The Guarantor hereby agrees that its obligations hereunder shall be as principal and not
merely as surety, and shall be absolute, irrevocable and unconditional, irrespective of, and shall
be unaffected by, any invalidity, irregularity or unenforceability of such Security or the Senior
Debt Securities Indenture, any failure to enforce the provisions of such Security or the Senior
Debt Securities Indenture, or any waiver, modification, consent or indulgence granted with respect
thereto by the Holder of such Security or the Trustee, the recovery of any judgment against the
Issuer or any action to enforce the same, or any other circumstances which may otherwise constitute
a legal or equitable discharge of a surety or guarantor. The Guarantor

4

 

hereby waives diligence, presentment, demand of payment, filing of claims with a court in the
event of merger, insolvency or bankruptcy of the Issuer, any right to require a proceeding first
against the Issuer, protest or notice with respect to any such Security or the indebtedness
evidenced thereby and all demands whatsoever, and covenants that this Guarantee will not be
discharged except by payment in full of the principal of, any premium and interest on, and any
Additional Amounts with respect to, the Senior Debt Securities and the complete performance of all
other obligations contained in such Security. The Guarantor further agrees, to the fullest extent
that it lawfully may do so, that, as between the Guarantor, on the one hand, and the Holders and
the Trustee, on the other hand, the maturity of the obligations guaranteed hereby may be
accelerated as provided in the Senior Debt Securities Indenture for the purposes of this Guarantee,
notwithstanding any stay, injunction or prohibition extant under any bankruptcy, insolvency,
reorganization or other similar law of any jurisdiction preventing such acceleration in respect of
the obligations guaranteed hereby.

     This Guarantee shall continue to be effective or be reinstated, as the case may be, if at any
time payment on such Security, in whole or in part, is rescinded or must otherwise be restored to
the Issuer or the Guarantor upon the bankruptcy, liquidation or reorganization of the Issuer or
otherwise.

     The Guarantor shall be subrogated to all rights of the Holder of such Security against the
Issuer in respect of any amounts paid to such Holder by the Guarantor pursuant to the provisions of
this Guarantee; provided, however, that the Guarantor shall not be entitled to enforce, or to
receive any payments arising out of or based upon, such right of subrogation until the principal
of, any premium and interest on, and any Additional Amounts with respect to, such Security shall
have been paid in full.

     As a separate and alternative stipulation, the Guarantor unconditionally and irrevocably
agrees that any sum expressed to be payable by the Issuer under the Senior Debt Securities
Indenture or such Security but which is for any reason (whether or not now known or becoming known
to the Issuer, the Guarantor, the Trustee or any Holder of such Security) not recoverable from the
Guarantor on the basis of a Guarantee will nevertheless be recoverable from it as if it were the
sole principal debtor and will be paid by it to the Trustee on demand. This indemnity constitutes
a separate and independent obligation from the other obligations in the Senior Debt Securities
Indenture, gives rise to a separate and independent cause of action and will apply irrespective of
any indulgence granted by the Trustee or any Holder of such Security.

     The Guarantor may, without the consent of the Holders, assume all of the rights and
obligations of the Issuer under the Senior Debt Securities Indenture with respect to such Security
and under such Security if, after giving effect to such assumption, no Event of Default or event
which with the giving of notice or lapse of time, or both, would become an Event of Default, shall
have occurred and be continuing. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Issuer
and the Issuer shall be released from its liabilities under the Senior Debt Securities Indenture
and under such Security as obligor on such Security. The Guarantor shall assume all of the rights
and obligations of the Issuer under the Senior Debt Securities Indenture with respect to such
Security and under such Security if, upon a default by the Issuer in the due and punctual payment
of the principal, premium, if any, or interest on such Security, the Guarantor is prevented by any

5

 

court order or judicial proceeding from fulfilling its obligations under Section 12.01 of the
Senior Debt Securities Indenture with respect to such Security. Such assumption shall result in
such Security becoming the direct obligations of the Guarantor and shall be effected without the
consent of the Holders of such Security. Upon such an assumption, the Guarantor shall execute a
supplemental indenture evidencing its assumption of all such rights and obligations of the Issuer,
and the Issuer shall be released from its liabilities hereunder and under such Security as obligor
on such Security.

     No reference herein to such Senior Debt Securities Indenture and no provision of such Senior
Debt Securities Indenture shall alter or impair the guarantees of the Guarantor, which are absolute
and unconditional, of the due and punctual payment of the principal of, interest on and Additional
Amounts payable in respect of the Security upon which this Guarantee is endorsed.

     This Guarantee shall not be valid or obligatory for any purpose until the certificate of
authentication of such Security shall have been executed by manual or facsimile signature by or on
behalf of the Trustee under such Senior Debt Securities Indenture.

     All terms used in this Guarantee that are defined in such Senior Debt Securities Indenture
shall have the meanings assigned to them in such Senior Debt Securities Indenture.

     This Guarantee shall be governed by and construed in accordance with the laws of the State of
New York.

     IN WITNESS WHEREOF, the Guarantor has caused this Guarantee to be duly executed this [     ]th
day of [     ].

	 	 	 	 	 
	 	SANTANDER UK PLC,

as the Guarantor

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

6

 

	 	 	 	 	 

[     ]% Notes due [     ]

     This Security is one or all of a duly authorized issue of securities of the Issuer (herein
called the “Securities”), initially limited in aggregate principal amount to $[     ],
issued and to be issued in one or more series under an Indenture, dated as of April 27, 2011
(herein called the “Senior Debt Securities Indenture”), among the Issuer, Santander UK plc,
as Guarantor (the “Guarantor”) and The Bank of New York Mellon, as trustee (herein called
the “Trustee”, which term includes any successor trustee under the Senior Debt Securities
Indenture), to which Senior Debt Securities Indenture and all indentures supplemental thereto
reference is hereby made for a statement of the respective rights, limitation of rights, duties and
immunities thereunder of the Issuer, the Guarantor, the Trustee and the Holders of the Securities
and of the terms upon which the Securities are, and are to be, authenticated and delivered. This
Security is one or all of the series designated as the “[     ]% Notes due [     ].”

     As provided in and subject to the provisions of the Senior Debt Securities Indenture, the
Issuer and, if applicable, the Guarantor will have the option to redeem the Securities in whole on
any Interest Payment Date, at a redemption price equal to 100% of the principal amount, together
with accrued but unpaid interest, if any, in respect of the Securities to the date fixed for
redemption (or, in the case of Original Issue Discount Securities, the accreted face amount
thereof, together with accrued interest, if any), if, at any time, the Issuer (or, if applicable,
the Guarantor) shall determine that as a result of a change in or amendment to the laws or
regulations of the Taxing Jurisdiction (including any treaty to which such Taxing Jurisdiction is a
party), or, based upon a written legal opinion of independent United Kingdom counsel of recognized
standing as set forth in the Senior Debt Securities Indenture, any change in the official
application or interpretation of such laws or regulations (including a decision of any court or
tribunal) which change or amendment becomes effective on or after a date included in the terms of
such Securities:

     (a) in making payment under the Securities in respect of principal or premium, if any, or
interest, if any, it (or the Guarantor, if applicable) has or will or would on the next Interest
Payment Date become obligated to pay Additional Amounts;

     (b) any payment of Interest on an Interest Payment Date in respect of the Securities has been
treated as a “distribution”, or the payment of interest on the next Interest Payment Date in
respect of any of the Securities would be treated as a “distribution,” in each case within the
meaning of Section 1000 of the Corporation Tax Act 2010 of the United Kingdom (or any statutory
modification or re-enactment thereof for the time being); or

     (c) on an Interest Payment Date the Issuer (or the Guarantor, if applicable) was not entitled,
or on the next Interest Payment Date the Issuer (or the Guarantor, if applicable) would not be
entitled, to claim a deduction in respect of such payment of interest in computing its United
Kingdom taxation liabilities (or the value of such deduction to the Issuer would be materially
reduced).

     In the event of a redemption as described in the paragraphs above, notice of such redemption
to the Holders of Securities of any series to be redeemed in whole but not in part at

7

 

the option of the Issuer shall be given by mailing notice of such redemption by first class
mail, postage prepaid, at least 30 days and not more than 60 days prior to the date fixed for
redemption to such Holders of Securities of such series at their last addresses as they shall
appear upon the Security Register of the Issuer.

     The Senior Debt Securities Indenture contains provisions for satisfaction and discharge of the
Senior Debt Securities Indenture applicable to the Issuer and the Guarantor, in each case, upon
compliance by the Issuer and the Guarantor with certain conditions set forth in the Senior Debt
Securities Indenture, which provisions apply to this Security.

     If an Event of Default with respect to the Securities of this series shall occur and be
continuing, the principal of the Securities of this series may be declared due and payable in the
manner and with the effect provided in the Senior Debt Securities Indenture.

     As provided in and subject to the provisions of the Senior Debt Securities Indenture, the
Holder of this Security shall not have the right to institute any proceeding with respect to the
Senior Debt Securities Indenture or for the appointment of an administrator, receiver or trustee or
for any other remedy thereunder, unless such Holder has previously given written notice to the
Trustee of a continuing Event of Default with respect to such Security specifying such Event of
Default and stating that such notice is a “Notice of Default” under the Senior Debt Securities
Indenture; the Holders of not less than 25% in aggregate principal amount of such Security shall
have made written request to the Trustee to institute proceedings in respect of such Event of
Default in its own name, as Trustee hereunder; such Holders have offered to the Trustee reasonable
indemnity or security satisfactory to it against the costs, expenses and liabilities to be incurred
in compliance with such request; the Trustee for 60 days after its receipt of such notice, request
and offer of indemnity or security has failed to institute any such proceeding; and no direction
inconsistent with such written request has been given to the Trustee during such 60-day period by
the Holders of a majority in principal amount of such Security. The foregoing shall not apply to
any suit instituted by the Holder of this Security for the enforcement of any payment of principal
hereof or interest hereon on or after the respective due dates expressed herein.

     The Senior Debt Securities Indenture permits, with certain exceptions as therein provided, the
amendment thereof and the modification of the rights and obligations of the Issuer and the
Guarantor and the rights of the Holders of the Securities under the Senior Debt Securities
Indenture at any time by the Issuer, the Guarantor and the Trustee with the consent of the Holders
of not less than a majority in principal amount of the outstanding Securities affected by such
amendment. The Senior Debt Securities Indenture also contains provisions permitting the Holders of
specified percentages in principal amount of the Securities at the time outstanding, on behalf of
the Holders of all Securities, to waive compliance by the Issuer or the Guarantor, or both, with
certain provisions of the Senior Debt Securities Indenture and certain past defaults under the
Senior Debt Securities Indenture and their consequences. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all future Holders of
this Security and of any Security issued upon the registration of transfer hereof or in exchange
herefor or in lieu hereof, whether or not notation of such consent or waiver is made upon this
Security.

8

 

     No reference herein to the Senior Debt Securities Indenture and no provision of this Security
or of the Senior Debt Securities Indenture shall alter or impair the obligation of the Issuer,
which is absolute and unconditional, to pay the principal of and interest on this Security at the
times, place and rate, and in the coin or currency, herein prescribed.

     The Issuer may, from time to time, without the consent of the Holders of the Security, issue
additional Securities of this series, guaranteed by the Guarantor, having the same ranking and same
interest rate, Stated Maturity, redemption terms and other terms, except for the price to the
public and issue date and first Interest Payment Date, as this Security; provided, however, that
such additional Securities must be either treated as part of the same issue of debt instruments for
U.S. federal income tax purposes or be issued with an issue price that is no less than the adjusted
issue price of this Security at the time of issuance of such additional Securities for U.S. federal
income tax purposes. Any such additional Securities, together with this Security, will constitute
a single series of Senior Debt Securities under the Senior Debt Securities Indenture.

     As provided in the Senior Debt Securities Indenture and subject to certain limitations therein
set forth, the transfer of this Security is registrable in the Senior Debt Security Register, upon
surrender of this Security for registration of transfer at the office or agency of the Issuer in
any place of payment where the principal of and interest on this Security are payable, duly
endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Issuer
and the Senior Debt Security Registrar duly executed by the registered Holder hereof or his
attorney duly authorized in writing, and thereupon one or more new Securities of this series, of
authorized denominations containing identical terms and provisions, of a like aggregate principal
amount, will be issued to the designated transferee or transferees.

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

     No service charge shall be made for any such registration of transfer or exchange, but,
subject to certain exceptions set forth in the Senior Debt Securities Indenture, the Issuer may
require payment of a sum sufficient to cover any tax or other governmental charge payable in
connection therewith.

     Prior to due presentment of this Security for registration of transfer, the Issuer, the
Guarantor, the Trustee and any agent of the Issuer, the Guarantor or the Trustee may treat the
Person in whose name this Security is registered as the owner hereof for all purposes, whether or
not this Security be overdue, and none of the Issuer, the Guarantor, the Trustee or any such agent
shall be affected by notice to the contrary.

     The obligations of the Issuer and the Guarantor under the Senior Debt Securities Indenture and
this Security and all documents delivered in the name of the Issuer or the Guarantor, as the case
may be, in connection herewith and therewith do not and shall not constitute personal obligations
of the directors, officers, employees, agents or shareholders of the Issuer or the Guarantor or any
of them, and shall not involve any claim against or personal

9

 

liability on the part of any of them, and all persons including the Trustee shall look solely
to the assets of the Issuer and the Guarantor for the payment of any claim thereunder or for the
performance thereof and shall not seek recourse against such directors, officers, employees, agents
or shareholders of the Issuer or the Guarantor or any of them or any of their personal assets for
such satisfaction. The performance of the obligations of the Issuer and the Guarantor under the
Senior Debt Securities Indenture and this Security and all documents delivered in the name of the
Issuer or the Guarantor, as the case may be, in connection therewith shall not be deemed a waiver
of any rights or powers of the Issuer or the Guarantor or their respective directors or
shareholders under the Issuer’s or the Guarantor’s respective Memorandum and Articles of
Association.

     All terms used in this Security that are defined in the Senior Debt Securities Indenture shall
have the meanings assigned to them in the Senior Debt Securities Indenture.

     The Senior Debt Securities Indenture and the Securities, including this Security, shall be
governed by and construed in accordance with the law of the State of New York.

     Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Issuer has caused “CUSIP” numbers to be printed on the Securities as a convenience
to the Holders of the Securities. No representation is made as to the correctness or accuracy of
such CUSIP numbers as printed on the Securities, and reliance may be placed only on the other
identification numbers printed hereon.

10

 

ASSIGNMENT FORM

FOR VALUE RECEIVED, the undersigned hereby

sells, assigns and transfers unto

PLEASE INSERT SOCIAL

SECURITY OR OTHER IDENTIFYING

NUMBER OF ASSIGNEE

      

 

(Please Print or Typewrite Name and Address, including Zip Code, of Assignee)

 

the within Security of the company and                      hereby does irrevocably
constitute and appoint

 

attorney to transfer said Security on the books of the within-named company with full power of
substitution in the premises.

Dated:

 

Signature

 

NOTICE: The signature to this assignment must correspond with the name as it appears on the first
page of the within Security in every particular, without alteration or enlargement or any change
whatever.

Signature Guaranteed:

 

NOTICE: Signature(s) must be guaranteed by an “eligible guarantor institution” that is a member or
participant in a “signature guarantee program” (e.g., the Securities Transfer Agents Medallion
Program, the Stock Exchange Medallion Program and the New York Stock Exchange Medallion Program).

11

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00188-of-00352.parquet"}]]