Document:

Form of Purchase Agreement

 Exhibit 10.1 

GMX RESOURCES INC. 
 11.00% SENIOR SECURED NOTES DUE 2017 
 FORM OF PURCHASE AGREEMENT 
 December 19, 2011 

The Purchaser named on the signature page hereto 
 Located at the address specified on the signature page hereto 
 Ladies and Gentlemen:

 GMX Resources Inc., an Oklahoma corporation (the “Company”) proposes, upon the terms and conditions
set forth in this agreement (this “Agreement”), to issue and sell to the purchaser named herein (the “Purchaser”), the aggregate principal amount of its 11.00% Senior Secured Notes due 2017 (the
“Purchased Notes”) that is indicated on the signature page of the Purchaser hereto. The purchase of the Notes hereunder is to be made in connection with a Support Agreement, dated as of November 2, 2011 between the
Company and the Purchaser (the “Support Agreement”) and a related exchange of certain newly issued 11.00% Senior Secured Notes due 2017 (the “Exchange Notes”, and together with the Purchased Notes, the
“Notes”) for the Purchaser’s existing holdings of the Company’s 2019 Senior Notes due 2019 (the “Original Notes”). The Notes (i) are to be issued pursuant to an Indenture (the
“Indenture”), to be dated of even date herewith and entered into among the Company, the Guarantors (as defined below) party thereto and U.S. Bank National Association, a national banking association, as trustee and collateral
agent (in such capacity, the “Trustee”). The Company’s obligations under the Notes, including the due and punctual payment of interest on the Notes, will be irrevocably and unconditionally guaranteed (the
“Note Guarantees”) by the Restricted Subsidiaries of the Company who will agree to be guarantors under the Indenture (the “Guarantors”), pursuant to a Notation of Guarantee, each to be dated of even
date herewith, by the Guarantors (the “Notation of Guarantee”). As used herein, the term “Notes” shall include the Note Guarantees, unless the context otherwise requires. This Agreement is to confirm the agreement
concerning the purchase of the Purchased Notes from the Company by the Purchaser. The obligations of the Company and the Guarantors under the Indenture and the Notes will be governed by a Security Agreement dated the date hereof between the Company
and the Collateral Agent (the “Security Agreement”) and certain other security agreements and mortgages by and between the Company or the Guarantors, as applicable, and the Collateral Agent, of even date herewith or to be
executed promptly and in any event within 30 days hereof (the “Security Documents”). The Notes will be subject to Registration Rights Agreements (the “Registration Rights Agreements”) among the
Company, the Guarantors and certain other purchasers of the Notes, of even date herewith. 

 Collectively, the following are referred to herein as the “Transaction
Documents”: (i) this Agreement and the other purchase agreements relating to the issuance and sale of the Purchased Notes pursuant to the Support Agreement and the other support agreements (collectively, the
“NPAs”), (ii) the Indenture, (iii) the Notes and the associated Note Guarantees, (iv) the Registration Rights Agreements and (iv) the Security Documents. Collectively, the transactions contemplated by the
Transaction Documents (including, without limitation, the use of proceeds therefrom) are referred to herein as the “Transactions”. 
 1. Purchase of the Purchased Notes. The Company and the Guarantors jointly and severally hereby agree, on the basis of the representations, warranties, covenants and agreements of the Purchaser
contained herein and subject to all the terms and conditions set forth herein, to issue and sell to the Purchaser and, upon the basis of the representations, warranties and agreements of the Company and the Guarantors herein contained and subject to
all the terms and conditions set forth herein, the Purchaser agrees, to purchase from the Company the aggregate principal amount of Purchased Notes that is indicated on the signature page hereto for a price in cash equal to the amount of cash
indicated on the Company’s and the Guarantors’ signature page hereto, which is equal to 100.000% of the aggregate principal amount of such Purchased Notes. 
 2. Payment for and Delivery of the Purchased Notes. Subject to the satisfaction or waiver of the conditions set forth in Section 6 below, the closing (the “Closing”) of
the purchase and sale of the Purchased Notes shall occur at 9:00 a.m., New York City time, on the date hereof. The Closing will be held at the offices of Paul, Weiss, Rifkind, Wharton & Garrison LLP, New York, New York, or at such other
location as the Company and the Purchaser may otherwise agree. The date hereof is referred to herein as the “Closing Date.” 
 The Purchased Notes will be delivered to the Purchaser, or the Trustee as custodian for The Depository Trust Company (“DTC”), against payment by or on behalf of the Purchaser of
the purchase price therefor by wire transfer in immediately available funds, by causing DTC to credit the Purchased Notes to the account of the Purchaser at DTC designated in Annex 1 hereto. The Purchased Notes will be evidenced by one or
more global securities in definitive form and will be registered in the name of Cede & Co. as nominee of DTC. 
 3.
Representations, Warranties and Agreements of the Company and the Guarantors. Each of the Company and the Guarantors, jointly and severally, represent, warrant and agree, on and as of the date hereof, as follows: 

(a) The Offering Memorandum and Consent Solicitation Statement, dated November 15, 2011, as supplemented by
Supplement No. 1 thereto (collectively, and together with the documents incorporated by reference therein, the “Offering Memorandum”), together with the form of Indenture attached hereto as Exhibit I, the forms of
Security Documents attached hereto as Exhibit II, the form of Intercreditor Agreement attached hereto as Exhibit III and the form of Registration Rights Agreements attached hereto as Exhibit IV, (collectively, the
“Disclosure Package”), contains all the information specified in, and meeting the requirements of, Rule 144A(d)(4) under the Securities Act of 1933 (the “Securities Act”). 

(b) The Notes and Note Guarantees are not of the same class (within the meaning of Rule 144A(d)(3) under the Securities
Act) as securities of the Company or the Guarantors that are listed on a national securities exchange registered under Section 6 of the Securities Exchange Act of 1934 (the “Exchange Act”) or that are quoted in a United
States automated inter-dealer quotation system. 

  
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 (c) None of the Company or the Guarantors is, and after giving effect to the
Transactions, none will be, an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act and the rules and regulations of the Commission thereunder.

 (d) The offer and sale of the Purchased Notes pursuant hereto, and of the Exchange Notes pursuant to the
Offering Memorandum (the “Exchange Offer”), are exempt from the registration requirements of the Securities Act. No form of general solicitation or general advertising within the meaning of Regulation D under the Securities
Act (including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, or any seminar or meeting whose attendees have been invited
by any general solicitation or general advertising) was used by the Company or the Guarantors, any of their respective Affiliates or any of their representatives in connection with the offer and sale of the Notes. 

(e) No directed selling efforts within the meaning of Rule 902 under the Securities Act were used by the Company, the
Guarantors or any of their respective representatives with respect to Notes sold outside the United States to non-U.S. persons, and the Company and the Guarantors and any of their respective Affiliates and any person acting on their behalf has
complied with and will implement the “offering restrictions” required by Rule 902 under the Securities Act. 
 (f) The Disclosure Package has been prepared by the Company and the Guarantors for use in connection with the issuance of the Notes and the Exchange Offer. No other materials have been prepared by the
Company or the other Guarantors for use in connection with the issuance of the Notes. No order or decree preventing the use of the Disclosure Package, or any order asserting that the Transactions are subject to the registration requirements of the
Securities Act has been issued, and no proceeding for that purpose has commenced or is pending or, to the knowledge of the Company or the Guarantors, is contemplated. 

(g) As of the date hereof, the Disclosure Package does not contain an untrue statement of a material fact or omit to state
a material fact necessary in order to make the statements made therein, in the light of the circumstances under which they were made, not misleading. 
 (h) The statistical and market-related data included in or incorporated by reference into the Disclosure Package are based on or derived from sources that the Company and the Guarantors believe to be
reliable in all material respects. 
 (i) Each of the Company and the Guarantors and their respective
subsidiaries has been duly organized, is validly existing and in good standing as a corporation or limited liability company, as applicable, under the laws of its jurisdiction of organization and is duly qualified to do business and in good standing
as a corporation or limited liability 

  
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company, as applicable, in each jurisdiction in which its ownership or lease of property or the conduct of its businesses requires such qualification, except where the failure to be so qualified
or in good standing would not, in the aggregate, reasonably be expected to have (i) a material adverse effect on the condition (financial or otherwise), results of operations, stockholders’ equity, properties, business or prospects of the
Company and the Guarantors, taken as a whole or (ii) a material adverse effect on the performance by the Company and the Guarantors of this Agreement or any of the Transaction Documents (as defined below) or the consummation of any of the
transactions contemplated hereby or thereby (the events described in clauses (i) and (ii), collectively, a “Purchase Agreement Material Adverse Effect”); each of the Company, the Guarantors and their respective
subsidiaries has all power and authority necessary to own or hold its properties and to conduct the businesses in which it is engaged. The Company and the Guarantors do not own or control, directly or indirectly, any corporation, association or
other entity other than the subsidiaries listed on Exhibit V hereto. None of the subsidiaries of the Company or any of the Guarantors (other than as identified as such in Exhibit V) is a “significant subsidiary” (as defined
in Rule 405 under the Securities Act). 
 (j) The Company has the authorized capitalization as set forth in the
Disclosure Package, and all of the issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non-assessable. 

(k) The equity interests of the Guarantors constitute all the issued and outstanding shares of all classes of the capital
stock of the Guarantors owned by the Company. All equity interests of the Guarantors are owned of record by the Company and have been duly and validly issued and are fully paid and nonassessable. 

(l) Each of the Company and the Guarantors has all requisite corporate power and authority to execute, deliver and perform
its obligations under the Indenture. The Indenture has been duly and validly authorized by each of the Company and the Guarantors and, upon its execution and delivery by all of the parties thereto, will constitute the valid and binding agreement of
each of the Company and the Guarantors, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, and other laws relating to or
affecting creditors’ rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). No qualification of the Indenture under the Trust Indenture Act of 1939
(the “Trust Indenture Act”) is required in connection with the offer and sale of the Notes in the manner contemplated hereby or by the Exchange Offer. 

(m) The Company has all requisite corporate power and authority to execute, issue, sell and perform its obligations under
the Notes. The Notes have been duly authorized by the Company and, when duly executed by the Company in accordance with the terms of the Indenture, assuming due authentication of the Notes by the Trustee, upon delivery to the Purchaser against
payment therefor in accordance with the terms hereof, will be validly issued and delivered and will constitute valid and binding obligations of the Company entitled to the benefits of the Indenture, enforceable against the Company in accordance with
their terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general equitable principles
(regardless of whether such enforceability is considered in a proceeding in equity or at law). 

  
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 (n) Each of the Company and the Guarantors has all requisite corporate power
and authority to execute, deliver and perform its obligations under the Security Documents. Each Security Document has been duly and validly authorized by each of the Company and the Guarantors and, upon its execution and delivery by all the parties
thereto, will constitute the valid and binding agreement of each of the Company and the Guarantors, enforceable against it in accordance with its terms, except as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). 

(o) Each of the Company and the Guarantors has all requisite corporate power and authority to execute, deliver and perform
its obligations under the Registration Rights Agreements. The Registration Rights Agreements have been duly and validly authorized by each of the Company and the Guarantors and, upon its execution and delivery by all of the parties thereto, will
constitute the valid and binding agreement of each of the Company and the Guarantors, enforceable against it in accordance with its terms, except (i) as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency,
reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law) and (ii) as
any indemnification provisions contained therein relating to securities law liabilities may be unenforceable. 

(p) Each of the Guarantors has all requisite corporate power and authority to execute, issue, sell and perform its
obligations under the Note Guarantees and the related Notation of Guarantee. The Note Guarantees and Notations of Guarantee have been duly authorized by the Guarantors and, when duly executed by the Guarantors in accordance with the terms of the
Indenture, will constitute valid and binding obligations of each of the Guarantors entitled to the benefits of the Indenture, enforceable against each of the Guarantors in accordance with their terms, except as such enforceability may be limited by
bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium, and other laws relating to or affecting creditors’ rights generally and by general equitable principles (regardless of whether such enforceability is considered in a
proceeding in equity or at law). 
 (q) Each of the Company and the Guarantors has all requisite corporate power
and authority to execute, deliver and perform its obligations under this Agreement and the other NPAs. Each such NPA has been duly and validly authorized by each of the Company and the Guarantors and, upon its execution and delivery by each of the
parties thereto, (assuming the due authorization, execution and delivery thereof by any other parties thereto other than the Company and the Guarantors) will constitute the valid and binding obligation of each of the Company and the Guarantors, in
accordance with the terms thereof, enforceable against it in accordance with its terms, except (i) as such enforceability may be limited by bankruptcy, fraudulent conveyance, insolvency, reorganization, moratorium and other similar laws
relating to or affecting creditors’ rights generally, by general equitable principles (regardless of whether such enforceability is considered in a proceeding in equity or at law) and, as to rights of indemnification and contribution with
respect to liabilities under securities laws, by principles of public policy and (ii) as any indemnification provisions contained therein relating to securities law liabilities may be unenforceable. 

  
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 (r) To the extent described in the Disclosure Package, each Transaction
Document conforms in all material respects to the description thereof in the Disclosure Package. 
 (s) The
Transactions will not (i) conflict with or result in a breach or violation of any of the terms or provisions of, impose any lien, charge or encumbrance upon any property or assets of the Company, the Guarantors or their respective subsidiaries,
or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, license, lease or other agreement or instrument to which the Company, the Guarantors or any of their respective subsidiaries is a party or by which the Company,
the Guarantors or any of their respective subsidiaries is bound or to which any of the property or assets of the Company, the Guarantors or any of their respective subsidiaries is subject, except for Liens created by the Transaction Documents,
(ii) result in any violation of the provisions of the certificate of formation, limited liability company agreement, charter or by-laws (or similar organizational documents) of any of the Company, the Guarantors or any of their respective
subsidiaries or (iii) result in any violation of any statute or any judgment, order, decree, rule or regulation of any court or governmental agency or body having jurisdiction over any of the Company, the Guarantors or any of their respective
subsidiaries or any of their properties or assets, except, with respect to clauses (i) and (iii) above, where any such matters would not, individually or in the aggregate, have a Purchase Agreement Material Adverse Effect. 

(t) No consent, approval, authorization or order of, or filing, registration or qualification with any court or
governmental agency or body having jurisdiction over any of the Company, the Guarantors or any of their respective subsidiaries and properties or assets is required for the execution, delivery and performance by the Company and the Guarantors, to
the extent a party thereto, of the Transaction Documents or the completion of the Transactions, except (i) in connection with the registration process contemplated by the Registration Rights Agreements, (ii) in connection with the filing
of certain Security Documents with various governmental authorities as contemplated by the Transactions, and/or (iii) except where the failure to make or obtain any such filing, registration or qualification such matters would not, individually
or in the aggregate, have a Purchase Agreement Material Adverse Effect. 
 (u) Other than pursuant to the
Offering Memorandum and other than the Registration Rights Agreements, there are no contracts, agreements or understandings between any of the Company and the Guarantors and any person, granting such person the right to require the Company or the
Guarantors to file a registration statement under the Securities Act with respect to any securities of the Company or the Guarantors owned or to be owned by such person. 

(v) None of the Company, the Guarantors nor any other person acting on behalf of the Company or the Guarantors has sold or
issued any securities that would be integrated with the offering of the Notes contemplated by this Agreement pursuant to the Securities Act, the rules and regulations thereunder or the interpretations thereof by the

  
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Commission. The Company and the Guarantors will take reasonable precautions designed to insure that any offer or sale, direct or indirect, in the United States or to any U.S. person (as defined
in Rule 902 under the Securities Act), of any Notes or any substantially similar security issued by the Company or the Guarantors, within six months subsequent to the date hereof, is made under restrictions and other circumstances reasonably
designed not to affect the status of the offer and sale of the Notes in the United States and to U.S. persons contemplated by this Agreement as transactions exempt from the registration provisions of the Securities Act, including any sales pursuant
to Rule 144A under, or Regulation S of, the Securities Act. 
 (w) Since the date of the latest audited financial
statements included in or incorporated by reference into the Disclosure Package and except as disclosed in the Disclosure Package, none of the Company, the Guarantors or any of their respective subsidiaries has (i) sustained any loss or
interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor disturbance or dispute or court or governmental action, order or decree, (ii) issued or granted any securities,
(iii) incurred any liability or obligation, direct or contingent, other than liabilities and obligations that were incurred in the ordinary course of business, that is material to the Company and its subsidiaries, taken as a whole,
(iv) entered into any transaction not in the ordinary course of business, that is material to the Company and its subsidiaries, taken as a whole, (v) declared or paid any dividend on its capital stock, and (vi) since such date, there
has not been any change in the capital stock or limited liability interests, as applicable, or long-term debt of any of the Company, the Guarantors or any of their respective subsidiaries or any adverse change, or any development involving a
prospective adverse change, in or affecting the condition (financial or otherwise), results of operations, stockholders’ equity or limited liability company interests, as applicable, properties, management, business or prospects of any of the
Company, the Guarantors or their respective subsidiaries, in each case except as would not, in the aggregate, reasonably be expected to have a Purchase Agreement Material Adverse Effect and/or except, in the case of clauses (ii), (iii),
(iv) and (vi), pursuant to the Transactions. 
 (x) Except as disclosed in the Disclosure Package, there are
no judicial, administrative, legal or governmental proceedings (including any notice of violation or alleged violation) pending to which any of the Company, the Guarantors or any of their respective subsidiaries is a party or of which any property
or assets of the Company, the Guarantors or any of their respective subsidiaries is the subject that would, in the aggregate, reasonably be expected to have a Purchase Agreement Material Adverse Effect. To the Company’s and the Guarantors’
knowledge, no such proceedings are threatened or contemplated by governmental authorities or others. 
 (y)
Except as would not reasonably be expected to have a Purchase Agreement Material Adverse Effect: 
 (i) The
facilities and properties owned, leased or operated by the Company and the Guarantors or any of their subsidiaries (the “Properties”) do not contain any hazardous or toxic substances, materials or wastes defined or regulated
as such in or under any Environmental Law (as defined below), including, without limitation, asbestos, perchlorate, polychlorinated biphenyls and urea-formaldehyde insulation (“Materials of Environmental Concern”) in amounts
or concentrations which (i) constitute a violation of, or (ii) could 

  
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reasonably be expected to give rise to liability on behalf of any of the Company or the Guarantors under, any and all applicable foreign, federal, state, local or municipal laws, rules, orders,
regulations, statutes, ordinances, codes, decrees, requirements of the government of the United States of America or any other nation, or of any political subdivision thereof, whether state or local (including common law) regulating, relating to or
imposing liability or standards of conduct concerning protection of (i) human health from exposure to any Materials of Environmental Concern or (ii) the environment, as now or may at any time be in effect during the term of this Agreement
(“Environmental Law”); 
 (ii) Materials of Environmental Concern have not been
transported or disposed of from the Properties, in violation of, or in a manner or to a location that could reasonably be expected to give rise to liability on behalf of the Company or the Guarantors under any Environmental Law, and no Materials of
Environmental Concern have been generated, treated, stored or disposed of at, on or under any of the Properties in violation of, or in a manner that could reasonably be expected to give rise to liability on behalf of the Company or the Guarantors
under, any applicable Environmental Law; and 
 (iii) there has been no release or threat of release of Materials
of Environmental Concern at or from the Properties or arising from or related to the operations of the Company or the Guarantors or any Subsidiary in connection with the Properties, or otherwise in connection with the Business, in violation of or in
amounts or in a manner that could reasonably be expected to give rise to liability on behalf of the Company or the Guarantors under Environmental Laws. 
 (z) (i) Each “employee benefit plan” (within the meaning of Section 3(3) of the Employee Retirement Security Act of 1974, as amended (“ERISA”) and whether or
not subject to ERISA) that is or, in the past six years has been maintained, administered or contributed to, or has had any obligation to contribute to, by any of the Company, the Guarantors or any member of the respective Controlled Group (each a
“Plan”), has been maintained in all material respects in compliance with its terms and with the requirements of all applicable statutes, rules and regulations including ERISA and the Code; (ii) no prohibited transaction,
within the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred with respect to any Plan excluding transactions effected pursuant to a statutory or administrative exemption; (iii) no Plan is or was subject to
Title IV of ERISA or is or was a Multiemployer Plan; (iv) each Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and nothing has occurred, whether by action or by failure to act, which would cause the
loss of such qualification; and (v) none of the Company or the Guarantors or a member of a Controlled Group under any of them has any material liability with regards to any post-retirement welfare benefit under a Plan other than as required by
Part 6 of Subtitle B of Title I of ERISA or similar required continuation of coverage law. 
 (aa) The Company,
the Guarantors and their respective subsidiaries maintain insurance of the types and in the amounts generally deemed adequate in all material respects for its business, including, but not limited to, directors’ and officers’ insurance,
insurance covering real and personal property owned or leased by the Company, the Guarantors and their respective subsidiaries against theft, damage, destruction, acts of vandalism and all other risks customarily insured against, all of which
insurance is in full force and effect. None of the 

  
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Company, the Guarantors or any of their respective subsidiaries has been refused any insurance coverage sought or applied for, and the none of the Company, the Guarantors, or any such subsidiary
has any reason to believe that it, the Guarantors and their respective subsidiaries will not be able to renew their existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary
to continue its business at a cost that would not have a Purchase Agreement Material Adverse Effect. 
 (bb)
There is not currently and has not in the past been a failure on the part of the Company, the Guarantors or their respective subsidiaries or, to the Company’s or the Guarantor’s knowledge, any of its respective directors or officers, in
their capacities as such, to comply with any applicable provisions of Sarbanes-Oxley and the rules and regulations promulgated in connection therewith, including Sections 302, 402 and 906, and the statements contained in any certification pursuant
to Sarbanes-Oxley and related rules and regulations are complete and correct. The Company and each Guarantor has established and maintains disclosure controls and procedures and internal control over financial reporting as are currently required (as
such terms are defined in Rule 13a-15 and 15d-15 under the Exchange Act); the Company’s and the Guarantor’s disclosure controls and procedures (A) are designed to ensure that information required to be disclosed by the Company in the
reports that it files or submits under the Exchange Act is accumulated and communicated to management, including the principal executive and principal financial officer of the Company, or persons performing similar functions, as appropriate to allow
timely decisions regarding required disclosure, and that such information is recorded, processed, summarized and reported, within the time periods specified in the Exchange Act and the Rules and Regulations; (B) have been evaluated for
effectiveness; and (C) are effective in all material respects to perform the functions for which they were established. Except as discussed with the Company’s auditors and audit committee and as disclosed in the Disclosure Package,
(A) there are no significant deficiencies or material weaknesses in the design or operation of internal control over financial reporting that are reasonably likely to adversely affect the Company’s or the Guarantor’s ability to
record, process, summarize, and report financial data and (B) there is, and there has been, no fraud, whether or not material, that involves management or other employees who have a role in the Company’s or the Guarantor’s internal
control over financial reporting. Since the date of the end of the last fiscal year for which audited financial statements are included or incorporated by reference in the Disclosure Package, there have been no significant changes in internal
control over financial reporting or in other factors that could significantly affect internal control over financial reporting, including any corrective actions with regard to significant deficiencies and material weaknesses. The Company has
received no written comments from the staff of the Commission regarding its periodic or current reports under the Exchange Act that remain unresolved and have not been disclosed in the Disclosure Package. 

(cc) None of the Company or the Guarantors or any of their respective subsidiaries, nor, to the knowledge of the Company
or the Guarantors, any director, officer, manager, member, agent, employee or other person associated with or acting on behalf of the Company, the Guarantors or any of their respective subsidiaries, has (i) used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds;
(iii) violated or is in violation of any provision of the Foreign Corrupt Practices Act of 1977; or (iv) made any bribe, rebate, payoff, influence payment, kickback or other unlawful payment. 

  
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 (dd) None of the Transactions will violate or result in a violation of
Regulations T, U and X of the Board of Governors of the Federal Reserve System. 
 (ee) The Company, the
Guarantors and their respective Affiliates have not taken, directly or indirectly, any action designed to or that has constituted or that would reasonably be expected to cause or result in the stabilization or manipulation of the price of the Notes.

 (ff) Each of the Company, the Guarantors and their respective subsidiaries have (i) good and Defensible
(as defined below) title to all its interests in its producing natural gas and oil properties (including oil and gas wells, producing leasehold interests and appurtenant personal property) as described in the Disclosure Package as owned by it,
(ii) investigated title in accordance with customary industry procedures prior to acquiring any non-producing leasehold properties (including undeveloped locations or leases held by production, and those leases not held by production and
including exploration prospects) described in the Disclosure Package as owned by it, (iii) good and indefeasible title to its other real property as described in the Disclosure Package as owned by it and (iv) good title to its personal
property as described in the Disclosure Package as owned by it, in each case free and clear of all liens, claims, security interests, equities, or other encumbrances except those (a) described in the Disclosure Package or (b) that do not
materially interfere with the use or value of such properties taken as a whole as described in the Disclosure Package. All real property and buildings held under lease or license by the Company or its Subsidiaries are held under valid and subsisting
and enforceable leases or licenses with such exceptions as do not materially interfere with the use of such properties taken as a whole as they have been used in the past and are proposed to be used in the future as described in the Disclosure
Package. As used herein, “Defensible” means, with respect to title to the producing properties (including oil and gas wells and producing leasehold interests) described in the Disclosure Package as being owned by the Company,
the Guarantors or any of their respective subsidiaries, that the Company, the Guarantors and their respective subsidiaries (1) are entitled to receive not less than the net revenue interests of such properties as set forth in the reserve
reports of (x) MHA Petroleum Consultants, an independent petroleum engineering firm, dated as of October 27, 2011 and (y) DeGolyer and MacNaughton, an independent petroleum engineering firm, dated as of September 1, 2011
(collectively, the “Reserve Reports”) of all hydrocarbons and minerals produced, saved and marketed from such properties, and proceeds thereof, all without reduction, suspension or termination of such interests throughout the
productive life of such properties, and (2) are obligated to bear a share of the costs and expenses relating to the maintenance, exploration, drilling, completion, development, operation, plugging and abandonment of such properties greater than
the working interests of such properties as set forth in the Reserve Reports, without increase throughout the life of such properties. 
 (gg) Each of the Company, the Guarantors and their respective subsidiaries is in possession of and is operating in compliance with all franchises, grants, authorizations, licenses, certificates, permits,
easements, consents, orders and approvals (“Permits”) from all state, federal, foreign and other regulatory authorities, and has satisfied the requirements 

  
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imposed by regulatory bodies, administrative agencies or other governmental bodies, agencies or officials, that are required for the Company, the Guarantors and their respective subsidiaries
lawfully to own, lease and operate their properties and conduct their businesses as described in the Disclosure Package, and each of the Company, the Guarantors and their respective Subsidiaries is conducting its business in compliance with all of
the laws, rules and regulations of each jurisdiction in which it conducts its business, in each case with such exceptions, individually or in the aggregate, as would not have a Material Adverse Effect; each of the Company, the Guarantors and their
respective subsidiaries has filed all notices, reports, documents or other information (“Notices”) required to be filed under applicable laws, rules and regulations, in each case, with such exceptions, individually or in the
aggregate, as would not have a Material Adverse Effect; and, except as otherwise specifically described in the Disclosure Package, none of the Company, the Guarantors or any of their respective Subsidiaries has received any notification from any
court or governmental body, authority or agency, relating to the revocation or modification of any such Permit or to the effect that any additional authorization, approval, order, consent, license, certificate, permit, registration or qualification
(“Approvals”) from such regulatory authority is needed to be obtained by any of them, in any case where it is reasonably expected that obtaining such Approvals or the failure to obtain such Approvals, individually or in the
aggregate, would have a Purchase Agreement Material Adverse Effect. 
 (hh) Except as described in the Disclosure
Package, the Company, the Guarantors and their respective subsidiaries own or possess, or can acquire on reasonable terms, adequate patents, patent licenses, trademarks, service marks and trade names necessary to conduct the business now operated by
them, and neither the Company, the Guarantors nor any of their respective subsidiaries has received any notice of infringement of or conflict with asserted rights of others with respect to any patents, patent licenses, trademarks, service marks or
trade names that, individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Purchase Agreement Material Adverse Effect. 

(ii) When executed and delivered to the Trustee at the Closing, the Security Documents will grant and create, in favor of
the Trustee for the benefit of the holders of the Notes as security for all of the Secured Obligations (as such term is defined in the Security Agreement), a valid and enforceable Lien in the Collateral (as defined in Exhibit I hereto), and
when the filings, the act of taking possession or the other acts, (as the case may be) referred to in the following sentences are made or taken, such Liens will be perfected Liens (subject to Permitted Liens as defined in the Indenture), The Company
will also deliver at the Closing, UCC-1 financing statements for each of the grantors, together with all schedules and exhibits to such financing statements, in appropriate form for filing with the Secretary of State (or other authorized officer)_
of the jurisdiction of formation for such grantor (“UCC Financing Statements”), covering the Collateral described therein as being covered thereby. The Company shall file each such UCC Financing Statement in the appropriate
governmental office referred to in the preceding sentence. 
 (jj) After giving effect to the Transactions
(including, without limitation, the retirement of existing indebtedness and the related agreements contemplated thereby), other than Liens granted pursuant to the Transaction Documents and Permitted Liens, none of the Company or the Guarantors have
pledged, assigned, sold or granted a security interest in the 

  
 11 

 
Collateral. After giving effect to the Transactions (including, without limitation, the retirement of existing indebtedness and the related agreements contemplated thereby), no security
agreement, financing statement, equivalent security or Lien instrument or continuation statement authorized by the Company or any Guarantor and listing the Company or any Guarantor as debtor covering all or any part of the Collateral shall be on
file or of record in any jurisdiction, except in respect of Permitted Liens or such as may have been filed, recorded or made as contemplated by the Transaction Documents. 

(kk) The historical financial statements (including the related notes and supporting schedules) included in or
incorporated by reference into the Disclosure Package present fairly in all material respects the financial condition, results of operations and cash flows of the entities purported to be shown thereby, at the dates and for the periods indicated,
and have been prepared in conformity with accounting principles generally accepted in the United States applied on a consistent basis throughout the periods involved. 

(ll) The Company, the Guarantors and their respective subsidiaries have filed all necessary federal, state and material
foreign income and material franchise tax returns required to be filed prior to the date hereof (taking into account extensions requested in good faith by the Company and in compliance with applicable tax rules and regulations) and paid all taxes
shown as due thereon; all such tax returns are complete and correct in all material respects; all material tax liabilities are adequately provided for on the books of the Company, the Guarantors and their respective subsidiaries; and the Company and
the Guarantors have no knowledge of any tax proceeding or action pending or threatened against the Company, the Guarantors or any of their respective subsidiaries that, individually or in the aggregate, might have a Purchase Agreement Material
Adverse Effect. 
 (mm) No labor disturbance by or dispute with the employees of the Company or any of its
subsidiaries exists or, to the knowledge of the Company or such subsidiaries, is imminent that would reasonably be expected to have a Purchase Agreement Material Adverse Effect. 

(nn) The operations of the Company, the Guarantors and their respective subsidiaries are and have been conducted at all
times in compliance with applicable financial recordkeeping and reporting requirements of the Bank Secrecy Act, as amended by Title III of the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act of 2001, the Currency and Foreign Transactions Reporting Act of 1970, as amended, and the money laundering statutes of all jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines,
issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”) and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator
involving the Company, the Guarantors or any of their respective subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company or the Guarantors, threatened. 

  
 12 

 (oo) None of the Company, the Guarantors or any of their respective
subsidiaries nor, to the knowledge of any of the Company or the Guarantors, any director, officer, manager, member, agent, employee or affiliate of any of the Company, the Guarantors or any of their respective subsidiaries is currently subject to
any U.S. sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the Company and the Guarantors will not directly or indirectly use the proceeds of the offering of the
Notes, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered
by OFAC. 
 (pp) Immediately after the consummation of the Transactions, each of the Company and the Guarantors
will be Solvent. As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or present fair saleable value) of the assets of the relevant
entity are not less than the total amount required to pay the probable liabilities of such entity on its total existing debts and liabilities (including contingent liabilities) as they become absolute and matured, (ii) the relevant entity is
able to realize upon its assets and pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business, (iii) assuming the completion of the transactions contemplated by
the Transaction Documents, the relevant entity is not incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature, (iv) the relevant entity is not engaged in any business or transaction, and is not about to
engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the prevailing practice in the industry in which such entity is engaged, and (v) the relevant entity is
not a defendant in any civil action that is reasonably expected to result in a judgment that such entity is or would become unable to satisfy. In computing the amount of such contingent liabilities at any time, it is intended that such liabilities
will be computed at the amount that, in the light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability. 

(qq) To the best knowledge of the Company and the Guarantors, no change in any laws or regulations is pending that could
reasonably be expected to be adopted and if adopted, is reasonably expected to have, individually or in the aggregate with all such changes, a Purchase Agreement Material Adverse Effect, except as set forth in or contemplated in the Disclosure
Package. 
 (rr) The Company is subject to Section 13 or 15(d) of the Exchange Act. 

(ss) Except as set forth in the Disclosure Package, none of the Company or the Guarantors is a party to any contract,
agreement or understanding with any person that would give rise to a valid claim against any of them or the Purchaser for a brokerage commission, finder’s fee or like payment in connection with the Transactions. 

Any certificate signed by any officer of the Company and delivered to the Purchaser or counsel for the Purchaser in connection with the
offering of the Notes shall be deemed a representation and warranty by the Company, as to matters covered thereby, to the Purchaser, and not a representation or warranty by the individual officer. 

Any certificate signed by any officer of any of the Guarantors and delivered to the Purchaser or counsel for the Purchaser in connection
with the offering of the Notes shall be deemed a representation and warranty by such Guarantor, as to matters covered thereby, to the Purchaser, and not a representation or warranty by the individual officer. 

  
 13 

 4. Representations, Warranties and Agreements of the Purchaser. The Purchaser hereby
represents and warrants to the Company and the Guarantors as follows (it being understood that the Purchaser does not make any representation, warranty, covenant or agreement to any other purchaser of Notes or to the Company or the Guarantors on
behalf of any other purchaser of the Notes): 
 (a) The Purchaser has full power and authority to purchase the
Purchased Notes issued and offered hereby. 
 (b) The Purchaser (i) is knowledgeable, sophisticated and
experienced in making, and is qualified to make, decisions with respect to investments in securities representing an investment decision like that involved in the purchase of the Purchased Notes, and has requested, received, reviewed and considered
all information it deems relevant in making an informed decision to purchase the Purchased Notes; (ii) is acquiring the Purchased Notes in the ordinary course of its business and for its own account for investment purposes only and with no
present intention of distributing any of such Purchased Notes or any arrangement or understanding with any other persons regarding the distribution of such Purchased Notes; and (iii) will not, directly or indirectly, offer, sell, pledge,
transfer or otherwise dispose of (or solicit any offers to buy, purchase or otherwise acquire or take a pledge of) any of the Purchased Notes except in compliance with the Securities Act and any applicable state securities laws. 

(c) The Purchaser is a “qualified institutional buyer” as defined in Rule 144A and/or an “accredited
investor” as defined in Rule 501(a), in each case as promulgated under the Securities Act. 
 (d) The
Purchaser understands and acknowledges that (i) the Purchased Notes are being offered in transactions that rely on an exemption from registration provided by Section 4(2) of the Securities Act and an exemption from applicable state
securities law requirements; (ii) the initial offering and issuance of the Purchased Notes has not been registered under the Securities Act or any other securities laws; (iii) if in the future it decides to resell, pledge or otherwise
transfer the Purchased Notes that it purchases hereunder, those Purchased Notes, absent an effective registration statement under the Securities Act, may be resold, pledged or transferred only pursuant to an applicable exemption from registration
under the Securities Act in accordance with any applicable securities laws of the states and other jurisdictions of the United States, and (iv) it will, and each subsequent holder of any of the Purchased Notes that it purchases in this offering
is required to, notify any subsequent purchaser of such Purchased Notes from it or subsequent holders, as applicable, of the resale restrictions referred to in clause (iii) above. 

(e) The Purchaser understands and acknowledges that (i) the Company and the Guarantors are relying upon the truth and
accuracy of the acknowledgements, representations, and agreements of the Purchaser set forth herein; (ii) none of the Company, the Guarantors, or any person acting on behalf of the foregoing has made any statement, representation, or warranty,
express or implied, to it with respect to the Company, the Guarantors, or the offer or sale of any Notes, other than the information included in the Disclosure Package. 

  
 14 

 (f) The Purchaser understands that the Notes will bear a restrictive legend
substantially in the following form or otherwise as required pursuant to the Indenture: 
 “THIS NOTE HAS NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED EXCEPT IN ACCORDANCE WITH THE FOLLOWING SENTENCE. BY ITS ACQUISITION HEREOF OR OF A BENEFICIAL
INTEREST HEREIN, THE ACQUIRER 
 (1) REPRESENTS THAT 
 (A) IT AND ANY ACCOUNT FOR WHICH IT IS ACTING IS A “QUALIFIED INSTITUTIONAL BUYER” (WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT) AND THAT IT EXERCISES SOLE INVESTMENT DISCRETION
WITH RESPECT TO EACH SUCH ACCOUNT, 
 (B) IT IS AN INSTITUTIONAL “ACCREDITED INVESTOR” (WITHIN THE MEANING OF RULE
501(a) (1), (2), (3) OR (7) UNDER THE SECURITIES ACT) (AN “INSTITUTIONAL ACCREDITED INVESTOR”), OR 
 (C) IT
IS NOT A UNITED STATES PERSON (WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT) AND 
 (2) AGREES FOR THE BENEFIT OF
THE ISSUER THAT IT WILL NOT OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS NOTE OR ANY BENEFICIAL INTEREST HEREIN, EXCEPT IN ACCORDANCE WITH THE SECURITIES ACT AND ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES AND ONLY 

(A) TO GMX RESOURCES, INC. OR ANY OF ITS SUBSIDIARIES, 
 (B) PURSUANT TO A REGISTRATION STATEMENT WHICH HAS BECOME EFFECTIVE UNDER THE SECURITIES ACT, 

  
 15 

 (C) TO A QUALIFIED INSTITUTIONAL BUYER IN COMPLIANCE WITH RULE 144A UNDER THE SECURITIES
ACT, 
 (D) IN AN OFFSHORE TRANSACTION IN COMPLIANCE WITH RULE 904 OF REGULATION S UNDER THE SECURITIES ACT, 

(E) IN A PRINCIPAL AMOUNT OF NOT LESS THAN $250,000, TO AN INSTITUTIONAL ACCREDITED INVESTOR THAT, PRIOR TO SUCH TRANSFER, DELIVERS TO THE
TRUSTEE A DULY COMPLETED AND SIGNED CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) RELATING TO THE RESTRICTIONS ON TRANSFER OF THIS NOTE, OR 
 (F) PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED BY RULE 144 UNDER THE SECURITIES ACT OR ANY OTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT. 

PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(C) ABOVE OR (2)(D) ABOVE, A DULY COMPLETED AND SIGNED
CERTIFICATE (THE FORM OF WHICH MAY BE OBTAINED FROM THE TRUSTEE) MUST BE DELIVERED TO THE TRUSTEE. PRIOR TO THE REGISTRATION OF ANY TRANSFER IN ACCORDANCE WITH (2)(E) OR (F) ABOVE, THE ISSUER RESERVES THE RIGHT TO REQUIRE THE DELIVERY OF
SUCH LEGAL OPINIONS, CERTIFICATIONS OR OTHER EVIDENCE AS MAY REASONABLY BE REQUIRED IN ORDER TO DETERMINE THAT THE PROPOSED TRANSFER IS BEING MADE IN COMPLIANCE WITH THE SECURITIES ACT AND APPLICABLE STATE SECURITIES LAWS. NO REPRESENTATION OR
WARRANTY IS MADE AS TO THE AVAILABILITY OF ANY RULE 144 EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.” 
 (g) (i) The Purchaser has full right, power, authority and capacity to enter into this Agreement and to consummate the transactions contemplated hereby and has taken all necessary action to authorize
the execution, delivery and performance of this Agreement, and (ii) the execution, delivery and performance of the Agreement by the Purchaser and the consummation of the transactions herein contemplated will not violate any provision of the
organizational documents of the Purchaser or any statute or any authorization, judgment, decree, order, rule or regulation of any court or any regulatory body, administrative agency or other governmental body applicable to Purchaser. 

  
 16 

 (h) The Purchaser understands that no United States federal or state agency
or any other government or governmental agency has passed upon or made any recommendation or endorsement of the Notes or the fairness or suitability of the investment in the Notes nor have such authorities passed upon or endorsed the merits of the
offering of the Notes. 
 (i) The Purchaser’s principal executive offices are in the jurisdiction set forth
under the Purchaser’s signature on the signature block hereto. 
 (j) The Purchaser acknowledges that the
Company, the Guarantors and its counsel will rely upon the accuracy of the foregoing acknowledgments, representations and agreements. The Purchaser agrees that if any of the acknowledgments, representations or agreements that Purchaser is deemed to
have made by its purchase of the Purchased Notes is no longer accurate, it shall promptly notify the Company and the Guarantors. If the Purchaser is purchasing the Purchased Notes as a fiduciary or agent for one or more investor accounts, the
Purchaser represents that it has sole investment discretion with respect to each of those accounts. 
 (k) The
Purchaser has tendered its Original Notes in exchange for the Exchange Notes in connection with the exchange offer contemplated by the Offering Memorandum, has made the Exchange and Purchase Election as described in the Offering Memorandum and has
delivered to the Exchange Agent the cash as required by such election. 
 5. Agreements of the Company and the
Guarantors. The Company and the Guarantors, jointly and severally, agree with the Purchaser as follows: 

(a) The Company and the Guarantors will apply the net proceeds from the sale of the Purchased Notes to be sold by the
Company hereunder substantially in accordance with the description set forth in the Disclosure Package. 
 (b)
The Company, the Guarantors and their respective Affiliates will not take, directly or indirectly, any action designed to or that has constituted or that reasonably could be expected to cause or result in the stabilization or manipulation of the
price of any security of the Company and the Guarantors in connection with the offering of the Notes. 
 (c) The
Notes will be eligible for clearance and settlement in the United States through DTC and in Europe through Euroclear Bank, S.A./N.V., or Clearstream Banking, société anonyme. 

(d) The Company and the Guarantors will not, and will not cause their respective Affiliates to, engage in any
“directed selling efforts” within the meaning of Rule 902 under the Securities Act. 

  
 17 

 (e) The Company and the Guarantors will, and will cause their respective
Affiliates to, comply with and implement the “offering restrictions” required by Rule 902 under the Securities Act with respect to the sale of the Notes. 

(f) The Company and the Guarantors agree not to sell, offer for sale or solicit offers to buy or otherwise negotiate in
respect of any security (as defined in the Securities Act) that would be integrated with the sale of the Notes in a manner that would require the registration under the Securities Act of the sale to the Purchaser of the Notes. The Company and the
Guarantors will take reasonable precautions designed to insure that any offer or sale, direct or indirect, in the United States or to any U.S. person (as defined in Rule 902 under the Securities Act) or U.S. resident (as defined in the Investment
Company Act), of any Notes or any substantially similar security issued by the Company or the Guarantors, within six months subsequent to the date on which the distribution of the Notes has been completed (as notified to the Company by the
Purchaser), is made under restrictions and other circumstances reasonably designed not to affect the status of the offer and sale of the Notes in the United States and to U.S. persons or U.S. residents contemplated by this Agreement as transactions
exempt from the registration provisions of the Securities Act, including any sales pursuant to Rule 144A under, or Regulations D or S of, the Securities Act. 
 (g) The Company and the Guarantors agree to comply with all agreements set forth in the representation letters of the Company and the Guarantors to DTC relating to the approval of the Notes by DTC for
“book entry” transfer. 
 6. Conditions to Purchaser’s Obligations. The obligations of the Purchaser
hereunder are subject (i) to the accuracy of the representations and warranties of the Company and the Guarantors contained herein, (ii) to the accuracy of the statements of each of the Company, the Guarantors and each of their respective
officers made in any certificate delivered pursuant hereto, (iii) to the performance by the Company and the Guarantors of their respective obligations hereunder, and (iv) to each of the following additional terms and conditions:

 (a) All corporate proceedings and other legal matters incident to the authorization, form and validity of the
Transaction Documents and all other legal matters relating to this Agreement and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to counsel for the Purchaser, and the Company and the Guarantors shall
have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters. 
 (b) Andrews Kurth LLP, special counsel to the Company and the Guarantors, and Crow & Dunlevy, special Oklahoma counsel to the Company and the Guarantors, shall have delivered opinions
substantially in the form attached hereto as Exhibit VI, and such other local counsel to the Company and the Guarantors, as applicable, shall have delivered such other opinions as are reasonably satisfactory to the Purchaser; 

  
 18 

 (c) The Company shall have furnished or caused to be furnished to the
Purchaser a certificate of the Chief Financial Officer of the Company, or other officers satisfactory to the Purchaser, dated the date hereof, as to such matters as the Purchaser may reasonably request, including, without limitation, a statement
that: 
 (i) The representations, warranties and agreements of the Company and the Guarantors, as applicable, in
Section 3 herein and in any other Transaction Document to which each of the Company and any of the Guarantors, as applicable, is a party are true and correct, and the Company and the Guarantors, as applicable, has complied with all its
agreements contained herein and in any other Transaction Document to which it is a party and satisfied all the conditions on its part to be performed or satisfied hereunder or thereunder; 

(ii) They have carefully examined the Disclosure Package and, in their opinion, the Disclosure Package, as of the date
hereof, does not contain any untrue statement of a material fact and does not omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

(d) The Company shall have furnished or caused to be furnished to the Purchaser a certificate of the Company, dated the
date hereof, substantially in the form of Exhibit VII hereto. 
 (e) The Company shall have furnished or
caused to be furnished to the Purchaser a solvency certificate, dated the date hereof, substantially in the form of Exhibit VIII hereto. 
 (f) The Notes shall be eligible for clearance and settlement through DTC. 
 (g) The Company and the Trustee shall have executed and delivered the Indenture, and the Purchaser shall have received an original copy thereof, duly executed by the Company and the Trustee. 

(h) The Notes shall have been duly executed and delivered by the Company and duly authenticated by the Trustee.

 (i) The Note Guarantees shall have been duly executed and delivered by the Guarantors. 

(j) Each Notation of Guarantee shall have been duly executed and delivered by the Guarantors. 

(k) Each of the Transaction Documents shall have been duly executed and delivered by the respective parties thereto (other
than the Purchaser). 
 (l) The representations and warranties of each of the Company and the Guarantors (to the
extent a party thereto) contained in the Transaction Documents to which each of the Company and any such Guarantor is a party are true and correct as of the date hereof. 

(m) Purchased Notes (in an aggregate principal amount equal to $100.0 million less the aggregate principal amount of
Purchased Notes sold hereby) shall have been sold pursuant to the other NPAs simultaneously with the sale of the Purchased Notes sold hereby, and the use of proceeds therefrom shall conform to the description in the Disclosure Package. 

  
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 (n) The Transactions shall have been consummated as contemplated by the
Disclosure Package. 
 All opinions, letters, evidence and certificates mentioned above or elsewhere in this
Agreement shall be deemed to be in compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Purchaser. 
 7. Indemnification and Contribution. 
 (a) Each of the
Company and the Guarantors hereby agrees, jointly and severally, to indemnify and hold harmless the Purchaser, its Affiliates, directors, officers and employees and each person, if any, who controls the Purchaser within the meaning of
Section 15 of the Securities Act or Section 20 of the Exchange Act, from and against any loss, claim, damage or liability, joint or several, or any action in respect thereof (including, but not limited to, any loss, claim, damage,
liability or action relating to purchases and sales of Notes), to which the Purchaser, affiliate, director, officer, employee or controlling person may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage,
liability or action arises out of, or is based upon, (i) any breach by the Company or the Guarantors of any representation or warranty or material failure to comply with any of the covenants and agreements contained in this Agreement,
(ii) any untrue statement or alleged untrue statement of a material fact contained (A) in the Disclosure Package or in any amendment or supplement thereto, (B) in any Blue Sky application or other document prepared or executed by the
Company or the Guarantors (or based upon any written information furnished by the Company or the Guarantors) specifically for the purpose of qualifying any or all of the Notes under the securities laws of any state or other jurisdiction (any such
application, document or information being hereinafter called a “Blue Sky Application”), (iii) the omission or alleged omission to state in the Disclosure Package, or in any amendment or supplement thereto, in any Blue
Sky Application, any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading or (iv) the Transactions (other than those contemplated by this Agreement) and
shall reimburse the Purchaser and each such director, officer, employee or controlling person promptly upon demand for any legal or other expenses reasonably incurred by the Purchaser, affiliate, director, officer, employee or controlling person in
connection with investigating or defending or preparing to defend against any such loss, claim, damage, liability or action as such expenses are incurred. The foregoing indemnity agreement is in addition to any liability that the Company and the
Guarantors may otherwise have to the Purchaser or to any affiliate, director, officer, employee or controlling person of the Purchaser. 
 (b) Promptly after receipt by an indemnified party under this Section 7 of notice of any claim or the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be
made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the claim or the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not
relieve it from any liability that it may have under this Section 7 except to the extent it has been materially prejudiced 

  
 20 

 
(through the forfeiture of substantive rights or defenses) by such failure and; provided, further, that the failure to notify the indemnifying party shall not relieve it from any
liability that it may have to an indemnified party otherwise than under this Section 7. If any such claim or action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall
be entitled to participate therein and, to the extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense thereof with counsel reasonably satisfactory to the indemnified party. After notice from the
indemnifying party to the indemnified party of its election to assume the defense of such claim or action, the indemnifying party shall not be liable to the indemnified party under this Section 7 for any legal or other expenses subsequently
incurred by the indemnified party in connection with the defense thereof other than reasonable costs of investigation; provided, however, that the Purchaser shall have the right to employ counsel to represent jointly the Purchaser and
its directors, officers, employees and controlling persons who may be subject to liability arising out of any claim in respect of which indemnity may be sought by the Purchaser against any of the Company or the Guarantors under this Section 7,
if (i) the Company, the Guarantors and the Purchaser shall have so mutually agreed; (ii) the Company and the Guarantors have failed within a reasonable time to retain counsel reasonably satisfactory to the Purchaser; (iii) the
Purchaser and its respective directors, managers, officers, employees and controlling persons shall have reasonably concluded, based on the advice of counsel, that there may be legal defenses available to them that are different from or in addition
to those available to the Company or the Guarantors; or (iv) the named parties in any such proceeding (including any impleaded parties) include both the Purchaser or its directors, officers, employees or controlling persons, on the one hand,
and the Company or the Guarantors, on the other hand, and representation of both sets of parties by the same counsel would present a conflict due to actual or potential differing interests between them, and in any such event the fees and expenses of
such separate counsel shall be paid by the Company and the Guarantors. No indemnifying party shall (x) without the prior written consent of the indemnified parties (which consent shall not be unreasonably withheld), settle or compromise or
consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding and does not include a
statement as to, or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party, or (y) be liable for any settlement of any such action effected without its written consent (which consent shall not be
unreasonably withheld), but if settled with the consent of the indemnifying party or if there be a final judgment of the plaintiff in any such action, the indemnifying party agrees to indemnify and hold harmless any indemnified party from and
against any loss or liability by reason of such settlement or judgment. 
 (c) If the indemnification provided
for in this Section 7 shall for any reason be unavailable to or insufficient to hold harmless an indemnified party under Section 7(a) in respect of any loss, claim, damage or liability, or any action in respect thereof, referred to
therein, then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified party as a result of such loss, claim, damage or liability, or action in respect thereof, in
such proportion as shall be appropriate to reflect the relative fault of the Company and the Guarantors, on the one hand, 

  
 21 

 
and the Purchaser, on the other, with respect to the statements or omissions that resulted in such loss, claim, damage or liability, or action in respect thereof, as well as any other relevant
equitable considerations. The relative fault shall be determined by reference to whether the untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the
Company and the Guarantors, or the Purchaser, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company, the Guarantors and the Purchaser agree that it
would not be just and equitable if contributions pursuant to this Section 7(c) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein.
The amount paid or payable by an indemnified party as a result of the loss, claim, damage or liability, or action in respect thereof, referred to above in this Section 7 shall be deemed to include, for purposes of this Section 7 any legal
or other expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. 
 8. Notices, etc. All statements, requests, notices and agreements hereunder shall be in writing, and: 
 (a) if to the Purchaser, shall be delivered or sent by hand delivery, mail, telex, overnight courier or facsimile transmission to the address specified on the signature page hereto, with a copy to Paul,
Weiss, Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, NY 10019, Attention: Lawrence Wee; and 
 (b) if to any of the Company or the Guarantors, shall be delivered or sent by mail, overnight courier or facsimile transmission to GMX Resources Inc., 9400 North Broadway, Suite 600, Oklahoma City, OK
73114, Attention: General Counsel, with a copy to Andrews Kurth LLP, 600 Travis Street, Suite 4200, Houston, TX 77002, Attention: David C. Buck, Esq. 
 9. Survival. The respective indemnities, rights of contribution, representations, warranties and agreements of the Company or the Guarantors and the Purchaser contained in this Agreement or made by
or on behalf of them, respectively, pursuant to this Agreement, shall survive the delivery of and payment for the Purchased Notes and shall remain in full force and effect, regardless of any termination of this Agreement or any investigation made by
or on behalf of any of them or any person controlling any of them. 
 10. Definition of the Terms “Business Day”,
“Affiliate”, and “Subsidiary.” For purposes of this Agreement, (a) “business day” means any day on which the New York Stock Exchange, Inc. is open for trading, and (b) “affiliate” and
“subsidiary” have the meanings set forth in Rule 405 under the Securities Act. 
 11. Governing
Law. This Agreement and any matters arising out of or in any way relating to this Agreement shall be governed by and construed in accordance with the laws of the State of New York. 

  
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 12. Submission to Jurisdiction. Each of the parties hereto hereby irrevocably and
unconditionally: 
 (a) submits for itself and its property in any legal action or proceeding relating to this
Agreement or any of the transactions contemplated hereby, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the State or Federal courts sitting in the Borough of Manhattan, the City
of New York (“New York Courts”); 
 (b) consents that any such action or proceeding may
be brought in such New York Courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such New York Court or that such action or proceeding was brought in an inconvenient court and agrees
not to plead or claim the same; 
 (c) agrees that service of process in any such action or proceeding may be
effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage prepaid, to any party hereto at its address set forth in Section 9 or at such other address of which such party shall have
been notified pursuant thereto; and 
 (d) agrees that nothing herein shall affect the right to effect service of
process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction; and waives, to the maximum extent not prohibited by law, any right it may have to claim or recover in any legal action or proceeding referred to
in this Section 13 any special, exemplary, punitive or consequential damages. 
 13. Waiver of Jury Trial. The
Company, the Guarantors and the Purchaser hereby irrevocably waive, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. 
 14. Counterparts. This Agreement may be executed in one or more counterparts and, if executed in
more than one counterpart, the executed counterparts shall each be deemed to be an original but all such counterparts shall together constitute one and the same instrument. 
 15. Headings. The headings herein are inserted for convenience of reference only and are not intended to be part of, or to affect the meaning or interpretation of, this Agreement. 

16. Delivery of Payment. If the Company has not received payment in full for any of the Purchased Notes purchased pursuant hereto
prior to 4:00 p.m., New York City time, on December 19, 2011, upon written request by the Company, the Purchaser shall surrender to the Company for cancellation such Purchased Notes for which payment has not been received. 

  
 23 

 If the foregoing correctly sets forth the agreement among the Company, the Guarantors and
the Purchaser, please indicate your acceptance in the space provided for that purpose below. 
  

			
	GMX RESOURCES INC.
		
	By:	 	 
		 	Name:
		 	Title:
	
	GUARANTORS:
	
	 ENDEAVOR PIPELINE INC.
 DIAMOND BLUE DRILLING CO.

		
	By:	 	 
		 	Name:
		 	Title:

 [Signature Page to Note Purchase Agreement] 

			
	Accepted:
		
	By:	 	 
		 	Name:
		 	Title:

 Address: 
 By
executing and delivering this Agreement, Purchaser represents that it is (at least one box must be checked): 
  

	 	 ̈	a “qualified institutional buyer” as defined in Rule 144A under the Securities Act; and/or 

 

	 	 ̈	an “accredited investor” as defined in Rule 501(a) under the Securities Act. 

[Signature Page to Note Purchase Agreement] 

 Exhibit I 
 Form of Indenture for the Notes 

 Exhibit II 
 Forms of Security Documents 

 Exhibit III 
 Form of Intercreditor Agreement 

 Exhibit IV 
 Forms of Registration Rights Agreements 

 Exhibit V 
 List of Subsidiaries of the Company and the Guarantors 
 ENDEAVOR
PIPELINE INC. 
 DIAMOND BLUE DRILLING CO. 
 ENDEAVOR GATHERING LLC 

 EXHIBIT VI 
 Form of Legal Opinions 

 EXHIBIT VII 
 OFFICER’S CERTIFICATE OF 
 GMX RESOURCES, INC. 

The undersigned,
[                    ], does hereby certify that he is the
[                    ] of GMX Resources Inc., an Oklahoma corporation (the “Company”). Reference is hereby made to the Support
Agreements, dated as of November 2, 2011 (each, a “Support Agreement” and collectively, the “Support Agreements”) by and between the Company and certain holders of its 11.375% senior notes due 2019 issued under the
Indenture, dated as of February 9, 2011, by and between the Company, as issuer, the Guarantors party thereto and The Bank of New York Trust Company, N.A., as Trustee. 
 Pursuant to Section 5 of each Support Agreement, the funding of the commitment of each Supporting Holder is subject to satisfaction of, among other things, the legal and documentary conditions
described on Exhibit B to each Support Agreement, attached hereto as Annex A. 
 I do hereby certify, in my
capacity as such officer and not in a personal capacity, on behalf of the Company, that all of the conditions set forth in Exhibit B (to the extent such conditions do not consist of the satisfaction of or approvals of the Supporting Holders
or their representatives) of each Support Agreement have been satisfied. 
 [Remainder of page intentionally left blank]

 IN WITNESS WHEREOF, the undersigned have executed this Officer’s Certificate as of this
19th day of December, 2011. 
  

			
	GMX RESOURCES INC.
		
	By:	 	 
	Name:	 	
	Title	 	

  
 2 

 ANNEX A 

Exhibit B to Support Agreement 
 Legal and Documentary Conditions 
 In addition to the conditions described in the
body of this Agreement, the obligations of Holder with respect to the Exchange Offer are subject to the satisfaction or waiver (in accordance with the terms of this Agreement) of the following additional conditions precedent: 

1. Exchange Offer. The Exchange Offer shall be consummated pursuant to the Transaction Documentation substantially simultaneously
with the purchase of the New Notes and no provision thereof shall have been amended or waived, in each case, in any material respect adverse to the Holder. 
 2. Financing Terms. The terms and conditions of the New Notes shall be consistent in all material respects with the terms set forth in this Agreement and in the Term Sheet and otherwise reasonably
satisfactory in all respects to Holder. 
 3. Absence of Defaults. There shall not exist any default or event of default
on the date of the issuance of the New Notes as defined in the indenture governing the New Notes after giving effect to the use of the proceeds of the New Notes. 
 4. Definitive Documentation. The Parties shall have executed and delivered (or be willing to execute and deliver) for the New Notes definitive documentation, including without limitation,
(a) note purchase agreements, containing a 10b-5 representation in connection with any transaction contemplated by the Exchange Offer and the Private Placement, including the Exchange Offer and agreed upon indemnities plus other terms,
consistent in all material respects with this Agreement, by and among the Company and the other parties thereto (including a representation by each purchaser thereunder that it is either a “qualified institutional buyer” or an institution
that is an “accredited investor”), except that as the Supporting Holders are not underwriters, there shall be no requirement for an offering memorandum or other offering documentation beyond the documentation and information necessary to
satisfy the requirements of Rule 144A(d)(4) promulgated under the Securities Act; (b) the indenture governing the New Notes consistent with the terms set forth in the Term Sheet and otherwise containing customary terms for the New Notes;
(c) pledge and security agreements covering the collateral for the New Notes and (d) intercreditor agreements reflecting Company’s ability to incur so-called “silent second-lien debt”, in each of cases (a) through
(d) in form and substance consistent in all material respects with this Agreement and otherwise reasonably satisfactory to Holder and the Company (collectively, the “Definitive Documentation”). The Holder shall also have
received customary closing certificates (including a solvency certificate of a financial officer as to the solvency of the Company and its subsidiaries, taken as a whole, after giving effect to the Exchange Offer and the Private Placement),
customary legal opinions, customary corporate documents, customary evidence of corporate authority, and customary certificates of good standing. 

 5. Representations and Warranties. The representations and warranties made by the
Company and its subsidiaries herein, or which are contained in any certificate furnished at any time under or in connection herein or under or in connection with the Transaction Documentation shall (i) with respect to representations and
warranties that contain a materiality qualification, be true and correct and (ii) with respect to representations and warranties that do not contain a materiality qualification, be true and correct in all material respects, in each case on and
as of the date of the issuance of the New Notes as if made on and as of such date (except for those which expressly relate to an earlier date). 
 6. Bankruptcy. There shall be no bankruptcy or insolvency proceedings pending with respect to the Company or any of its subsidiaries. 

7. Expenses. All expenses, including legal fees, required to be paid to the Holder under this Agreement shall have been paid in
full. 
 8. Litigation. Except as disclosed in the Definitive Documentation, there shall not have been instituted,
threatened or be pending against, or with respect to, the Company or any of its subsidiaries any action, injunction, proceeding, application, order, claim, counterclaim or investigation (whether formal or informal) (and there shall have been no
material adverse development to any action, application, claim, counterclaim or proceeding currently instituted, threatened or pending) before or by any stock exchange, court or any governmental, regulatory or administrative agency or
instrumentality, domestic or foreign, or by any other person, domestic or foreign, in connection with the Exchange Offer or the Private Placement that would or would reasonably be expected to (i) prohibit, prevent, restrict or delay
consummation of the Exchange Offer or the Private Placement, or (ii) impose burdensome restrictions on the transactions contemplated by the Exchange Offer and the Private Placement. 

9. PATRIOT Act. The Company shall have delivered all documentation and other information reasonably required by regulatory
authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including the PATRIOT Act, in any case, requested in writing by Holder at least three (3) Business Days prior to the closing date for
the issuance of the New Notes. 
 10. Collateral. All Uniform Commercial Code UCC-1 financing statements reasonably
necessary or desirable to create and perfect the first priority liens and security interests in respect of the collateral securing the New Notes shall have been delivered for filing, customary short-form security agreements with respect to
intellectual property shall have been executed and delivered to the collateral agent for filing with the U.S. Patent and Trademark Office and the U.S. Copyright Office and certificates representing the capital stock and membership interests (to the
extent issued and certificated) of the Company and any guarantors shall have been delivered to the collateral agent (or to its designated advisors) under the indenture governing the New Notes; provided that, to the extent the creation of any lien on
any collateral or perfection of such lien requires any action on the part of any third party (including, without limitation, delivery of reasonably satisfactory mortgages, title insurance policies, surveys and other customary documentation in
connection with real estate collateral) and is not provided on the closing date for the New Notes after the Company’s use of commercially reasonable efforts to do so (other than in respect of the filing of financing statements and the delivery
of short-form security agreements and certificates representing capital stock and membership interest, in each case as set forth above), the creation or perfection (as applicable) of such lien

  
 2 

 
shall not constitute a condition precedent to the issuance of the New Notes on the closing date thereof but such action shall be required to have been taken within a commercially reasonable time
after such closing date and in any event within 30 days thereafter, subject to exceptions to perfection requirements to be reasonably agreed. 
 11. Compliance with Laws. The issuance of the New Notes and other transactions contemplated hereby shall be in compliance in all material respects with all applicable laws and regulations and no
order, statute, rule, regulation, executive order, stay, decree, judgment or injunction shall have been proposed, enacted, entered, issued, promulgated, enforced or deemed applicable by any stock exchange, court or any governmental, regulatory or
administrative agency or instrumentally, that would or would reasonably be expected to (i) prohibit, prevent, restrict or delay consummation of such transactions or (ii) impose burdensome restrictions on such transactions. 

12. Discharge of Existing Debt. After giving effect to the Exchange Offer and the Private Placement, the Company and its
subsidiaries shall have (A) no outstanding indebtedness other than (i) up to $318 million of New Notes, (ii) Existing Notes that have not been tendered into the Exchange Offer in an aggregate principal amount not exceeding the amount
permitted to remain outstanding after the closing date under the terms of the Definitive Documentation and (iii) other indebtedness as permitted pursuant to the Term Sheet and the other Transaction Documentation; and (B) no liens in
respect of borrowed money, other than liens permitted by or expressly provided for under the indenture governing the New Notes or the other Transaction Documentation. 
 13. Additional Matters. The parties shall, in good faith, work and cooperate together on the corporate, tax and regulatory aspects of the Exchange Offer and the Private Placement so that the
resolution of such matters is reasonably satisfactory to the Parties. 

  
 3 

 Exhibit VIII 

SOLVENCY CERTIFICATE 
 I, James A. Merrill, the duly authorized and acting Chief Financial Officer of GMX RESOURCES INC., an Oklahoma corporation (the “Company”), pursuant to the purchase agreements, dated as
of December 19, 2011 (each, a “Purchase Agreement” and collectively, the “Purchase Agreements”) by and between the Company and the Purchasers, do hereby certify in the name of and on behalf of the Company and
its Subsidiaries, and in my capacity as Chief Financial Officer of the Company, but without any personal liability, as follows (capitalized terms used herein and not otherwise defined herein shall have the meanings ascribed thereto in the Purchase
Agreement): 
 1. On the date hereof and after giving effect to the Transactions: 

 

	 	(a)	the fair value of the assets of the Company and its Subsidiaries, on a consolidated basis, is greater than the total amount of liabilities, including contingent,
subordinated, absolute, fixed, matured or unmatured and liquidated or unliquidated liabilities, of the Company and its Subsidiaries, on a consolidated basis; 

 

	 	(b)	the present fair saleable value of the assets of the Company and its Subsidiaries, on a consolidated basis, exceeds (i) the amount that will be required to pay the
probable liability of the Company and its Subsidiaries, on a consolidated basis, on the debts of the Company and its Subsidiaries, on a consolidated basis, as such debts become absolute and matured and (ii) the total liabilities of the Company
and its Subsidiaries, on a consolidated basis (including, without limitation, subordinated, unmatured, unliquidated and known contingent liabilities); 

  

	 	(c)	the Company and its Subsidiaries, on a consolidated basis, are able to pay their debts and other liabilities, contingent obligations and other commitments as they
mature in the normal course of business; 

  

	 	(d)	the Company and its Subsidiaries, on a consolidated basis, are not engaged in business or any transaction, or are about to engage in business or any transaction, for
which their property would constitute unreasonably small capital; and 

  

	 	(e)	the Company and its Subsidiaries, on a consolidated basis, are not “insolvent” as such term is defined in Section 101(32) of Title 11 of the United
States Code, 11 U.S.C. Section 101, et. seq. 

 2. In consummating the Transactions, neither the
Company nor any of its Subsidiaries intends to hinder, delay or defraud either present or future creditors of the Company or any of its Subsidiaries. 

 3. In reaching the conclusions set forth in this Certificate, I have made such investigation
and inquiries as to the financial condition of the Company and its Subsidiaries as I deem necessary and prudent for the purpose of providing this Certificate, including without limitation: 

 

	 	(a)	the cash and other current assets of the Company and its Subsidiaries, on a consolidated basis; and 

 

	 	(b)	all contingent liabilities of the Company and its Subsidiaries, on a consolidated basis, including, without limitation, claims arising out of pending or threatened
litigation against any such entity, and in so doing, have computed the amount of such liabilities as the amount which, in light of all the facts and circumstances existing on the date hereof, represents the amount that can reasonably be expected to
become an actual or matured liability. 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK] 

  
 2 

 IN WITNESS WHEREOF, I have executed this Certificate as of the date first above
written. 
  

					
	By:	 	 
		 	Name:	 	James A. Merrill
		 	Title:	 	Chief Financial Officer

  
 3Placement Agent Agreement

 Exhibit 10.1 
 AMPIO PHARMACEUTICALS, INC. 
 Common Stock (par value $0.0001)

 PLACEMENT AGENT AGREEMENT 
 December 20, 2011 
 Fordham Financial Management, Inc. 

Summer Street Research Partners 
 Emerging Growth
Equities, Ltd. 
 c/o Fordham Financial Management, Inc. 
 14 Wall Street 
 New York, New York 10005 
 Dear Sirs: 
 1. INTRODUCTION. Ampio
Pharmaceuticals, Inc., a Delaware corporation (the “Company”), proposes to issue and sell to the purchasers, pursuant to the terms and conditions of this Placement Agent Agreement (this “Agreement”) and the
Subscription Agreements in the form of Exhibit A attached hereto (the “Subscription Agreements”) entered into with the purchasers identified therein (each a “Purchaser” and, collectively, the
“Purchasers”), up to an aggregate of 2,220,255 shares of common stock (each a “Share”, and collectively, the “Shares”), $0.0001 par value per share (the “Common Stock”) of the
Company. The Placement Agents (defined below) may retain other brokers or dealers to act as sub-agents or selected-dealers on their behalf in connection with the Offering (as defined below). 

2. AGREEMENT TO ACT AS PLACEMENT AGENTS;
PLACEMENT OF SHARES. On the basis of the representations, warranties and agreements of the Company herein contained, and subject to all the terms and conditions of this Agreement: 

2.1 Fordham Financial Management, Inc. (“FFM” or the “Representative”), Summer Street
Research Partners (“SCP”), and Emerging Growth Equities, Ltd. (“EGE”, and together with the Representative and SCP, the “Placement Agents”) shall be the exclusive placement agents in connection with
the offering and sale of the Shares from the Company (the “Offering”). Until the Closing Date (as defined in Section 4 hereof), the Company shall not, without the prior written consent of the Representative, solicit or
accept offers to purchase any Shares otherwise than through the Placement Agents. 
 2.2 The Placement Agents
will act on a reasonable best efforts basis and the Company agrees and acknowledges that there is no guarantee of the successful placement of the Shares, or any portion thereof, in the prospective Offering. The Placement Agents shall use
commercially reasonable efforts to assist the Company in obtaining performance by each Purchaser whose offer to purchase Shares was solicited by the Placement Agents and accepted by the Company, but the Placement Agents shall not, except as
otherwise provided in this Agreement, be obligated to disclose the identity of any potential purchaser or have any liability to the Company in the event any such purchase is not consummated for any reason. Under no circumstances will the

 
Placements Agent be obligated to underwrite or purchase any Shares for their respective accounts and, in soliciting purchases of Shares, each Placement Agent will act solely as the Company’s
agent and not as a principal. Notwithstanding the foregoing and except as otherwise provided in Section 2.3, it is understood and agreed that the Placement Agents (or their affiliates) may, solely at their discretion and without any
obligation to do so, purchase Shares from the Company as principals. 
 2.3 Subject to the provisions of this
Section 2, offers for the purchase of Shares will be solicited by the Placement Agents as agent for the Company at such times and in such amounts as the Placement Agents deem advisable. Each Placement Agent shall communicate to the
Company, orally or in writing, each reasonable offer to purchase the Shares received by it as agent of the Company. The Company shall have the sole right to accept offers to purchase the Shares and may reject any such offer, in whole or in part.
Each Placement Agent has the right, in its discretion reasonably exercised, without notice to the Company, to reject any offer to purchase any of the Shares received by it, in whole or in part, and any such rejection shall not be deemed a breach of
this Agreement. 
 2.4 The Shares are being sold to the Purchasers at a purchase price of $4.25 per Share. The
purchases of the Shares by the Purchasers shall be evidenced by the execution of the Subscription Agreements by each of the Purchasers and the Company. 
 2.5 As compensation for services rendered, on the Closing Date (as defined in Section 4 hereof), the Company shall pay to the Representative on behalf of the Placement Agents, by wire transfer
of immediately available funds to an account or accounts designated by the Representative, an aggregate amount (the “Placement Fee”) equal to seven percent (7.0%) of the gross proceeds received by the Company from the sale of
the Shares on the Closing Date, and an additional non-accountable expense allowance in an amount equal to one percent (1.0%) of the gross proceeds received by the Company from the sale of the Shares on the Closing Date (the “Expense
Allowance”). The Representative acknowledges that the Company has advanced $50,000 to the Representative, which will be applied against payment of the Expense Allowance. 

2.6 No Shares which the Company has agreed to sell pursuant to this Agreement and the Subscription Agreements shall be
deemed to have been purchased and paid for, or sold by the Company, until such Shares shall have been delivered to the Purchaser thereof against payment by such Purchaser. If the Company shall default in its obligations to deliver any Shares to a
Purchaser whose offer it has accepted, the Company shall indemnify and hold the Placement Agents harmless against any loss, claim, damage or expense arising from or as a result of such default by the Company in accordance with the procedures set
forth in Section 8(c) herein. 
 2.7 The term of the Placement Agents’ exclusive engagement will
be for a period of 1 month, which may be extended for an additional period of one month upon mutual written agreement of the Representative and the Company (the “Exclusive Term”). Notwithstanding anything to the contrary contained
herein, the provisions concerning confidentiality, indemnification and contribution contained herein and the 

  
 2 

 
Company’s obligations contained in the indemnification provisions will survive any expiration or termination of this Agreement, and the Company’s obligation to pay fees actually earned
and payable and to reimburse expenses actually incurred and reimbursable pursuant to Section 10 hereof and which are permitted to be reimbursed under FINRA Rule 5110(f)(2)(D), will survive any expiration or termination of this Agreement.
Nothing in this Agreement shall be construed to limit the ability of the Placement Agents or their affiliates to pursue, investigate, analyze, invest in, or engage in investment banking, financial advisory or any other business relationship with
persons and entities other than the Company. 
 3. REPRESENTATIONS AND
WARRANTIES OF THE COMPANY. The Company represents and warrants to, and agrees with, the Placement Agents and the Purchasers that: 

(a) The Company has prepared and filed in conformity with the requirements of the Securities Act of 1933, as amended (the
“Securities Act”), and published rules and regulations thereunder (the “Rules and Regulations”) adopted by the Securities and Exchange Commission (the “Commission”) a “shelf” Registration
Statement (as hereinafter defined) on Form S-3 (File No. 333-177116), which became effective as of October 28, 2011 (the “Effective Date”), including a base prospectus relating to the securities registered pursuant to the
Registration Statement (the “Base Prospectus”), and such amendments and supplements thereto as may have been required to the date of this Agreement. The term “Registration Statement” as used in this Agreement means
the registration statement (including all exhibits, financial schedules and all documents and information deemed to be a part of the Registration Statement pursuant to Rule 430A of the Rules and Regulations), as amended and/or supplemented to the
date of this Agreement, including the Base Prospectus. The Registration Statement is effective under the Securities Act and no stop order preventing or suspending the effectiveness of the Registration Statement or suspending or preventing the use of
the Prospectus has been issued by the Commission and no proceedings for that purpose have been instituted or, to the knowledge of the Company, are threatened by the Commission. The Company, if required by the Rules and Regulations of the Commission,
will file the Prospectus (as defined below), with the Commission pursuant to Rule 424(b) of the Rules and Regulations. The term “Prospectus” as used in this Agreement means the prospectus, in the form in which it is to be filed with
the Commission pursuant to Rule 424(b) of the Rules and Regulations, or, if the prospectus is not to be filed with the Commission pursuant to Rule 424(b), the prospectus in the form included as part of the Registration Statement as of the Effective
Date, except that if any revised prospectus or prospectus supplement shall be provided to the Placement Agents by the Company for use in connection with the Offering which differs from the Prospectus (whether or not such revised prospectus or
prospectus supplement is required to be filed by the Company pursuant to Rule 424(b) of the Rules and Regulations), the term “Prospectus” shall refer to such revised prospectus or prospectus supplement, as the case may be, from and
after the time it is first provided to the Placement Agents for such use. Any preliminary prospectus or prospectus subject to completion included in the Registration Statement or filed with the Commission pursuant to Rule 424 of the Rules and
Regulations is hereafter called a “Preliminary Prospectus.” Any reference herein to the Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include the

  
 3 

 
documents incorporated by reference therein pursuant to Item 12 of Form S-3 which were filed under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), on
or before the last to occur of the Effective Date, the date of the Preliminary Prospectus, or the date of the Prospectus, and any reference herein to the terms “amend,” “amendment,” or “supplement” with respect to the
Registration Statement, any Preliminary Prospectus or the Prospectus shall be deemed to refer to and include (i) the filing of any document under the Exchange Act after the Effective Date, the date of such Preliminary Prospectus or the date of
the Prospectus, as the case may be, which is incorporated by reference and (ii) any such document so filed. If the Company has filed an abbreviated registration statement to register additional securities pursuant to Rule 462(b) under the Rules
(the “462(b) Registration Statement”), then any reference herein to the Registration Statement shall also be deemed to include such 462(b) Registration Statement. 

(b) As of the Applicable Time (as defined below) and as of the Closing Date, the Pricing Prospectus (as defined below) and
the information included on Schedule A hereto, all considered together (collectively, the “General Disclosure Package”), does not include or will not include, any untrue statement of a material fact or omitted or as of the
Closing Date will omit, to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representations or
warranties as to information contained in or omitted from the General Disclosure Package, in reliance upon, and in conformity with, written information furnished to the Company by the Placement Agents specifically for inclusion therein, which
information the parties hereto agree is limited to the Placement Agents’ Information (as defined in Section 18). As used in paragraph (b) and elsewhere in this Agreement: 

“Applicable Time” means 5:30 P.M., New York time, on the date of this Agreement. 

“Pricing Prospectus” means the Preliminary Prospectus, if any, and the Base Prospectus, each as amended and
supplemented immediately prior to the Applicable Time, including any document incorporated by reference therein and any prospectus supplement deemed to be a part thereof. 

(c) No order preventing or suspending the use of any Preliminary Prospectus or the Prospectus relating to the Offering has
been issued by the Commission, and no proceeding for that purpose or pursuant to Section 8A of the Securities Act has been instituted or threatened by the Commission, and each Preliminary Prospectus (if any), at the time of filing thereof,
conformed in all material respects to the requirements of the Securities Act and the Rules and Regulations, and did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to
make the statements therein, in the light of the circumstances under which they were made, not misleading; provided, however, that the Company makes no representations or warranties as to information contained in or omitted from any
Preliminary Prospectus, in reliance upon, and in conformity with, written information furnished to the Company by the Placement Agents specifically for inclusion therein, which information the parties hereto agree is limited to the Placement
Agents’ Information. 

  
 4 

 (d) At the time the Registration Statement became or becomes effective, at
the date of this Agreement and at the Closing Date, the Registration Statement conformed and will conform in all material respects to the requirements of the Securities Act and the Rules and Regulations and did not and will not contain any untrue
statement of a material fact or omit to state any material fact required to be stated therein or necessary to make the statements therein not misleading; the Prospectus, at the time the Prospectus was issued and at the Closing Date, conformed and
will conform in all material respects to the requirements of the Securities Act and the Rules and Regulations and did not and will not contain an untrue statement of a material fact or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they were made, not misleading; provided, however, that the foregoing representations and warranties in this paragraph (d) shall not apply to information contained in
or omitted from the Registration Statement or the Prospectus in reliance upon, and in conformity with, written information furnished to the Company by the Placement Agents specifically for inclusion therein, which information the parties hereto
agree is limited to the Placement Agents’ Information. 
 (e) The documents incorporated by reference in the
Prospectus, when they became effective or were filed with the Commission, as the case may be, conformed in all material respects to the requirements of the Securities Act or the Exchange Act, as applicable, and the rules and regulations of the
Commission thereunder and none of such documents contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under
which they were made, not misleading. 
 (f) The Company has not, directly or indirectly, distributed and will
not distribute any offering material in connection with the Offering other than any Preliminary Prospectus, the Prospectus and other materials, if any, permitted under the Securities Act. 

(g) The Company and each of its subsidiaries (as defined in Section 15) has been duly organized and are
validly existing as corporations or other legal entities in good standing (or the foreign equivalent thereof) under the laws of their respective jurisdictions of organization. The Company and each of its subsidiaries are duly qualified to do
business and are in good standing as foreign corporations or other legal entities in each jurisdiction in which their respective ownership or lease of property or the conduct of their respective businesses requires such qualification and have all
power and authority (corporate or other) necessary to own or hold their respective properties and to conduct the businesses in which they are engaged, except where the failure to so qualify or have such power or authority (i) would not have,
singly or in the aggregate, a material adverse effect on the condition (financial or otherwise), results of operations, assets, business of the Company and its subsidiaries taken as a whole, or (ii) impair in any material respect the ability of
the Company to perform its obligations under this Agreement or to consummate any transactions contemplated by the Agreement, the General Disclosure Package or the Prospectus (any such effect as described in clauses (i) or (ii), a
“Material Adverse Effect”). The Company owns or controls, directly or indirectly, only the following corporations, partnerships, limited partnerships, limited 

  
 5 

 
liability companies, associations or other entities: DMI Life Sciences, Inc., a Delaware corporation, and DMI Acquisition Corp., a Delaware corporation, and DMI BioSciences, Inc., a Colorado
corporation. 
 (h) The Company has the full right, power and authority to enter into this Agreement and each of
the Subscription Agreements, and to perform and to discharge its obligations hereunder and thereunder, and each of this Agreement and each of the Subscription Agreements has been duly authorized, executed and delivered by the Company, and
constitutes a valid and binding obligation of the Company enforceable in accordance with its terms, except as rights to indemnity hereunder may be limited by federal or state securities laws and except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization or similar laws affecting the rights of creditors generally and subject to general principals of equity. 
 (i) The Company has an authorized capitalization as set forth in the Pricing Prospectus, and all of the issued shares of capital stock of the Company have been duly and validly authorized and issued, are
fully paid and non-assessable, have been issued in compliance with federal and state securities laws, and conform to the description thereof contained in the General Disclosure Package and the Prospectus. As of December 19, 2011, there were
28,861,179 shares of Common Stock issued and outstanding and no shares of Preferred Stock, par value $0.0001 per share of the Company issued and outstanding and 33,371,061 shares of Common Stock were issuable upon the exercise of all options,
warrants and convertible securities outstanding as of such date. Since such date, the Company has not issued any securities, other than Common Stock of the Company issued pursuant to the exercise of stock options previously outstanding under the
Company’s stock option plans or the issuance of restricted Common Stock pursuant to employee stock purchase plans. All of the Company’s options, warrants and other rights to purchase or exchange any securities for shares of the
Company’s capital stock have been duly authorized and validly issued and were issued in compliance with US federal and state securities laws. The Shares to be issued and sold by the Company under this Agreement and the Subscription Agreements
have been duly authorized and, when issued, delivered and paid for in accordance with the terms of this Agreement and the Subscription Agreements, will have been validly issued and will be fully paid and nonassessable and will conform to the
description thereof in the General Disclosure Package and the Prospectus, and will be free of statutory and contractual preemptive rights, registration rights, resale rights, rights of first refusal and similar rights, other than as described in the
General Disclosure Package and the Prospectus. None of the outstanding shares of Common Stock was issued in violation of any preemptive rights, rights of first refusal or other similar rights to subscribe for or purchase securities of the Company.
There are no authorized or outstanding shares of capital stock, options, warrants, preemptive rights, rights of first refusal or other rights to purchase, or equity or debt securities convertible into or exchangeable or exercisable for, any capital
stock of the Company or any of its subsidiaries other than those described above or accurately described in the General Disclosure Package. The description of the Company’s stock option, stock bonus and other stock plans or arrangements, and
the options or other rights granted thereunder, as described in the General Disclosure Package and the Prospectus, accurately and fairly present the information required to be shown with respect to such plans, arrangements, options and rights.

  
 6 

 (j) All the outstanding shares of capital stock of each subsidiary of the
Company have been duly authorized and validly issued, are fully paid and nonassessable and, except to the extent set forth in the General Disclosure Package or the Prospectus, are owned by the Company directly or indirectly through one or more
wholly-owned subsidiaries, free and clear of any claim, lien, encumbrance, security interest, restriction upon voting or transfer or any other claim of any third party. 

(k) The execution, delivery and performance of this Agreement and the Subscription Agreements by the Company, and the
issuance and sale of the Shares by the Company and the consummation of the transactions contemplated hereby and thereby will not (with or without notice or lapse of time or both) (i) conflict with or result in a breach or violation of any of
the terms or provisions of, constitute a default or Debt Repayment Triggering Event (as defined below) under, give rise to any right of termination or other right or the cancellation or acceleration of any right or obligation or loss of a benefit
under, or give rise to the creation or imposition of any lien, encumbrance, security interest, claim or charge upon any property or assets of the Company or any subsidiary pursuant to, any indenture, mortgage, deed of trust, loan agreement or other
agreement or instrument to which the Company or any of its subsidiaries is a party or by which the Company or any of its subsidiaries is bound or to which any of the property or assets of the Company or any of its subsidiaries is subject,
(ii) nor will such actions result in any violation of the provisions of the charter or by-laws (or analogous governing instruments, as applicable) of the Company or any of its subsidiaries or (iii) result in any violation of any law,
statute, rule, regulation, judgment, order or decree of any court or governmental agency or body, domestic or foreign, having jurisdiction over the Company or any of its subsidiaries or any of their properties or assets; except in the cases of
clauses (i) and (iii) to the extent that any such conflict, breach, violation or default would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. A “Debt Repayment Triggering
Event” means any event or condition that gives, or with the giving of notice or lapse of time would give the holder of any note, debenture or other evidence of indebtedness (or any person acting on such holder’s behalf) the right to
require the repurchase, redemption or repayment of all or a portion of such indebtedness by the Company or any of its subsidiaries. 
 (l) Except for the registration of the Shares under the Securities Act and such consents, approvals, authorizations, registrations or qualifications as may be required under the Exchange Act and
applicable state or foreign securities laws, the Financial Industry Regulatory Authority (“FINRA”) and the Nasdaq Capital Market (“Nasdaq CM”) in connection with the offering and sale of the Shares by the Company,
no consent, approval, authorization or order of, or filing, qualification or registration with, any court or governmental agency or body, foreign or domestic having jurisdiction over the Company or any of its properties or assets, which has not been
made, obtained or taken and is not in full force and effect, is required for the execution, delivery and performance of this Agreement and the Subscription Agreements by the Company, the offer or sale of the Shares or the consummation of the
transactions contemplated hereby or thereby. 

  
 7 

 (m) To the Company’s knowledge, Ehrhardt Keefe Steiner &
Hottman PC, who have certified certain financial statements and related schedules included or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus, is an independent registered public accounting
firm as required by the Securities Act and the Rules and Regulations and the Public Company Accounting Oversight Board (United States) (the “PCAOB”). 

(n) The financial statements, together with the related notes and schedules, included or incorporated by reference in the
General Disclosure Package, the Prospectus and in the Registration Statement fairly present the financial position and the results of operations and changes in financial position of the Company and its consolidated subsidiaries and other
consolidated entities at the respective dates or for the respective periods therein specified. Such statements and related notes and schedules have been prepared in accordance with the generally accepted accounting principles in the United States
(“GAAP”) applied on a consistent basis throughout the periods involved except as may be set forth in the related notes included or incorporated by reference in the General Disclosure Package. The financial statements, together with
the related notes and schedules, included or incorporated by reference in the General Disclosure Package and the Prospectus comply in all material respects with the Securities Act, the Exchange Act, and the Rules and Regulations and the rules and
regulations under the Exchange Act. No other financial statements or supporting schedules or exhibits are required by the Securities Act or the Rules and Regulations to be described, or included or incorporated by reference in the Registration
Statement, the General Disclosure Package or the Prospectus. There is no pro forma or as adjusted financial information which is required to be included or incorporated by reference in the Registration Statement, the General Disclosure Package, or
and the Prospectus in accordance with the Securities Act and the Rules and Regulations which has not been included or incorporated as so required. 
 (o) Neither the Company nor any of its subsidiaries has sustained, since the date of the latest audited financial statements included or incorporated by reference in the General Disclosure Package, any
material loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth or
contemplated in the General Disclosure Package; and, since such date, there has not been any change in the capital stock or long-term debt of the Company or any of its subsidiaries, or any material adverse changes, or any development involving a
prospective material adverse change, in or affecting the business, assets, general affairs, management, financial position, stockholders’ equity or results of operations of the Company and its subsidiaries taken as a whole, otherwise than as
set forth or contemplated in the General Disclosure Package. 
 (p) Except as set forth in the General Disclosure
Package, there is no legal or governmental action, suit, claim or proceeding pending to which the Company or any of its subsidiaries is a party or of which any property or assets of the Company or any of its

  
 8 

 
subsidiaries is the subject which is required to be described in the Registration Statement, the General Disclosure Package or the Prospectus or a document incorporated by reference therein and
is not described therein, or which, singly or in the aggregate, if determined adversely to the Company or any of its subsidiaries, could have a Material Adverse Effect or prevent the consummation of the transactions contemplated hereby; and to the
Company’s knowledge, no such proceedings are threatened or contemplated by governmental authorities or threatened by others. 
 (q) Neither the Company nor any of its subsidiaries is in (i) violation of its charter or by-laws (or analogous governing instrument, as applicable), (ii) default in any respect, and no event
has occurred which, with notice or lapse of time or both, would constitute such a default, in the due performance or observance of any term, covenant or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other
agreement or instrument to which it is a party or by which it is bound or to which any of its property or assets is subject or (iii) violation in any respect of any law, ordinance, governmental rule, regulation or court order, decree or
judgment to which it or its property or assets may be subject except, in the case of clauses (ii) and (iii) of this paragraph (q), for any violations or defaults which, singly or in the aggregate, would not have a Material Adverse
Effect. 
 (r) The Company and each of its subsidiaries possess all licenses, certificates, authorizations and
permits issued by, and have made all declarations and filings with, the appropriate local, state, federal or foreign regulatory agencies or bodies which are necessary or desirable for the ownership of their respective properties or the conduct of
their respective businesses as described in the General Disclosure Package and the Prospectus (collectively, the “Governmental Permits”) except where any failures to possess or make the same, singly or in the aggregate, would not
have a Material Adverse Effect. The Company and its subsidiaries are in compliance with all such Governmental Permits; all such Governmental Permits are valid and in full force and effect, except where the validity or failure to be in full force and
effect would not, singly or in the aggregate, have a Material Adverse Effect. Neither the Company nor any subsidiary has received notification of any revocation or modification (or proceedings related thereto) of any such Governmental Permit and the
Company has no reason to believe that any such Governmental Permit will not be renewed. 
 (s) Neither the
Company nor any of its subsidiaries is or, after giving effect to the Offering and the application of the proceeds thereof as described in the General Disclosure Package and the Prospectus, will become an “investment company” within the
meaning of the Investment Company Act of 1940, as amended, and the rules and regulations of the Commission thereunder. 
 (t) Neither the Company, its subsidiaries, nor to the Company’s knowledge, any of the Company’s or its subsidiaries’ officers, directors or affiliates has taken or will take, directly or
indirectly, any action designed or intended to stabilize or manipulate the price of any security of the Company, or which caused or resulted in, or which might in the future reasonably be expected to cause or result in, stabilization or manipulation
of the price of any security of the Company. 

  
 9 

 (u) The Company and its subsidiaries own or possesses the right to use all
patents, trademarks, trademark registrations, service marks, service mark registrations, trade names, copyrights, licenses, inventions, software, databases, know-how, Internet domain names, trade secrets and other unpatented and/or unpatentable
proprietary or confidential information, systems or procedures, and other intellectual property (collectively, “Intellectual Property”) necessary to carry on their respective businesses as currently conducted, and as proposed to be
conducted and described in the General Disclosure Package and the Prospectus, and the Company is not aware of any claim to the contrary or any challenge by any other person to the rights of the Company and its subsidiaries with respect to the
foregoing except for those that could not have a Material Adverse Effect. The Intellectual Property licenses described in the General Disclosure Package and the Prospectus are valid, binding upon, and enforceable by or against the parties thereto in
accordance to its terms. The Company and each of its subsidiaries has complied in all material respects with, and is not in breach nor has received any asserted or threatened claim of breach of, any Intellectual Property license, and the Company has
no knowledge of any breach or anticipated breach by any other person to any Intellectual Property license except where such breach, singularly or in the aggregate, would not have a Material Adverse Effect. Except as described in the General
Disclosure Package, to the knowledge of the Company, no claim has been made against the Company or any of its subsidiaries alleging the infringement by the Company or any of its subsidiaries of any patent, trademark, service mark, trade name,
copyright, trade secret, license in or other intellectual property right or franchise right of any person except to the extent that any such claim does not have a Material Adverse Effect. The Company and each of its subsidiaries has taken all
reasonable steps to protect, maintain and safeguard its rights in all Intellectual Property, including the execution of appropriate nondisclosure and confidentiality agreements. The consummation of the transactions contemplated by this Agreement
will not result in the loss or impairment of or payment of any additional amounts with respect to, nor require the consent of any other person in respect of, the Company’s or any of its subsidiaries’ right to own, use, or hold for use any
of the Intellectual Property as owned, used or held for use in the conduct of the businesses as currently conducted. 
 (v) The Company and each of its subsidiaries have good and marketable title in fee simple to, or have valid rights to lease or otherwise use, all items of real or personal property, which are material to
the business of the Company and its subsidiaries taken as a whole, in each case free and clear of all liens, encumbrances, security interests, claims and defects that do not, singly or in the aggregate, materially affect the value of such property
and do not interfere with the use made and proposed to be made of such property by the Company or any of its subsidiaries; and all of the leases and subleases material to the business of the Company and its subsidiaries, considered as one
enterprise, and under which the Company or any of its subsidiaries holds properties described in the General Disclosure Package and the Prospectus, are in full force and effect, and neither the Company nor any subsidiary has received any notice of
any material claim of any sort that has been asserted by anyone adverse to the rights of the Company or any subsidiary under any of the leases or subleases mentioned above, or affecting or questioning the rights of the Company or such subsidiary to
the continued possession of the leased or subleased premises under any such lease or sublease. 

  
 10 

 (w) No labor disturbance by the employees of the Company or any of its
subsidiaries exists or, to the best of the Company’s knowledge, is imminent, and the Company is not aware of any existing or imminent labor disturbance by the employees of any of its or its subsidiaries’ principal suppliers, manufacturers,
customers or contractors, that could reasonably be expected, singly or in the aggregate, to have a Material Adverse Effect. The Company is not aware that any key employee or significant group of employees of the Company or any subsidiary plans to
terminate employment with the Company or any such subsidiary. 
 (x) No “prohibited transaction” (as
defined in Section 406 of the Employee Retirement Income Security Act of 1974, as amended, including the regulations and published interpretations thereunder (“ERISA”), or Section 4975 of the Internal Revenue Code of 1986,
as amended from time to time (the “Code”)) or “accumulated funding deficiency” (as defined in Section 302 of ERISA) or any of the events set forth in Section 4043(b) of ERISA (other than events with respect to
which the thirty (30)-day notice requirement under Section 4043 of ERISA has been waived) has occurred or could reasonably be expected to occur with respect to any employee benefit plan of the Company or any of its subsidiaries which could,
singly or in the aggregate, have a Material Adverse Effect. Each employee benefit plan of the Company or any of its subsidiaries is in compliance in all material respects with applicable law, including ERISA and the Code. The Company and its
subsidiaries have not incurred and could not reasonably be expected to incur liability under Title IV of ERISA with respect to the termination of, or withdrawal from, any pension plan (as defined in ERISA). Each pension plan for which the Company or
any of its subsidiaries would have any liability that is intended to be qualified under Section 401(a) of the Code is so qualified, and nothing has occurred, whether by action or by failure to act, which could, singly or in the aggregate, cause
the loss of such qualification. 
 (y) The Company and its subsidiaries are in compliance with all foreign,
federal, state and local statutes, rules, laws and regulations relating to the use, treatment, storage and disposal of hazardous or toxic substances, materials or wastes and the protection of health and safety or the environment, which are
applicable to their properties, assets, businesses and operations (“Environmental Laws”), except where the failure to comply would not, singularly or in the aggregate, have a Material Adverse Effect. There has been no use, storage,
generation, transportation, handling, treatment, disposal, discharge, emission, or other release of any kind of hazardous or toxic substances, materials or wastes by, due to, or caused by the Company or any of its subsidiaries (or, to the
Company’s knowledge, any other entity for whose acts or omissions the Company or any of its subsidiaries is or may otherwise be liable) upon any of the property now or previously owned, leased, or operated by the Company or any of its
subsidiaries, or upon any other property, in violation of, or which would give rise to any liability under, any Environmental Law, except for any violation or liability which would not have, singularly or in the aggregate with all such violations
and liabilities, a Material Adverse Effect; and there has been no disposal, discharge, emission or other release of any kind onto such property or into the environment of any hazardous or toxic substances, materials or wastes with respect to which
the Company has knowledge, except for any such disposal, discharge, emission, or other release of any kind which 

  
 11 

 
would not have, singularly or in the aggregate with all such disposals, discharges, emissions and other releases, a Material Adverse Effect. In the ordinary course of business, the Company and
its subsidiaries conduct periodic reviews of the effect of Environmental Laws on their business and assets, as part of which they identify and evaluate associated costs and liabilities (including, without limitation, any capital or operating
expenditures required for clean-up, closure of properties or compliance with Environmental Laws and Governmental Permits issued thereunder, any related constraints on operating activities and any potential liabilities to third parties). On the basis
of such reviews, the Company and its subsidiaries have reasonably concluded that such associated costs and liabilities would not have, singularly or in the aggregate, a Material Adverse Effect. 

(z) The Company and its subsidiaries, each (i) has timely filed all necessary federal, state, local and foreign tax
returns, and all such returns were true, complete and correct, (ii) has paid all federal, state, local and foreign taxes, assessments, governmental or other charges due and payable for which it is liable, including, without limitation, all
sales and use taxes and all taxes which the Company or any of its subsidiaries is obligated to withhold from amounts owing to employees, creditors and third parties, and (iii) does not have any tax deficiency or claims outstanding or assessed
or, to its knowledge, proposed against any of them, except those, in each of the cases described in clauses (i), (ii) and (iii) of this paragraph (z), that would not, singly or in the aggregate, have a Material Adverse Effect. The
Company and its subsidiaries, each has not engaged in any transaction which is a corporate tax shelter or which could be characterized as such by the Internal Revenue Service or any other taxing authority. The accruals and reserves on the books and
records of the Company and its subsidiaries in respect of tax liabilities for any taxable period not yet finally determined are adequate to meet any assessments and related liabilities for any such period, and since December 31, 2010 the
Company and its subsidiaries each has not incurred any liability for taxes other than in the ordinary course. 

(aa) The Company and the subsidiaries carry or are covered by insurance against such losses and risks and in such amounts
as are prudent and customary in the respective businesses and industries in which the Company and its subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. Neither the Company nor any Subsidiary has any
reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business at a cost that would not have a
Material Adverse Effect. 
 (bb) The Company and its subsidiaries each maintains a system of internal accounting
and other controls sufficient to provide reasonable assurances that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with GAAP and to maintain accountability for assets; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability
for assets is compared with existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as described in the General Disclosure Package, since the end of the

  
 12 

 
Company’s most recent audited fiscal year, there has been (A) no material weakness in the Company’s internal control over financial reporting (whether or not remediated) and
(B) no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting. 

(cc) The minute books of the Company have been made available to the Placement Agents and counsel for the Placement
Agents, and such books (i) contain a complete summary of all meetings and actions of the board of directors (including each board committee) and shareholders of the Company (or analogous governing bodies and interest holders, as applicable),
since the time of its incorporation through the date of the latest meeting and action, and (ii) accurately in all material respects reflect all transactions referred to in such minutes. 

(dd) There is no franchise, lease, contract, agreement or document required by the Securities Act or by the Rules and
Regulations to be described in the General Disclosure Package and in the Prospectus or a document incorporated by reference therein or to be filed as an exhibit to the Registration Statement or a document incorporated by reference therein which is
not described or filed therein as required; and all descriptions of any such franchises, leases, contracts, agreements or documents contained in the Registration Statement or in a document incorporated by reference therein are accurate and complete
descriptions of such documents in all material respects. Other than as described in the General Disclosure Package, no such franchise, lease, contract or agreement has been suspended or terminated for convenience or default by the Company or any of
the other parties thereto, and neither the Company nor any of its subsidiaries has received notice nor does the Company have any other knowledge of any such suspensions or terminations or pending or threatened suspension or termination, except for
such pending or threatened suspensions or terminations that would not reasonably be expected to, singly or in the aggregate, have a Material Adverse Effect. 
 (ee) No relationship, direct or indirect, exists between or among the Company and any of its subsidiaries on the one hand, and the directors, officers, stockholders (or analogous interest holders),
customers or suppliers of the Company or any of its subsidiaries or any of their affiliates on the other hand, which is required to be described in the General Disclosure Package and the Prospectus or a document incorporated by reference therein and
which is not so described. 
 (ff) No person or entity has the right to require registration of shares of Common
Stock or other securities of the Company or any of its subsidiaries because of the filing or effectiveness of the Registration Statement or otherwise, except for persons and entities who have expressly waived such right in writing or who have been
given timely and proper written notice and have failed to exercise such right within the time or times required under the terms and conditions of such right. Except as described in the General Disclosure Package, there are no persons with
registration rights or similar rights to have any securities registered by the Company or any of its subsidiaries under the Securities Act, except where the failure to so register would not be expected to, singularly or in the aggregate, have a
Material Adverse Effect. 

  
 13 

 (gg) Neither the Company nor any of its subsidiaries own any “margin
securities” as that term is defined in Regulation U of the Board of Governors of the Federal Reserve System (the “Federal Reserve Board”), and none of the proceeds of the sale of the Shares will be used, directly or indirectly,
for the purpose of purchasing or carrying any margin security, for the purpose of reducing or retiring any indebtedness which was originally incurred to purchase or carry any margin security or for any other purpose which might cause any of the
Shares to be considered a “purpose credit” within the meanings of Regulation T, U or X of the Federal Reserve Board. 
 (hh) Neither the Company nor any of its subsidiaries is a party to any contract, agreement or understanding with any person that would give rise to a valid claim against the Company or any Placement Agent
for a brokerage commission, finder’s fee or like payment in connection with the Offering or any transaction contemplated by this Agreement, the Subscription Agreements, the Registration Statement, the General Disclosure Package or the
Prospectus. 
 (ii) The Company is subject to and in compliance in all material respects with the reporting
requirements of Section 13 or Section 15(d) of the Exchange Act. The Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is listed on the Nasdaq CM, and the Company has taken no action designed to, or
reasonably likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act or delisting the Common Stock from the Nasdaq CM, nor has the Company received any notification that the Commission or FINRA is
contemplating terminating such registration or listing. No consent, approval, authorization or order of, or filing, notification or registration with, the Nasdaq CM is required for the listing and trading of the Common Stock on the Nasdaq CM, except
for (i) a Notification Form: Listing of Additional Shares, and (ii) a Notification Form: Change in the Number of Shares Outstanding. 
 (jj) Except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus, the Company is in compliance in all material respects with all applicable provisions of the
Sarbanes-Oxley Act of 2002 and all rules and regulations promulgated thereunder or implementing the provisions thereof (the “Sarbanes-Oxley Act”) that are in effect. 

(kk) The Company is in compliance in all material respects with all applicable corporate governance requirements set forth
in the Nasdaq Marketplace Rules that are in effect. 
 (ll) Neither the Company, nor to the knowledge of the
Company, any agent or other person acting on behalf of the Company, has (i) used any corporate funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made
any unlawful payment or contribution to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, or otherwise, or which are of the character required to be disclosed in
the Registration Statement, the General Disclosure Package or the Prospectus or a document incorporated by reference therein or (iii) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

  
 14 

 (mm) There are no transactions, arrangements or other relationships between
and/or among the Company, any of its affiliates (as such term is defined in Rule 405 of the Securities Act) and any unconsolidated entity, including, but not limited to, any structured finance, special purpose or limited purpose entity that could
reasonably be expected to materially affect the Company’s or any of its subsidiaries’ liquidity or the availability of or requirements for their capital resources required to be described in the General Disclosure Package and the
Prospectus or a document incorporated by reference therein which have not been described as required. 
 (nn)
There are no outstanding loans, advances (except normal advances for business expenses in the ordinary course of business) or guarantees of indebtedness by the Company or any of its subsidiaries to or for the benefit of any of the officers or
directors of the Company, any of its subsidiaries or any of their respective family members, except as disclosed in the Registration Statement, the General Disclosure Package and the Prospectus. 

(oo) The statistical and market related data included in the Registration Statement, the General Disclosure Package and
the Prospectus are based on or derived from sources that the Company believes to be reliable and accurate in all material respects, and such data agree in all material respects with the sources from which they are derived. 

(pp) The operations of the Company and its subsidiaries are and have been conducted at all times in compliance with
applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, applicable money laundering statutes and applicable rules and regulations thereunder (collectively, the
“Money Laundering Laws”), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its subsidiaries with respect to the Money Laundering
Laws is pending, or to the knowledge of the Company, threatened. 
 (qq) Neither the Company nor any of its
subsidiaries nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of its subsidiaries is currently subject to any U.S. sanctions administered by the Office of Foreign Assets Control of the
U.S. Treasury Department (“OFAC”); and the Company will not directly or indirectly use the proceeds of the Offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other
person or entity, for the purpose of financing the activities of any person currently subject to any U.S. sanctions administered by OFAC. 
 (rr) Neither the Company nor subsidiary nor any of their affiliates (within the meaning of FINRA’s NASD Conduct Rule 5121(f)(1)) directly or indirectly controls, are controlled by, or is under common
control with, or is an associated person (within the meaning of Article I, Section 1(ee) of the By-laws of FINRA) of, any member firm of FINRA. 

  
 15 

 (ss) The conditions to the use of Form S-3 in connection with the Offering
as contemplated hereby have been satisfied. The Registration Statement meets, and the offering and sale of the Shares as contemplated hereby complies with, the requirements of Rule 415 under the Securities Act (including, without limitation, Rule
415(a)(4) and (a)(5) of the Rules and Regulations). 
 (tt) No approval of the shareholders of the Company under
the rules and regulations of Nasdaq (including Rule 5635 of the Nasdaq Global Marketplace Rules) is required for the Company to issue and deliver to the Purchasers the Shares. 

Any certificate signed by or on behalf of the Company and delivered to the Representative or to counsel for the Placement
Agent shall be deemed to be a representation and warranty by the Company to the Placement Agent and the Purchasers as to the matters covered thereby. 
 4. THE CLOSING. The time and date of closing and delivery of the documents required to be delivered to the Representative pursuant to Sections 5
and 7 hereof shall be at 10:00 A.M., New York time, on December 27, 2011 (the “Closing Date”) at the office of Goodwin Procter LLP, 620 Eighth Avenue, New York, NY 10018. 

5. FURTHER AGREEMENTS OF THE COMPANY.
The Company agrees with the Placement Agents and the Purchasers: 
 (a) To prepare the Rule
462(b) Registration Statement, if necessary, in a form approved by the Representative and file such Rule 462(b) Registration Statement with the Commission on the date hereof; to prepare the Prospectus in a form approved by the Representative
containing information previously omitted at the time of effectiveness of the Registration Statement in reliance on rules 430A, 430B and 430C and to file such Prospectus pursuant to Rule 424(b) of the Rules and Regulations not later than the second
(2nd) business day following the execution and
delivery of this Agreement or, if applicable, such earlier time as may be required by Rule 430A of the Rules and Regulations; to notify the Representative immediately of the Company’s intention to file or prepare any supplement or amendment to
any Registration Statement or to the Prospectus and to make no amendment or supplement to the Registration Statement, the General Disclosure Package or to the Prospectus to which the Representative shall reasonably object by notice to the Company
after a reasonable period to review; to advise the Representative, promptly after it receives notice thereof, of the time when any amendment to any Registration Statement has been filed or becomes effective or any supplement to the General
Disclosure Package or the Prospectus or any amended Prospectus has been filed and to furnish the Representative copies thereof; to file promptly all material required to be filed by the Company with the Commission pursuant to Rule 163(b)(2); to file
promptly all reports and any definitive proxy or information statements required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act subsequent to the date of the

  
 16 

 
Prospectus and for so long as the delivery of a prospectus (or in lieu thereof, the notice referred to in Rule 173(a) of the Rules and Regulations) is required in connection with the offering or
sale of the Shares; to advise the Representative, promptly after it receives notice thereof, of the issuance by the Commission of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or the Prospectus, of the
suspension of the qualification of the Shares for offering or sale in any jurisdiction, of the initiation or threatening of any proceeding for any such purpose, or of any request by the Commission for the amending or supplementing of the
Registration Statement, the General Disclosure Package or the Prospectus or for additional information; and, in the event of the issuance of any stop order or of any order preventing or suspending the use of any Preliminary Prospectus or the
Prospectus or suspending any such qualification, and promptly to use its reasonable best efforts to obtain the withdrawal of such order. 
 (b) If at any time when a Prospectus relating to the Shares is required to be delivered under the Securities Act, any event occurs or condition exists as a result of which the Prospectus, as then amended
or supplemented, would include any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading, or the Registration
Statement, as then amended or supplemented, would include any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein not misleading, or if for any other reason it is necessary at any time to
amend or supplement any Registration Statement or the Prospectus to comply with the Securities Act or the Exchange Act, the Company will promptly notify the Representative, and upon the Representative’s request, the Company will promptly
prepare and file with the Commission, at the Company’s expense, an amendment to the Registration Statement or an amendment or supplement to the Prospectus that corrects such statement or omission or effects such compliance and will deliver to
the Placement Agents, without charge, such number of copies thereof as the Placement Agents may reasonably request. 
 (c) If the General Disclosure Package is being used to solicit offers to buy any Shares at a time when the Prospectus is not yet available to prospective purchasers and any event shall occur as a result
of which, in the judgment of the Company or in the reasonable opinion of the Representative, it becomes necessary to amend or supplement the General Disclosure Package in order to make the statements therein, in the light of the circumstances under
which they were made, not misleading, or to make the statements therein not conflict with the information contained or incorporated by reference in the Registration Statement then on file and not superseded or modified, or if it is necessary at any
time to amend or supplement the General Disclosure Package to comply with any law, the Company promptly will either (i) prepare, file with the Commission (if required) and furnish to the Placement Agents and any dealers an appropriate amendment
or supplement to the General Disclosure Package or (ii) prepare and file with the Commission an appropriate filing under the Exchange Act which shall be incorporated by reference in the General Disclosure Package so that the General Disclosure
Package as so amended or supplemented will not, in the light of the circumstances under which they were made, be misleading or conflict with the Registration Statement then on file, or so that the General Disclosure Package will comply with law.

  
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 (d) To the extent not available on the Commission’s EDGAR system, to
furnish promptly to the Placement Agents and to counsel for the Placement Agents a signed copy of the Registration Statement as originally filed with the Commission, and of each amendment thereto filed with the Commission, including all consents and
exhibits filed therewith. 
 (e) To the extent not available on the Commission’s EDGAR system, to deliver
promptly to the Representative in New York City such number of the following documents as the Representative shall reasonably request: (i) conformed copies of the Registration Statement as originally filed with the Commission (in each case
excluding exhibits), (ii) each Preliminary Prospectus, (iii) the Prospectus (the delivery of the documents referred to in clauses (i), (ii) and (iii) of this paragraph (e) to be made not later than 10:00 A.M., New
York time, on the business day following the execution and delivery of this Agreement), (iv) conformed copies of any amendment to the Registration Statement (excluding exhibits), (v) any amendment or supplement to the General Disclosure
Package or the Prospectus (the delivery of the documents referred to in clauses (iv) and (v) of this paragraph (e) to be made not later than 10:00 A.M., New York City time, on the business day following the date of such
amendment or supplement) and (vi) any document incorporated by reference in the General Disclosure Package or the Prospectus (excluding exhibits thereto) (the delivery of the documents referred to in clause (v) of this paragraph
(e) to be made not later than 10:00 A.M., New York City time, on the business day following the date of such document). 
 (f) To make generally available to its shareholders as soon as practicable, but in any event not later than eighteen (18) months after the effective date of each Registration Statement (as defined in
Rule 158(c) of the Rules and Regulations), an earnings statement of the Company (which need not be audited) complying with Section 11(a) of the Securities Act and the Rules and Regulations (including, at the option of the Company, Rule 158).

 (g) To take promptly from time to time such actions as the Representative may reasonably request to qualify
the Shares for the offering and sale under the securities or Blue Sky laws of such jurisdictions (domestic or foreign) as the Representative may designate and to continue such qualifications in effect, and to comply with such laws, for so long as
required to permit the offer and sale of Shares in such jurisdictions; provided that the Company shall not be obligated to qualify as foreign corporations in any jurisdiction in which they are not so qualified or to file a general consent to
service of process in any jurisdiction. 
 (h) To the extent not available on the Commission’s EDGAR system,
upon request, during the period of five (5) years from the date hereof, to deliver to the Placement Agents, (i) as soon as they are available, copies of all reports or other communications furnished to shareholders, and (ii) as soon
as they are available, copies of any reports and financial statements furnished or filed with the Commission or any national securities exchange or automatic quotation system on which the Common Stock is listed or quoted. 

  
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 (i) To supply the Representative with copies of all correspondence to and
from, and all documents issued to and by, the Commission in connection with the registration of the Shares under the Securities Act or the Registration Statement, any Preliminary Prospectus or the Prospectus, or any amendment or supplement thereto
or document incorporated by reference therein. 
 (j) Prior to the Closing Date, to furnish to the
Representative, as soon as they have been prepared, copies of any unaudited interim consolidated financial statements of the Company for any periods subsequent to the periods covered by the financial statements appearing in the Registration
Statement and the Prospectus. 
 (k) Prior to the Closing Date, not to issue any press release or other
communication directly or indirectly or hold any press conference with respect to the Company, its condition, financial or otherwise, or earnings or business affairs (except for routine oral marketing communications in the ordinary course of
business and consistent with the past practices of the Company and of which the Representative is notified), without the prior written consent of the Representative, unless in the judgment of the Company and its counsel, and after notification to
the Placement Agents, such press release or communication is required by law. 
 (l) Until the Representative
shall have notified the Company of the completion of the Offering, that the Company will not, and will use its reasonable best efforts to cause its affiliated purchasers (as defined in Regulation M under the Exchange Act) not to, either alone or
with one or more other persons, bid for or purchase, for any account in which it or any of its affiliated purchasers has a beneficial interest, any Shares, or attempt to induce any person to purchase any Shares; and not to, and to use its reasonable
best efforts to cause its affiliated purchasers not to, make bids or purchase for the purpose of creating actual, or apparent, active trading in or of raising the price of the Shares. 

(m) Use its reasonable best efforts not to take any action prior to the Closing Date which would require the Prospectus to
be amended or supplemented pursuant to Section 5. 
 (n) To at all times comply with all applicable
provisions of the Sarbanes-Oxley Act in effect from time to time. 
 (o) To apply the net proceeds from the sale
of the Shares as set forth in the Registration Statement, the General Disclosure Package and the Prospectus under the heading “Use of Proceeds.” 
 (p) To use its best efforts to list, effect and maintain, subject to notice of issuance, the Shares on the Nasdaq CM. 

(q) To use its best efforts to do and perform all things required to be done or performed under this Agreement and the
Subscription Agreements by the Company prior to the Closing Date and to satisfy all conditions precedent to the delivery of the Shares. 

  
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 6. PAYMENT OF EXPENSES.
The Company agrees to pay, or reimburse if paid by the Placement Agents, whether or not the transactions contemplated hereby are consummated or this Agreement is terminated: (a) the costs incident to the authorization, issuance, sale,
preparation and delivery of the Shares to the Purchasers and any taxes payable in that connection; (b) the costs incident to the registration of the Shares under the Securities Act; (c) the costs incident to the preparation, printing and
distribution of the Registration Statement, the Base Prospectus, any Preliminary Prospectus, the General Disclosure Package, the Prospectus, any amendments, supplements and exhibits thereto or any document incorporated by reference therein and the
costs of printing, reproducing and distributing any transaction document by mail, telex or other means of communications; (d) any applicable listing, quotation or other fees; (e) the fees and expenses of qualifying the Shares under the
securities laws of the several jurisdictions as provided in Section 5(g) and of preparing, printing and distributing wrappers, Blue Sky Memoranda and Legal Investment Surveys; (f) the cost of preparing and printing stock
certificates; (g) all fees and expenses of the registrar and transfer agent of the Shares; and (h) all other costs and expenses incident to the offering of the Shares or the performance of the obligations of the Company under this
Agreement and the Subscription Agreements (including, without limitation, the fees and expenses of the Company’s counsel and the Company’s independent accountants and the travel and other expenses incurred by the Company and its personnel
in connection with any “road show” including, without limitation, any expenses advanced by the Placement Agents on the Company’s behalf (which will be promptly reimbursed on the Closing Date)). 

7. CONDITIONS TO THE OBLIGATIONS OF THE
PLACEMENT AGENTS AND THE PURCHASERS, AND THE SALE OF THE SHARES.
The respective obligations of the Placement Agents hereunder, and the Purchasers under the Subscription Agreements, and the Closing of the sale of the Shares, are subject to the accuracy, when made and as of the Applicable Time and on the Closing
Date, of the representations and warranties of the Company contained herein, to the accuracy of the statements of the Company made in any certificates pursuant to the provisions hereof, to the performance by the Company of its obligations hereunder,
and to each of the following additional terms and conditions: 
 (a) No stop order suspending the effectiveness
of the Registration Statement or any part thereof, preventing or suspending the use of any Base Prospectus, any Preliminary Prospectus, the Prospectus or any part thereof shall have been issued and no proceedings for that purpose or pursuant to
Section 8A under the Securities Act shall have been initiated or threatened by the Commission, and all requests for additional information on the part of the Commission (to be included or incorporated by reference in the Registration Statement
or the Prospectus or otherwise) shall have been complied with to the reasonable satisfaction of the Representative; the Rule 462(b) Registration Statement, if any, and the Prospectus shall have been filed with the Commission within the applicable
time period prescribed for such filing by, and in compliance with, the Rules and Regulations and in accordance with Section 5(a), and the Rule 462(b) Registration Statement, if any, shall have become effective immediately upon its filing
with the Commission; and FINRA shall have raised no objection to the fairness and reasonableness of the terms of this Agreement or the transactions contemplated hereby. 

  
 20 

 (b) No Placement Agent shall have discovered and disclosed to the Company on
or prior to the Closing Date that the Registration Statement or any amendment or supplement thereto contains an untrue statement of a fact which, in the opinion of counsel for the Placement Agents, is material or omits to state any fact which, in
the opinion of such counsel, is material and is required to be stated therein or is necessary to make the statements therein not misleading, or that the General Disclosure Package, or the Prospectus or any amendment or supplement thereto contains an
untrue statement of fact which, in the opinion of such counsel, is material or omits to state any fact which, in the opinion of such counsel, is material and is necessary in order to make the statements, in the light of the circumstances in which
they were made, not misleading. 
 (c) All corporate proceedings incident to the authorization, form and validity
of each of this Agreement, the Subscription Agreements, the Shares, the Registration Statement, the General Disclosure Package, and the Prospectus and the transactions contemplated hereby shall be reasonably satisfactory in all material respects to
counsel for the Placement Agents, and the Company shall have furnished to such counsel all documents and information that they may reasonably request to enable them to pass upon such matters. 

(d) Goodwin Procter LLP shall have furnished to the Representative such counsel’s written opinion and negative
assurances statement, as counsel to the Company, addressed to the Placement Agent and dated the Closing Date, in form and substance reasonably satisfactory to the Placement Agent. 

(e) At the time of the execution of this Agreement, the Representative shall have received from Ehrhardt Keefe
Steiner & Hottman PC, a letter, addressed to the Placement Agents, executed and dated such date, in form and substance satisfactory to the Representative (i) confirming that they are an independent registered accounting firm with
respect to the Company and its subsidiaries within the meaning of the Securities Act and the Rules and Regulations and PCAOB and (ii) stating the conclusions and findings of such firm, of the type ordinarily included in accountants’
“comfort letters” to underwriters, with respect to the financial statements and certain financial information contained or incorporated by reference in the Registration Statement, the General Disclosure Package and the Prospectus.

 (f) On the effective date of any post-effective amendment to any Registration Statement and on the Closing
Date, the Representative shall have received a letter (the “Bring-Down Letter”) from Ehrhardt Keefe Steiner & Hottman PC, addressed to the Placement Agents and dated the Closing Date confirming, as of the date of the
Bring-Down Letter (or, with respect to matters involving changes or developments since the respective dates as of which specified financial information is given in the General Disclosure Package and the Prospectus, as the case may be, as of a date
not more than three (3) business days prior to the date of the Bring-Down Letter), the conclusions and findings of such firm, of the type ordinarily included in accountants’ “comfort letters” to underwriters, with respect to the
financial information and other matters covered by its letter delivered to the Representative concurrently with the execution of this Agreement pursuant to paragraph (e) of this Section 7. 

  
 21 

 (g) The Company shall have furnished to the Placement Agents and the
Purchasers a certificate, dated the Closing Date, of its Chairman of the Board, its President or a Vice President and its chief financial officer stating that (i) such officers have carefully examined the Registration Statement, the General
Disclosure Package, and the Prospectus and, in their opinion, the Registration Statement and each amendment thereto, at the Applicable Time and as of the date of this Agreement and as of the Closing Date did not include any untrue statement of a
material fact and did not omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and the General Disclosure Package, as of the Applicable Time and as of the Closing Date, the
Prospectus and each amendment or supplement thereto, as of the respective date thereof and as of the Closing Date, did not include any untrue statement of a material fact and did not omit to state a material fact necessary in order to make the
statements therein, in the light of the circumstances in which they were made, not misleading, (ii) since the effective date of the Registration Statement, no event has occurred which should have been set forth in a supplement or amendment to
the Registration Statement, the General Disclosure Package or the Prospectus that has not been so set forth therein, (iii) to the best of their knowledge after reasonable investigation, as of the Closing Date, the representations and warranties
of the Company in this Agreement are true and correct and the Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date, and (iv) there has not been,
subsequent to the date of the most recent audited financial statements included or incorporated by reference in the General Disclosure Package, any material adverse change in the financial position or results of operations of the Company and its
subsidiaries, or any change or development that, singly or in the aggregate, would involve a material adverse change or a prospective material adverse change, in or affecting the condition (financial or otherwise), results of operations, business or
assets of the Company and its subsidiaries, except as set forth in the Prospectus. 
 (h) Since the date of the
latest audited financial statements included in the General Disclosure Package or incorporated by reference in the General Disclosure Package as of the date hereof, (i) neither the Company nor any of its subsidiaries shall have sustained any
loss or interference with its business from fire, explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, order or decree, otherwise than as set forth in the General
Disclosure Package, and (ii) there shall not have been any change in the capital stock or long-term debt of the Company nor any of its subsidiaries, or any change, or any development involving a prospective change, in or affecting the business,
general affairs, management, financial position, stockholders’ equity or results of operations of the Company and its subsidiaries, otherwise than as set forth in the General Disclosure Package, the effect of which, in any such case described
in clause (i) or (ii) of this paragraph (h), is, in the judgment of the Representative, so material and adverse as to make it impracticable or inadvisable to proceed with the sale or delivery of the Shares on the terms and in the
manner contemplated in the General Disclosure Package. 
 (i) No action shall have been taken and no law,
statute, rule, regulation or order shall have been enacted, adopted or issued by any governmental agency or body 

  
 22 

 
which would prevent the issuance or sale of any of the Shares or materially and adversely affect or potentially materially and adversely affect the business or operations of the Company or its
subsidiaries; and no injunction, restraining order or order of any other nature by any federal or state court of competent jurisdiction shall have been issued which would prevent the issuance or sale of any of the Shares or materially and adversely
affect or potentially materially and adversely affect the business or operations of the Company or its subsidiaries. 
 (j) Subsequent to the execution and delivery of this Agreement there shall not have occurred any of the following: (i) trading in securities generally on the New York Stock Exchange, Nasdaq CM or the
NYSE Arca or in the over-the-counter market, or trading in any securities of the Company on any exchange or in the over-the-counter market, shall have been suspended or materially limited, or minimum or maximum prices or maximum range for prices
shall have been established on any such exchange or such market by the Commission, by such exchange or market or by any other regulatory body or governmental authority having jurisdiction, (ii) a banking moratorium shall have been declared by
Federal or state authorities or a material disruption has occurred in commercial banking or securities settlement or clearance services in the United States, (iii) any outbreak or material escalation of hostilities or acts of terrorism
involving the United States or a declaration by the United States of a national emergency or war, or (iv) any other calamity or crisis or any material change in general economic, political or financial conditions in the United States or
elsewhere, if the effect of such event specified in clause (iii) or (iv), in the good faith judgment of the Placement Agents, is material and adverse and makes it, impracticable or inadvisable to proceed with the completion of the sale of and
payment for the Shares on the Closing Date on the terms and in the manner contemplated by this Agreement, in the General Disclosure Package and the Prospectus. 
 (k) The Company shall have filed a Notification Form: Listing of Additional Shares with the Nasdaq CM and shall have received no objection thereto from the Nasdaq CM. 

(l) The Company shall have entered into Subscription Agreements with each of the Purchasers and such agreements shall be
in full force and effect. 
 (m) The Placement Agents shall have received clearance from FINRA as to the amount
of compensation allowable or payable to the Placement Agent as described in the Pricing Prospectus. 
 (n) Prior
to the Closing Date, the Company shall have furnished to the Placement Agents such further information, opinions, certificates (including a Secretary’s Certificate), letters or documents as the Representative shall have reasonably requested.

 All opinions, letters, evidence and certificates mentioned above or elsewhere in this Agreement shall be deemed to be in
compliance with the provisions hereof only if they are in form and substance reasonably satisfactory to counsel for the Placement Agents. 

  
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 8. INDEMNIFICATION AND
CONTRIBUTION. 
 (a) The Company shall indemnify and hold harmless each
Placement Agent, and each of their respective directors, officers, members, employees, representatives and agents, and each person, if any, who controls such Placement Agent within the meaning of Section 15 of the Securities Act or
Section 20 of the Exchange Act (collectively, the “Placement Agent Indemnified Parties,” and each a “Placement Agent Indemnified Party”) against any loss, claim, damage, expense or liability whatsoever (or any
action, investigation or proceeding in respect thereof), joint or several, to which such Placement Agent Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such loss, claim, damage, expense, liability, action,
investigation or proceeding arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in any Preliminary Prospectus, any Registration Statement or the Prospectus, or in any amendment or
supplement thereto or document incorporated by reference therein, (B) the omission or alleged omission to state in any Preliminary Prospectus, any Registration Statement or the Prospectus, or in any amendment or supplement thereto or document
incorporated by reference therein, a material fact required to be stated therein or necessary to make the statements therein in light of (other than in the case of the Registration Statement) the circumstances under which they are made not
misleading, or (C) any untrue statement or alleged untrue statement made by the Company in Section 5 hereof or the failure by the Company to perform when and as required any agreement or covenant contained herein, and shall
reimburse the Placement Agent Indemnified Party promptly upon demand for any legal fees or other expenses reasonably incurred by that Placement Agent Indemnified Party in connection with investigating, or preparing to defend, or defending against,
or appearing as a third party witness in respect of, or otherwise incurred in connection with, any such loss, claim, damage, expense, liability, action, investigation or proceeding, as such fees and expenses are incurred; provided, however,
that the Company shall not be liable in any such case to the extent that any such loss, claim, damage, expense or liability arises out of or is based upon an untrue statement or alleged untrue statement in, or omission or alleged omission from any
Preliminary Prospectus, any Registration Statement or the Prospectus, or any such amendment or supplement thereto, made in reliance upon and in conformity with written information furnished to the Company by the Placement Agents specifically for use
therein, which information the parties hereto agree is limited to the Placement Agents’ Information. This indemnity agreement is not exclusive and will be in addition to any liability, which the Company might have under this Agreement or
otherwise and shall not limit any rights or remedies which may otherwise be available under this Agreement, at law or in equity to each Placement Agent Indemnified Party. 

(b) Each Placement Agent shall, severally and not jointly, indemnify and hold harmless the Company and its directors, its
officers who signed the Registration Statement and each person, if any, who controls the Company within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act (collectively, the “Company Indemnified
Parties,” and each a “Company Indemnified Party”) against any loss, claim, damage, expense or liability whatsoever (or any action, investigation or proceeding in respect thereof), joint or several, to which such Company
Indemnified Party may become subject, under the Securities Act or otherwise, insofar as such loss, 

  
 24 

 
claim, damage, expense, liability, action, investigation or proceeding arises out of or is based upon (i) any untrue statement or alleged untrue statement of a material fact contained in any
Preliminary Prospectus, any Registration Statement or the Prospectus, or in any amendment or supplement thereto, or (ii) the omission or alleged omission to state in any Preliminary Prospectus, any Registration Statement or the Prospectus, or
in any amendment or supplement thereto, a material fact required to be stated therein or necessary to make the statements therein in light of (other than in the case of any Registration Statement) the circumstances under which they are made not
misleading, but in each case only to the extent that the untrue statement or alleged untrue statement or omission or alleged omission was made in reliance upon and in conformity with written information furnished to the Company by the Placement
Agents specifically for use therein, which information the parties hereto agree is limited to the Placement Agents’ Information, and shall reimburse the Company Indemnified Party for any legal or other expenses reasonably incurred by such party
in connection with investigating or preparing to defend or defending against or appearing as third party witness in connection with any such loss, claim, damage, liability, action, investigation or proceeding, as such fees and expenses are incurred.
This indemnity agreement is not exclusive and will be in addition to any liability which the Placement Agents might otherwise have and shall not limit any rights or remedies which may otherwise be available under this Agreement, at law or in equity
to the Company Indemnified Parties. Notwithstanding the provisions of this Section 8(b), in no event shall any indemnity by any Placement Agent under this Section 8(b) exceed the total of the sum of the Placement Fee and
Expense Allowance received by such Placement Agent in accordance with Section 2.5. 
 (c) Promptly
after receipt by an indemnified party under this Section 8 of notice of the commencement of any action, the indemnified party shall, if a claim in respect thereof is to be made against an indemnifying party under this
Section 8, notify such indemnifying party in writing of the commencement of that action; provided, however, that the failure to notify the indemnifying party shall not relieve it from any liability which it may have under this
Section 8 except to the extent it has been materially prejudiced by such failure; and, provided, further, that the failure to notify an indemnifying party shall not relieve it from any liability which it may have to an indemnified
party otherwise than under this Section 8. If any such action shall be brought against an indemnified party, and it shall notify the indemnifying party thereof, the indemnifying party shall be entitled to participate therein and, to the
extent that it wishes, jointly with any other similarly notified indemnifying party, to assume the defense of such action with counsel reasonably satisfactory to the indemnified party (which counsel shall not, except with the written consent of the
indemnified party, be counsel to the indemnifying party). After notice from the indemnifying party to the indemnified party of its election to assume the defense of such action, except as provided herein, the indemnifying party shall not be liable
to the indemnified party under Section 8 for any legal or other expenses subsequently incurred by the indemnified party in connection with the defense of such action other than reasonable costs of investigation; provided, however,
that any indemnified party shall have the right to employ separate counsel in any such action and to participate in the defense of such action but the fees and expenses of such counsel (other than reasonable costs of investigation) shall be at the
expense of such indemnified party unless (i) the employment thereof has been 

  
 25 

 
specifically authorized in writing by the Company in the case of a claim for indemnification under Section 8(a) or Section 2.1 or the Placement Agents in the case of a
claim for indemnification under Section 8(b), (ii) such indemnified party shall have been advised by its counsel that there may be one or more legal defenses available to it which are different from or additional to those available
to the indemnifying party, or (iii) the indemnifying party has failed to assume the defense of such action and employ counsel reasonably satisfactory to the indemnified party within a reasonable period of time after notice of the commencement
of the action or the indemnifying party does not diligently defend the action after assumption of the defense, in which case, if such indemnified party notifies the indemnifying party in writing that it elects to employ separate counsel at the
expense of the indemnifying party, the indemnifying party shall not have the right to assume the defense of (or, in the case of a failure to diligently defend the action after assumption of the defense, to continue to defend) such action on behalf
of such indemnified party and the indemnifying party shall be responsible for legal or other expenses subsequently incurred by such indemnified party in connection with the defense of such action; provided, however, that the indemnifying
party shall not, in connection with any one such action or separate but substantially similar or related actions in the same jurisdiction arising out of the same general allegations or circumstances, be liable for the reasonable fees and expenses of
more than one separate firm of attorneys at any time for all such indemnified parties (in addition to any local counsel), which firm shall be designated in writing by the Representative if the indemnified parties under this Section 8
consist of any Placement Agent Indemnified Party or by the Company if the indemnified parties under this Section 8 consist of any Company Indemnified Parties. Subject to this Section 8(c), the amount payable by an
indemnifying party under Section 8 shall include, but not be limited to, (x) reasonable legal fees and expenses of counsel to the indemnified party and any other expenses in investigating, or preparing to defend or defending
against, or appearing as a third party witness in respect of, or otherwise incurred in connection with, any action, investigation, proceeding or claim, and (y) all amounts paid in settlement of any of the foregoing. No indemnifying party shall,
without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of judgment with respect to any pending or threatened action or any claim whatsoever, in respect of which indemnification or contribution
could be sought under this Section 8 (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party in
form and substance reasonably satisfactory to such indemnified party from all liability arising out of such action or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of
any indemnified party. Subject to the provisions of the following sentence, no indemnifying party shall be liable for settlement of any pending or threatened action or any claim whatsoever that is effected without its written consent (which consent
shall not be unreasonably withheld or delayed), but if settled with its written consent, if its consent has been unreasonably withheld or delayed or if there be a judgment for the plaintiff in any such matter, the indemnifying party agrees to
indemnify and hold harmless any indemnified party from and against any loss or liability by reason of such settlement or judgment. In addition, if at any time an indemnified party shall have requested that an indemnifying party reimburse the
indemnified party for fees and expenses of counsel, 

  
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such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated herein effected without its written consent if (i) such settlement is entered into more
than forty-five (45) days after receipt by such indemnifying party of the request for reimbursement, (ii) such indemnifying party shall have received notice of the terms of such settlement at least thirty (30) days prior to such
settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. 

(d) If the indemnification provided for in this Section 8 is unavailable or insufficient to hold harmless an
indemnified party under Section 8(a) or Section 8(b), then each indemnifying party shall, in lieu of indemnifying such indemnified party, contribute to the amount paid, payable or otherwise incurred by such indemnified party
as a result of such loss, claim, damage, expense or liability (or any action, investigation or proceeding in respect thereof), as incurred, (i) in such proportion as shall be appropriate to reflect the relative benefits received by the Company
on the one hand and the Placement Agents on the other hand from the Offering, or (ii) if the allocation provided by clause (i) of this Section 8(d) is not permitted by applicable law, in such proportion as is appropriate to
reflect not only the relative benefits referred to in clause (i) of this Section 8(d) but also the relative fault of the Company on the one hand and the Placement Agent on the other with respect to the statements, omissions, acts or
failures to act which resulted in such loss, claim, damage, expense or liability (or any action, investigation or proceeding in respect thereof) as well as any other relevant equitable considerations. The relative benefits received by the Company on
the one hand and the Placement Agents on the other with respect to such offering shall be deemed to be in the same proportion as the total net proceeds from the offering of the Shares purchased under this Agreement (before deducting expenses)
received by the Company bear to the total of the sum of Placement Fee and the Expense Allowance received by each Placement Agent in connection with the Offering, in each case as set forth in the table on the cover page of the Prospectus. The
relative fault of the Company on the one hand and the Placement Agents on the other shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to
state a material fact relates to information supplied by the Company on the one hand or such Placement Agent on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such
untrue statement, omission, act or failure to act; provided that the parties hereto agree that the written information furnished to the Company by the Placement Agents for use in any Preliminary Prospectus, any Registration Statement or the
Prospectus, or in any amendment or supplement thereto, consists solely of the Placement Agents’ Information. The Company and the Placement Agents agree that it would not be just and equitable if contributions pursuant to this
Section 8(d) were to be determined by pro rata allocation or by any other method of allocation that does not take into account the equitable considerations referred to herein. The amount paid or payable by an indemnified party as a
result of the loss, claim, damage, expense, liability, action, investigation or proceeding referred to above in this Section 8(d) shall be deemed to include, for purposes of this Section 8(d), any legal or other expenses
reasonably incurred by such indemnified party in connection with investigating, preparing to defend or defending against or appearing as a third party witness in respect of, or otherwise incurred in connection with, any such

  
 27 

 
loss, claim, damage, expense, liability, action, investigation or proceeding. Notwithstanding the provisions of this Section 8(d), no Placement Agent shall be required to contribute
any amount in excess of the total of the sum of the Placement Fee and the Expense Allowance received by such Placement Agent in accordance with Section 2.5 less the amount of any damages which such Placement Agent has otherwise paid or
become liable to pay by reason of any untrue or alleged untrue statement, omission or alleged omission, act or alleged act or failure to act or alleged failure to act. No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. The Placement Agents’ obligations to contribute as provided in this Section 8(d) are
several in proportion to the amount of the Placement Fee received by each of them and not joint. 
 9.
TERMINATION. The obligations of the Placement Agents hereunder may be terminated by the Representative, in its absolute discretion by notice given to the Company prior to delivery of and payment for the Shares
if, prior to that time, any of the events described in Sections 7(h) or 7(j) have occurred or if the Purchasers shall decline to purchase the Shares for any reason permitted under the Subscription Agreements. 

10. REIMBURSEMENT OF PLACEMENT AGENTS’
EXPENSES. Notwithstanding anything to the contrary in this Agreement, if (a) this Agreement shall have been terminated pursuant to Section 9, (b) the Company shall fail to tender any of the
Shares for delivery to the Purchasers for any reason not permitted under this Agreement, (c) the Purchasers shall decline to purchase the Shares for any reason permitted under this Agreement or (d) the sale of the Shares is not consummated
because any condition to the obligations of the Purchasers or the Placement Agents set forth herein is not satisfied or because of the refusal, inability or failure on the part of the Company to perform any agreement herein or to satisfy any
condition or to comply with the provisions hereof, then, the Company shall reimburse the Placement Agents for the reasonable and documented fees and expenses of the Placement Agents’ counsel and for such other out-of-pocket expenses as shall
have been reasonably incurred by them in connection with this Agreement and the proposed Offering up to a maximum aggregate amount of $100,000, and upon demand the Company shall pay the full amount thereof to the Representative on behalf of the
Placement Agents. The Representative acknowledges that the Company has advanced $50,000 to the Representative, which shall be applied against any reimbursement under this Section 10. 

11. AUTHORITY OF THE REPRESENTATIVE. SCP and EGE each
acknowledge and agree that FFM will act as Representative under this Agreement and with respect to the sale of the Units. Accordingly, SCP and EGE each authorize FFM to manage the Offering and the sale of the Shares and to take such action in
connection therewith as FFM in its sole discretion deems appropriate or desirable. 

  
 28 

 12. ABSENCE OF FIDUCIARY
RELATIONSHIP. The Company acknowledges and agrees that: 
 (a) Each of the Placement
Agent’s responsibility to the Company is several and solely contractual in nature, the Placement Agents have been retained solely to act as a placement agent in connection with the Offering and no fiduciary, advisory or agency relationship
between the Company and any Placement Agent has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether any Placement Agent has advised or is advising the Company on other matters; 

(b) the price of the Shares set forth in this Agreement was established by the Company following discussions and
arms-length negotiations with the Placement Agents, and the Company is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement; 

(c) it has been advised that the Placement Agents and each of their affiliates are engaged in a broad range of
transactions which may involve interests that differ from those of the Company and that no Placement Agent has any obligation to disclose such interests and transactions to the Company by virtue of any fiduciary, advisory or agency relationship; and

 (d) it waives, to the fullest extent permitted by law, any claims it may have against the Placement Agents for
breach of fiduciary duty or alleged breach of fiduciary duty and agrees that the Placement Agents shall have no liability (whether direct or indirect) to the Company in respect of such a fiduciary duty claim or to any person asserting a fiduciary
duty claim on behalf of or in right of the Company, including stockholders, employees or creditors of the Company. 
 13.
SUCCESSORS; PERSONS ENTITLED TO BENEFIT OF AGREEMENT. This Agreement shall inure to the benefit of and be binding upon the Placement
Agents, the Company, and their respective successors and assigns. This Agreement shall also inure to the benefit of the Purchasers, which shall be third party beneficiaries hereof. Notwithstanding anything to the contrary in this Agreement, as
provided in the Subscription Agreements, the determination as to whether any condition in Section 7 hereof shall have been satisfied, and the waiver of any condition in Section 7 hereof, may be made by the Representative in
its sole discretion, and any such determination or waiver shall be binding on each of the Purchasers and shall not require the consent of any Purchaser. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any
person, other than the persons mentioned in the preceding sentences, any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained, this Agreement and all conditions and provisions hereof
being intended to be and being for the sole and exclusive benefit of such persons and for the benefit of no other person; except that the representations, warranties, covenants, agreements and indemnities of the Company contained in this Agreement
shall also be for the benefit of the Placement Agent Indemnified Parties and the several indemnities of each Placement Agent shall be for the benefit of the Company Indemnified Parties. It is understood that each Placement Agent’s
responsibility to the Company is solely contractual in nature and no Placement Agent 

  
 29 

 
owes the Company, or any other party, any fiduciary duty as a result of this Agreement. No purchaser of any Shares shall be deemed to be a successor or assign by reason merely of such purchase.

 14. SURVIVAL OF INDEMNITIES, REPRESENTATIONS,
WARRANTIES, ETC. The respective indemnities, covenants, agreements, representations, warranties and other statements of the Company and each Placement Agent, as set forth in this Agreement or made by them
respectively, pursuant to this Agreement, shall remain in full force and effect, regardless of any investigation made by or on behalf of the Placement Agents, the Company, the Purchasers or any person controlling any of them and shall survive
delivery of and payment for the Shares. Notwithstanding any termination of this Agreement, including without limitation any termination pursuant to Section 9, the indemnity, contribution and reimbursement agreements contained in
Sections 8 and 10, respectively, and the covenants, representations, warranties set forth in this Agreement shall not terminate and shall remain in full force and effect at all times. 

15. NOTICES. All statements, requests, notices and agreements hereunder shall be in writing, and: 

(a) if to the Placement Agents, shall be delivered or sent by mail, telex, facsimile transmission or email to Fordham
Financial Management, Inc., 14 Wall Street, New York, NY , Attention: General Counsel, Fax: 212-349-2550; and 
 (b) if to the Company, shall be delivered or sent by mail, telex, facsimile transmission or email to Ampio Pharmaceuticals, Inc., 5445 DTC Parkway, Suite 925, Greenwood Village, Colorado 80111,
Attention: Chief Financial Officer, Fax: 720-437-6501. 
 Any such statements, requests, notices or agreements shall take effect at the
time of receipt thereof, except that any such statement, request, notice or agreement delivered or sent by email shall take effect at the time of confirmation of receipt thereof by the recipient thereof. 

16. DEFINITION OF CERTAIN TERMS. For purposes of this Agreement,
(a) “business day” means any day on which the New York Stock Exchange, Inc. is open for trading, (b) “subsidiary” has the meaning set forth in Rule 405 of the Rules and Regulations and
(c) “knowledge” means the knowledge of the directors and officers of the Company after reasonable inquiry. 
 17. GOVERNING LAW, AGENT FOR SERVICE AND JURISDICTION. This Agreement shall be governed
by and construed in accordance with the laws of the State of New York, including without limitation Section 5-1401 of the New York General Obligations Law. No legal proceeding may be commenced, prosecuted or continued in any court other
than the courts of the State of New York located in the City and County of New York or in the United States District Court for the Southern District of New York, which courts shall have jurisdiction over the adjudication of such matters, and the
Company and each Placement Agent each hereby consent to the jurisdiction of such courts and personal service with respect thereto. The Company and each Placement Agent each hereby waive all right to trial by jury in any legal proceeding (whether
based upon contract, tort or otherwise) in any way arising out of or relating 

  
 30 

 
to this Agreement. The Company agrees that a final judgment in any such legal proceeding brought in any such court shall be conclusive and binding upon the Company and each Placement Agent and
may be enforced in any other courts in the jurisdiction of which the Company is or may be subject, by suit upon such judgment. 

18. PLACEMENT AGENTS’ INFORMATION. The parties hereto acknowledge
and agree that, for all purposes of this Agreement, the Placement Agents’ Information consists solely of the following information in the Prospectus: (i) the last paragraph on the front cover page concerning the terms of the Offering; and
(ii) the statements concerning the Placement Agents contained in the first paragraph, and concerning FFM under the sub-heading “Placement Agent Regulatory Matters”, in each case under the heading “Plan of Distribution.”

 19. PARTIAL UNENFORCEABILITY. The invalidity or unenforceability of any
section, paragraph, clause or provision of this Agreement shall not affect the validity or enforceability of any other section, paragraph, clause or provision hereof. If any section, paragraph, clause or provision of this Agreement is for any reason
determined to be invalid or unenforceable, there shall be deemed to be made such minor changes (and only such minor changes) as are necessary to make it valid and enforceable. 
 20. GENERAL. This Agreement constitutes the entire agreement of the parties to this Agreement and supersedes all prior written or oral and all contemporaneous oral
agreements, understandings and negotiations with respect to the subject matter hereof. In this Agreement, the masculine, feminine and neuter genders and the singular and the plural include one another. The section headings in this Agreement are for
the convenience of the parties only and will not affect the construction or interpretation of this Agreement. This Agreement may be amended or modified, and the observance of any term of this Agreement may be waived, only by a writing signed by the
Company and the Representative. 
 21. RESEARCH ANALYST
INDEPENDENCE. The Company acknowledges that each of the Placement Agent’s research analysts and research departments are required to be independent from its investment banking division and are subject to
certain regulations and internal policies, and that each of the Placement Agent’s research analysts may hold views and make statements or investment recommendations and/or publish research reports with respect to the Company and/or the offering
that differ from the views of their investment banking division. The Company hereby waives and releases, to the fullest extent permitted by law, any claims that the Company may have against any Placement Agent with respect to any conflict of
interest that may arise from the fact that the views expressed by its independent research analysts and research departments may be different from or inconsistent with the views or advice communicated to the Company by such Placement Agent’s
investment banking division. The Company acknowledges that each Placement Agent is a full service securities firm and as such from time to time, subject to applicable securities laws, rules and regulations, may effect transactions for its own
account or the account of its customers and hold long or short positions in debt or equity securities of the Company; provided, however, that nothing in this Section 21 shall relieve any Placement Agent of any responsibility or liability
it may otherwise bear in connection with activities in violation of applicable securities laws, rules or regulations. 

  
 31 

 22. EFFECTIVENESS OF THIS
AGREEMENT; COUNTERPARTS. This Agreement shall become effective upon the execution and delivery of this Agreement by the parties hereto. This Agreement may be signed in any number of counterparts, each
of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument and such signatures may be delivered by facsimile or PDF format via email. 

  
 32 

 If the foregoing is in accordance with your understanding of the agreement among the
Company and the Placement Agent, kindly indicate your acceptance in the space provided for that purpose below. 
  

			
	Very truly yours,
	
	 AMPIO PHARMACEUTICALS, INC.

		
	 By:
	 	 /s/ Michael Macaluso

		 	Name: Michael Macaluso
		 	Title: Chairman of the Board

 Accepted as of the date 
 first above written: 
  

			
	FORDHAM FINANCIAL MANAGEMENT, INC.
		
	By:	 	 /s/ William Baquet

		 	Name: William Baquet
		 	Title: President & CEO

  

			
	SUMMER STREET RESEARCH PARTNERS
		
	By:	 	 /s/ Alfred J. Sollami

		 	Name: Alfred J. Sollami
		 	Title: President & CEO

  

			
	EMERGING GROWTH EQUITIES, LTD.
		
	By:	 	 /s/ Gregory J. Berlacher

		 	Name: Gregory J. Berlacher
		 	Title: President & CEO

  
 33 

 SCHEDULE A 

Pricing Information 

Number of Shares sold: 2,220,255 
 Purchase
Price per Share: $4.25 

  
 34 

 EXHIBIT A 

Form of Subscription Agreement 
 [provided as Exhibit 10.2] 

  
 35

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