Document:

Purchase and Sale Agreement dated September 24, 2008

 Exhibit 4.1 
 EXECUTION VERSION 
 PURCHASE AND SALE AGREEMENT 
 Plains Exploration & Production Company, 
 a Delaware corporation 
 and 
 Certain Affiliated Entities 
 As Sellers 
 and 
 OXY USA Inc., 

a Delaware corporation 
 As Buyer

 September 24, 2008 

 PURCHASE AND SALE AGREEMENT 
 TABLE OF CONTENTS 
  

					
	 ARTICLE 1
	  	 DEFINITIONS
	  	1
			
	 ARTICLE 2
	  	 SALE AND PURCHASE OF PROPERTIES; EXCLUDED ASSETS
	  	9
	 2.1  
	  	 Sale and Purchase of Properties
	  	9
	 2.2  
	  	 Excluded Assets
	  	12
			
	 ARTICLE 3
	  	 PURCHASE PRICE
	  	13
	 3.1  
	  	 Purchase Price
	  	13
			
	 ARTICLE 4
	  	 ADJUSTMENTS TO PURCHASE PRICE
	  	13
	 4.1  
	  	 Increases in Purchase Price
	  	13
	 4.2  
	  	 Decreases in Purchase Price
	  	14
			
	 ARTICLE 5
	  	 REPRESENTATIONS AND WARRANTIES OF SELLERS
	  	15
	 5.1  
	  	 Organization
	  	15
	 5.2  
	  	 Authority
	  	15
	 5.3  
	  	 No Conflict
	  	15
	 5.4  
	  	 Enforceability
	  	15
	 5.5  
	  	 Contracts
	  	16
	 5.6  
	  	 Litigation and Claims
	  	16
	 5.7  
	  	 Finder’s Fees
	  	16
	 5.8  
	  	 Sale Contracts
	  	16
	 5.9  
	  	 Notices
	  	16
	 5.10
	  	 Imbalances
	  	17
	 5.11
	  	 Property Obligations
	  	17
	 5.12
	  	 Property Operation
	  	17
	 5.13
	  	 Take-or-Pay
	  	17
	 5.14
	  	 Taxes
	  	17
	 5.15
	  	 Timely Receipt
	  	17
	 5.16
	  	 Timely Payment
	  	17
	 5.17
	  	 Outstanding Obligations
	  	17
	 5.18
	  	 Tax Partnerships
	  	18
	 5.19
	  	 Status of Sellers
	  	18
	 5.20
	  	 Sufficient Rights to Operate
	  	18

  

 i 

					
	 5.21
	  	 No Encumbrances
	  	18
	 5.22
	  	 CVGG
	  	18
	 5.23
	  	 YT Ranch
	  	19
	 5.24
	  	 Materials Provided to Buyer
	  	19
			
	 ARTICLE 6
	  	 REPRESENTATIONS AND WARRANTIES OF BUYER
	  	20
	 6.1  
	  	 Organization
	  	20
	 6.2  
	  	 Authority
	  	20
	 6.3  
	  	 No Conflicts
	  	20
	 6.4  
	  	 Enforceability
	  	20
	 6.5  
	  	 Basis of Buyer’s Decision; Property Review
	  	20
	 6.6  
	  	 Buyer’s Experience and Counsel
	  	20
	 6.7  
	  	 Closing Funds
	  	20
	 6.8  
	  	 No Further Distribution
	  	20
	 6.9  
	  	 Buyer’s Ability to Take Title
	  	21
	 6.10
	  	 Buyer’s Ability to Operate
	  	21
	 6.11
	  	 Finder’s Fees
	  	21
			
	 ARTICLE 7
	  	 COVENANTS OF SELLERS
	  	21
	 7.1  
	  	 Conduct of Business Pending Closing
	  	21
	 7.2  
	  	 Access
	  	22
	 7.3  
	  	 H-S-R Act
	  	22
	 7.4  
	  	 Satisfaction of Conditions
	  	23
	 7.5  
	  	 Consents and Approvals
	  	23
	 7.6  
	  	 Transition Services
	  	23
			
	 ARTICLE 8
	  	 COVENANTS OF BUYER
	  	23
	 8.1  
	  	 H-S-R Act
	  	23
	 8.2  
	  	 Satisfaction of Conditions
	  	23
	 8.3  
	  	 FERC Liability
	  	23
			
	 ARTICLE 9
	  	 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS
	  	24
	 9.1  
	  	 Representations and Warranties
	  	24
	 9.2  
	  	 Covenants
	  	24
	 9.3  
	  	 No Litigation
	  	24
	 9.4  
	  	 H-S-R Act
	  	24

  

 ii 

					
			
	 ARTICLE 10
	  	 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER
	  	24
	 10.1  
	  	 Representations and Warranties
	  	24
	 10.2  
	  	 Covenants
	  	24
	 10.3  
	  	 No Litigation
	  	25
	 10.4  
	  	 H-S-R Act
	  	25
	 10.5  
	  	 Release of Liens
	  	25
	 10.6  
	  	 Consents and Approvals
	  	25
			
	 ARTICLE 11
	  	 TITLE MATTERS
	  	25
	 11.1  
	  	 Title Defect Notice
	  	25
	 11.2  
	  	 Determination of Title Defects and Defect Values
	  	25
	 11.3  
	  	 Calculation of Defect Value
	  	27
	 11.4  
	  	 Exclusion of Properties Subject to Title Defects
	  	28
	 11.5  
	  	 Purchase Price Adjustment for Title Benefits
	  	28
	 11.6  
	  	 LLC Interests Title Defects
	  	29
			
	 ARTICLE 12
	  	 ENVIRONMENTAL MATTERS
	  	29
	 12.1  
	  	 Presence of Wastes, NORM, Hazardous Substances and Asbestos
	  	29
	 12.2  
	  	 Environmental Assessment
	  	29
	 12.3  
	  	 Notice of Adverse Environmental Conditions
	  	30
	 12.4  
	  	 Determination of Adverse Environmental Conditions and Remediation Values
	  	30
	 12.5  
	  	 Exclusion of Properties Subject to Adverse Environmental Conditions
	  	32
	 12.6  
	  	 Latigo Arbitration
	  	32
	 12.7  
	  	 LLC Interests Adverse Environmental Conditions
	  	32
			
	 ARTICLE 13
	  	 SUSPENSE FUNDS HELD BY SELLERS
	  	32
	 13.1  
	  	 Suspended Funds
	  	32
			
	 ARTICLE 14
	  	 CLOSING
	  	33
	 14.1  
	  	 The Closing
	  	33
	 14.2  
	  	 Closing Statement
	  	33
	 14.3  
	  	 Closing Deliveries
	  	33
			
	 ARTICLE 15
	  	 POST-CLOSING ADJUSTMENTS
	  	34
	 15.1  
	  	 Final Settlement Statement
	  	34
	 15.2  
	  	 Arbitration
	  	34
	 15.3  
	  	 Payment of Final Purchase Price
	  	34

  

 iii 

					
			
	 ARTICLE 16
	  	 ALLOCATION OF RISK
	  	35
	 16.1  
	  	 Sellers’ Indemnity
	  	35
	 16.2  
	  	 Survival of Sellers’ Representations and Warranties
	  	37
	 16.3  
	  	 Buyer’s Indemnity
	  	37
	 16.4  
	  	 Assumption by Buyer
	  	37
	 16.5  
	  	 Limitations of Warranties
	  	38
	 16.6  
	  	 Gas Balancing
	  	39
	 16.7  
	  	 Notice of Claims
	  	39
	 16.8  
	  	 Defense of Claims
	  	39
			
	 ARTICLE 17
	  	 RISK OF LOSS
	  	40
	 17.1  
	  	 Casualty Loss
	  	40
	 17.2  
	  	 Buyer’s Risk of Loss
	  	40
			
	 ARTICLE 18
	  	 TERMINATION AND REMEDIES
	  	40
	 18.1  
	  	 Termination
	  	40
	 18.2  
	  	 Effect of Termination
	  	41
	 18.3  
	  	 Specific Performance and Other Remedies
	  	41
			
	 ARTICLE 19
	  	 ADDITIONAL COVENANTS
	  	42
	 19.1  
	  	 Further Assurances
	  	42
	 19.2  
	  	 Access to Records by Seller
	  	42
	 19.3  
	  	 Use of Sellers’ Name
	  	42
	 19.4  
	  	 Sellers’ Employees
	  	42
			
	 ARTICLE 20
	  	 ARBITRATION
	  	42
	 20.1  
	  	 Determination
	  	42
	 20.2  
	  	 Decision Binding
	  	43
			
	 ARTICLE 21
	  	 MISCELLANEOUS
	  	43
	 21.1  
	  	 Notice
	  	43
	 21.2  
	  	 Governing Law
	  	44
	 21.3  
	  	 Assignment
	  	44
	 21.4  
	  	 Entire Agreement
	  	44
	 21.5  
	  	 Amendment; Waiver
	  	44
	 21.6  
	  	 Severability
	  	45
	 21.7  
	  	 Construction
	  	45
	 21.8  
	  	 Confidentiality
	  	45

  

 iv 

					
	 21.9  
	  	 Standstill
	  	45
	 21.10
	  	 Headings
	  	46
	 21.11
	  	 Counterparts
	  	46
	 21.12
	  	 Expenses, Fees and Taxes
	  	46
	 21.13
	  	 Tax-Deferred Exchange Option
	  	47
	 21.14
	  	 Intentionally omitted
	  	47
	 21.15
	  	 Intentionally omitted
	  	47
	 21.16
	  	 Public Announcements
	  	47
	 21.17
	  	 Limitation on Damages
	  	47

  

 v 

 Exhibits and Schedules: 
  

			
	Exhibit A	 	 Leases and Fee Interests

	Exhibit B	 	 Wells; WI/RI; Allocated Values

	Exhibit C	 	 Form of Assignment

	Exhibit D	 	 Non-foreign Affidavit

	Exhibit E	 	 Form of Transition Service Agreement

	Exhibit F	 	 Intentionally Omitted

	Exhibit G	 	 Intentionally Omitted

	Exhibit H	 	 Form of LLC Interest Assignment

	Exhibit I	 	 Form of Termination Agreement

	Exhibit J-1	 	 Intentionally Omitted

	Exhibit J-2	 	 Intentionally Omitted

	Exhibit K	 	 Form of Office Lease Assignment

		
	Schedule 1.1	 	 Sellers Individuals with “Knowledge”

	Schedule 5.3	 	 Consents; Preferential Purchase Rights

	Schedule 5.5	 	 Material Contracts

	Schedule 5.6	 	 Litigation

	Schedule 5.9	 	 Enforcement Actions

	Schedule 5.10	 	 Gas Imbalances

	Schedule 5.12	 	 Well Compliance

	Schedule 5.13	 	 Take or Pay Obligations

	Schedule 5.17	 	 Obligations

	Schedule 5.18	 	 Properties Subject to Partnership Reporting

	Schedule 5.22	 	 CVGG Exceptions

	Schedule 5.23	 	 YT Ranch

	Schedule 11.1	 	 Buyer Individuals with Knowledge

	Schedule 19.4	 	 Certain Employees

  

 vi 

 PURCHASE AND SALE AGREEMENT 
 This Purchase and Sale Agreement (“Agreement”) is made and entered into on September 24, 2008, by and among
Plains Exploration & Production Company, a Delaware corporation (“PXP”), Plains Resources Inc., a Delaware corporation (“PRI”), PXP Hell’s Gulch LLC, a Delaware limited
liability company (“Hell’s Gulch LLC”), PXP East Plateau LLC, a Delaware limited liability company (“East Plateau LLC”), PXP Brush Creek LLC, Delaware limited liability company (“Brush
Creek LLC”), PXP Piceance LLC, a Delaware limited liability company (“Piceance LLC”), Pogo Producing Company LLC, a Delaware limited liability company (“Pogo”), Pogo Panhandle 2004 LP, a
Texas limited partnership (“Pogo 2004”), and Latigo Petroleum Texas, LP, a Texas limited partnership (“Latigo”) (individually each may be referred to as a “Seller”
and collectively the “Sellers”), and OXY USA Inc., a Delaware corporation (“Buyer,” and together with Sellers, the “Parties”).

 ARTICLE 1 
 DEFINITIONS 
 “Adverse Environmental Condition” means any contamination or condition
exceeding regulatory limits and not otherwise authorized by permit or law, resulting from any discharge, release, production, storage, treatment, seepage, escape, leakage, emission, emptying, leaching or any other activities on, in or from any
Property, or the migration or transportation from other lands to any Property, of any wastes, pollutants, contaminants, hazardous materials or other materials or substances subject to regulation relating to the protection of the environment that
require remediation based upon the condition at the Effective Time pursuant to any current federal, state or local laws or statutes, including Environmental Laws. Neither the foregoing definition nor any provision of this Agreement that incorporates
this defined term shall abrogate or limit Sellers’ or Buyer’s respective indemnity and hold harmless obligations under Section 16.1 and 16.3. 
 “Adverse Environmental Condition Notice” is defined in Section 12.3. 
 “Adverse Environmental Condition Removal” is defined in Section 12.5. 
 “affiliate” means any person which (a) controls either directly or indirectly a Party, or (b) is
controlled directly or indirectly by such Party, or (c) is directly or indirectly controlled by a person which directly or indirectly controls such Party, for which purpose “control” shall mean the right to exercise fifty percent
(50%) or more of the voting rights in the appointment of the directors or similar representation of a person, and for which purpose and for the purpose of other provisions of this Agreement “person” shall mean any individual,
corporation, government, partnership, company, group, authority, association or other entity. 
 “Agreement” is defined in the preamble. 
 “Allocated
Value” with respect to any Property means the value allocated to such Property as set forth on Exhibit B, or in the case of a Property to which a value has not been assigned in such Exhibit, “Allocated Value”
means the value thereof (for purposes of this Agreement) mutually agreed by the Parties, acting reasonably, and with respect to the LLC Interests, the value allocated to such LLC Interests as set forth on Exhibit B. 

 “AMI Contracts” means any Contract under this Agreement or the
December 2007 PSA with an area of mutual interest or non-competition provision that does not appear on Schedule 5.5 or did not appear on Schedule 2.1.3 of the December 2007 PSA. 
 “Assignment” is defined in Section 14.3.1. 
 “Brush Creek LLC” is defined in the preamble. 
 “Business Day” means each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which banks in
Houston, Texas, are generally authorized or obligated, by law or executive order, to close. 
 “Buyer”
is defined in the preamble. 
 “Buyer Group” means Buyer, its affiliates, and Buyer’s and its
affiliates’ respective employees, officers, directors, agents and representatives. 
 “Casualty
Loss” is defined in Section 17.1. 
 “Claim” means any loss, cost or
expense (including reasonable attorneys’ fees, experts’ fees and court costs), damage, obligation, claim, liability or cause of action. 
 “Claim Notice” is defined in Section 16.7. 
 “Closing” is
defined in Section 14.1. 
 “Closing Date” is defined in Section 14.1.

 “Code” is defined in Section 5.18. 
 “Collbran Valley Gas Segment” means the segment of CVGG’s Collbran Valley Gas Gathering System lying between
the Anderson Gulch Processing Plant and the interconnection with TransColorado Gas Transmission Company and between the Anderson Gulch Processing Plant and the interconnection with Rocky Mountain Natural Gas LLC. 
 “Confidentiality Agreement” is defined in Section 21.4. 
 “Contracts” is defined in Section 2.1.3. 
 “CVGG” means Collbran Valley Gas Gathering, LLC, a Colorado limited liability company. 
 “CV Pipeline LLC” means PXP CV Pipeline LLC, a Delaware limited liability company. 
 “Data” is defined in Section 7.2. 
 “Debt Instrument” shall mean any indenture, mortgage, loan, credit or sale-leaseback or similar financial contract.

  

 2 

 “December 2007 PSA” shall mean that certain Purchase and Sale Agreement between
Buyer and Sellers dated December 14, 2007. 
 “Defect Notification Deadline” means
5:00 p.m., Houston, Texas time, on the latest Business Day that is not less than fifteen days prior to the Closing Date. 
 “Defect Value” means with respect to each Property that is agreed or determined to be subject to a Title Defect, the lesser of (a) the Allocated Value of the Property subject to such Title Defect
and (b) the amount determined in accordance with Sections 11.2 and 11.3 with respect to such Title Defect. 
 “Easements” is defined in Section 2.1.4. 
 “East Plateau
LLC” is defined in the preamble. 
 “Effective Time” is defined in
Section 2.1. 
 “Electing Party” is defined in Section 21.13. 
 “Environmental Laws” means all applicable laws and regulations concerning or relating to the pollution or
protection of the environment, including the Clean Air Act, the Comprehensive Environmental Response, Compensation and Liability Act of 1980 (“CERCLA”), the Federal Water Pollution Control Act, the Safe Drinking
Water Act, the Toxic Substance Control Act, the Hazardous and Solid Waste Amendments Act of 1984, the Superfund Amendments and Reauthorization Act of 1986, the Hazardous Materials Transportation Act, the Clean Water Act, the National Environmental
Policy Act, the Endangered Species Act, the Fish and Wildlife Coordination Act, the National Historic Preservation Act and the Oil Pollution Act of 1990, as such laws may be amended from time to time and all regulations, orders, rulings, directives,
requirements and ordinances promulgated thereunder. 
 “ERISA Liability” means any obligation,
liability or Losses attributable to or arising out of (a) Sellers’ or their affiliates’ employment relationship with the employees of Sellers or their affiliates prior to Closing, (b) Sellers’ or their affiliates’
employee benefit plans applicable to such employees, and (c) Sellers’ or their affiliates’ responsibilities under the Employee Retirement Income Security Act of 1974, as amended, applicable to such employees and, in each instance, as
to CV Pipeline LLC and CVGG, only to the extent attributable to Sellers’ direct or indirect interest therein to be conveyed to Buyer pursuant to this Agreement. 
 “Excluded Assets” is defined in Section 2.2. 
 “Facilities” is defined in Section 2.1.2. 
 “Fee
Interests” is defined in Section 2.1.8. 
 “FERC” means the United
States Federal Energy Regulatory Commission. 
 “FERC Liability” means to the extent attributable to
Sellers’ direct or indirect interest in CVGG conveyed to Buyer pursuant to this Agreement, any obligation, liability or Losses 

  

 3 

 
attributable to or arising out of any order issued by the FERC, or any Stipulation and Consent Agreement or other settlement entered into with the
FERC’s Office of Enforcement, in connection with: (a) the FERC Abbreviated Application for Limited Jurisdiction Certificate and Request for Waivers of Regulatory Requirements filed with FERC or a certificate to own and operate the Collbran
Valley Gas Segment pursuant to Section 7 of the Natural Gas Act, as applicable; (b) any violation of the Natural Gas Act or orders or regulations issued thereunder with respect to the operation of the Collbran Valley Gas Segment as a
gathering facility or intrastate pipeline; and (c) any violation of the Natural Gas Policy Act of 1978 or orders or regulations issued thereunder with respect to the operation of the Collbran Valley Gas Segment as a gathering facility or
intrastate pipeline. 
 “Final Settlement Statement” is defined in Section 15.1.

 “Franchise Tax Liability” means any tax imposed by a state on Sellers’, YT Ranch’s, CV
Pipeline LLC’s or CVGG’s (and as to CV Pipeline LLC and CVGG, only to the extent attributable to Sellers’ direct or indirect interest therein to be conveyed to Buyer pursuant to this Agreement), or any of their affiliates’ net
income and/or capital for the privilege of engaging in business in that state. 
 “GAAP” means United
States generally accepted accounting principles. 
 “Good and Defensible Title” means such title that
(a) (i) entitles Sellers to receive not less than the Net Revenue Interest set forth in Exhibit B in all Hydrocarbons produced from the Wells, units, Leases or Fee Interests described in Exhibit B at any time during the
productive life thereof and (ii) obligates Sellers to bear not more than the Working Interest set forth in Exhibit B in the Wells, units, Leases or Fee Interests described in Exhibit B (unless there is a corresponding increase in
the Net Revenue Interest) at any time during the productive life or abandonment thereof, (b) with respect to all Properties not described on Exhibit B, is defensible, and (c) is free and clear of all liens and encumbrances, except
for Permitted Encumbrances, other than Permitted Encumbrances that consist of consents and approvals set forth on Schedule 5.3, unless and until such consents and approvals are obtained. Notwithstanding anything else herein, title to a
Property affected or burdened by a sliding-scale royalty disclosed on Exhibit B shall not be considered to be less than Good and Defensible Title as a result of the effect of any such royalty on Sellers’ Net Revenue Interest in the
affected Property. 
 “Grand Junction Office” means the office space leased pursuant to the Office
Lease. 
 “H-S-R Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976. 
 “Hedge Contract” shall mean any contract to which any Seller or any of its affiliates is a party with respect to
any swap, forward, future or derivative transaction or option or similar agreement, whether exchange traded, “over-the-counter” or otherwise, involving, or settled by reference to, one or more rates, currencies, commodities, equity or debt
instruments or securities, or economic, financial or pricing indices or measures of economic, financial or pricing risk or value or any similar transaction or any combination of these transactions. 
 “Hell’s Gulch LLC” is defined in the preamble. 
  

 4 

 “Hydrocarbons” means oil, gas, natural gas liquids, condensate and
related hydrocarbons, carbon dioxide, sulfur and helium. 
 “Income Tax Liability” means any
obligation, liability or Losses of Sellers, YT Ranch, CV Pipeline LLC or CVGG (and as to CV Pipeline LLC and CVGG, only to the extent attributable to Sellers’ direct or indirect interest therein to be conveyed to Buyer pursuant to this
Agreement), or any of their affiliates attributable to any federal, state, local or foreign income tax measured or imposed on the net income of Sellers or any of their affiliates that was or is attributable to Sellers or any of their
affiliates’ ownership of an interest in or operation of the Properties. 
 “Indemnified Party” is defined in
Section 16.7. 
 “Indemnifying Party” is defined in Section 16.7. 
 “Known to Buyer” means the actual knowledge of any of the individuals identified in Schedule 11.1.

 “Lands” is defined in Section 2.1.1. 
 “Latigo” is defined in the preamble. 
 “Latigo Arbitration” is defined in Section 12.6. 
 “Lease” is defined in Section 2.1.1. 
 “Liquidated Title Defect
Payment” is defined in Section 11.3.3. 
 “LLC Interests” means all of Sellers’
right, title and interest in the issued and outstanding membership interests in CV Pipeline LLC and YT Ranch. 
 “LLC
Assignment” means an Assignment of Limited Liability Company Membership Interest in the form of Exhibit H pursuant to which the LLC Interests will be transferred to Buyer by PRI and Piceance LLC. 
 “Losses” means all damages, losses, liabilities, obligations, payments, amounts paid in
settlement, fines, penalties, costs (including reasonable fees and expenses of attorneys, accountants and other professional advisors, as well as of expert witnesses, and other costs of investigation, preparation and litigation in connection with
any pleading, claim, demand or other action) of any kind or nature whatsoever, whether known or unknown, contingent or vested, or matured or unmatured.  
 “Material Adverse Effect” means an adverse effect (other than resulting from market conditions generally in the oil and gas industry) on the ownership or use of any of the
Properties that would have or has a negative impact of at least $50,000,000 on the value of the Properties. 
 “Material
Contracts” is defined in Section 5.5. 
  

 5 

 “Minimal Defects” means (a) any individual Title Defect with a
Defect Value of less than $100,000, excluding any Title Defect arising from the failure to obtain a consent to assignment or any Title Defect arising from a preferential purchase right, or (b) any individual Adverse Environmental Condition with
a Remediation Value of less than $100,000. 
 “Net Revenue Interest” means an interest in and to the
Hydrocarbons saved, produced and sold from any Well, unit, Lease, or Fee Interest described in Exhibit B. 
 “NORM” means naturally occurring radioactive material. 
 “Office
Lease” means that certain Lease Agreement by and between PXP and Crossroads Venture LLC, dated July 31, 2007, consisting of space in Phase I of the office building located at 760 Horizon Drive, Grand Junction, CO 81506 and that
certain Lease Agreement by and between PXP and Crossroads Venture LLC, dated July 31, 2007, consisting of space in Phase II of said office building. 
 “Outside Date” means April 1, 2009. 
 “Parties” is defined in the preamble. 
 “Permit” is defined in
Section 2.1.6. 
 “Permitted Encumbrances” means: 
 (a) Royalties, overriding royalties, reversionary interests and similar burdens if the cumulative effect of the burdens does not operate to reduce
Sellers’ Net Revenue Interest in a Well, unit, Lease or Fee Interest described in Exhibits A or B at any time during the productive life thereof, below the Net Revenue Interest for such Well, unit, Lease or Fee Interest set forth
in Exhibit B or operate to increase Sellers’ Working Interest in a Well, unit, Lease or Fee Interest described in Exhibit B at any time during the productive life or abandonment thereof, to more than the Working Interest for such
Well, unit, Lease or Fee Interest set forth in Exhibit B (unless there is a corresponding increase in the Net Revenue Interest); 
 (b)
Division orders and sales contracts terminable without penalty upon no more than 30 days notice to the purchaser or as set forth on Schedule 5.5; 
 (c) Required third-party consents to assignment and similar agreements with respect to which waivers or consents (i) are obtained from the appropriate parties prior to Closing or (ii) are routinely obtained
from governmental entities after Closing for transactions of this nature; 
 (d) Materialman’s, mechanic’s, repairman’s,
employee’s, contractor’s, operator’s, tax and other similar liens or charges arising in the ordinary course of business for obligations (i) that are not delinquent or (ii) that if delinquent, are being contested in good
faith by appropriate action of which Buyer is notified in writing before Closing and for which Sellers indemnify Buyer subsequent to Closing; 
  

 6 

 (e) All rights to consent by, required notices to, filings with, or other actions by governmental
entities in connection with the sale or conveyance of oil and gas leases, pipelines or gathering systems or interests therein if they are routinely obtained subsequent to the sale or conveyance; 
 (f) Easements, rights-of-way, servitudes, permits, surface leases and other rights in respect of surface operations that do not materially interfere with
oil and gas operations to be conducted on any Well, unit, Lease or Fee Interest described in Exhibits A or B or operation of any gathering system related thereto; 
 (g) All (i) Material Contracts listed on Schedule 5.5, (ii) other operating agreements, unit agreements, unit operating agreements and
pooling agreements affecting the Properties (except for any terms or provisions thereof that are not usual and customary for agreements of such nature covering oil and gas properties and operations similar to the Properties and current operation
thereof) or (iii) compulsory or commissioner’s pooling or units or pooling designations; provided, however, that the effect of any such documents, pooling or units or pooling designations will not reduce Sellers’ interest with respect
to oil and gas produced from any Well, unit, Lease or Fee Interest described in Exhibits A or B at any time during the productive life thereof, below the Net Revenue Interest set forth in Exhibit B, or increase such
Sellers’ Working Interest in such Well, unit, Lease or Fee Interest at any time during the productive life or abandonment thereof, to more than the Working Interest set forth in Exhibit B for such Well, unit, Lease or Fee Interest
(unless there is a corresponding increase in the Net Revenue Interest); 
 (h) Conventional rights of reassignment prior to release or
surrender requiring notice to the holders of the rights; 
 (i) All rights reserved to or vested in any governmental, statutory or public
authority to control or regulate any gathering systems, Wells, Leases, lands or Fee Interests in any manner, and all applicable laws, rules and orders of any governmental authority; 
 (j) The terms and conditions of the Leases, provided that the effect of the terms and conditions of any Leases do not reduce Sellers’ interest with
respect to oil and gas produced from any Well, unit, Lease or Fee Interest below the Net Revenue Interest set forth in Exhibit B at any time during the productive life of thereof, for such Well, unit, Lease or Fee Interest, or increase
Sellers’ Working Interest in such Well, unit, Lease or Fee Interest at any time during the productive life or abandonment thereof, to more than the Working Interest set forth in Exhibit B for such Well, unit or Lease (unless there is a
corresponding increase in the Net Revenue Interest); 
 (k) All other liens, charges, encumbrances, contracts, agreements, instruments,
obligations, defects and irregularities affecting the Properties which individually or in the aggregate are not such as to interfere materially with the operation, value or use of any of the Property, could not reasonably be expected to prevent or
delay Buyer from receiving the proceeds of production from any of Well, unit, Lease or Fee Interest and which do not reduce Sellers’ interest with respect to Hydrocarbons produced from any Well, unit, Lease or Fee Interest below the Net Revenue
Interest set forth in Exhibit B at any time 

  

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during the productive life thereof, for such Well, unit, Lease or Fee Interest, or increase Sellers’ Working Interest in such Well, unit, Lease or Fee
Interest at any time during the productive life or abandonment thereof, to more than the Working Interest set forth in Exhibits B for such Well, unit, Lease or Fee Interest (unless there is a corresponding increase in the Net Revenue
Interest); 
 (l) Those matters identified in Schedule 5.6, 5.9 and 5.12; 
 (m) Any Title Defects that constitute Minimal Defects; and 
 (n) Any Title Defects Buyer has expressly waived in writing or which are deemed to have become Permitted Encumbrances under Section 11.1. 
 “Piceance LLC” is defined in the preamble. 
 “Pogo” is defined in the preamble. 
 “Pogo 2004” is defined in the preamble. 
 “Preliminary Purchase Price” is defined in Section 14.2. 
 “PRI” is defined in the preamble. 
 “Property” or
“Properties” is defined in Section 2.1. 
 “Purchase
Price” is defined in Section 3.1. 
 “PV-NRI” is defined in
Section 11.3.2. 
 “PXP” is defined in the preamble. 
 “Records” is defined in Section 2.1.7. 
 “Remediation Value” is defined in Section 12.3. 
 “Royalty Interests” is defined in Section 2.1.9. 
 “Sellers” is defined in the preamble. 
 “Seller Group” means Sellers, their respective affiliates, and Sellers and their affiliates’ respective
employees, officers, directors, agents and representatives. 
 “Sellers’ Knowledge”, as it
pertains to either the aggregate knowledge of Sellers or to any Seller, means the actual knowledge of any of the individuals identified in Schedule 1.1. 
 “Sellers’ Retained Liabilities” is defined in Section 16.1. 
 “Tax Deferred Exchange” is defined in Section 21.13. 
  

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 “Tax Return” means any return, form, declaration of estimated tax, report, claim
for refund, or information return or statement relating to taxes, including any schedules or attachment thereto, and including any amendments thereof. 
 “Title Benefit” is defined in Section 11.5. 
 “Title Defect” is defined in Section 11.1. 
 “Title Defect
Notice” is defined in Section 11.1. 
 “Title Defect Removal” is
defined in Section 11.4. 
 “Transfer Taxes” is defined in Section 21.12.1. 
 “Uncured Title Defect” means any Title Defect, other than a Minimal Defect, neither removed pursuant to a Title
Defect Removal, nor cured, not later than two Business Days prior to Closing. 
 “Uncured Title Defects
Value” means the aggregate Defect Value for all Uncured Title Defects. 
 “Unremedied Adverse
Environmental Condition” means any Adverse Environmental Condition, other than a Minimal Defect, that has not been removed pursuant to an Adverse Environmental Condition Removal, and for which Seller has not elected to remediate
under Section 12.4.3. 
 “Unremedied Adverse Environmental Conditions
Value” means the aggregate Remediation Value of all Unremedied Adverse Environmental Conditions. 
 “Well” is defined in Section 2.1.2. 
 “Working
Interest” means, with respect to the Wells, units, Leases or Fee Interests (other than the Royalty Interests) set forth in Exhibits A or B, an interest in and to the full and entire leasehold estate created under
and by virtue of the Leases or, in the case of the Fee Interests only, in and to the full and entire fee estate to the extent specified in Exhibit A and all rights and obligations of every kind and character appurtenant thereto or arising
therefrom, without regard to any valid royalty, overriding royalties, production payments, carried interests, liens, or other encumbrances or charges against production therefrom insofar as such interest in said leasehold or fee estate is burdened
with the obligation to bear and pay costs of operations. 
 “YT Ranch” means YT Ranch LLC, a Colorado limited
liability company. 
 ARTICLE 2 
 SALE AND PURCHASE OF PROPERTIES; EXCLUDED ASSETS 
 2.1 Sale and Purchase of Properties. Subject to the terms and
conditions herein set forth, Sellers agree to sell, assign, convey and deliver to Buyer, and Buyer agrees to purchase and acquire from Sellers at the Closing, but effective as of 7:00 a.m. local time where the 

  

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Properties are located on December 1, 2008 (the “Effective Time”) for purposes of the Purchase Price calculations
set forth in this Agreement, all of Sellers’ rights, titles, interests and obligations in and to the following, other than the Excluded Assets: 
 2.1.1. The oil, gas, other Hydrocarbon and mineral leases, and the leasehold estates and subleases created thereby, described in Exhibit A (collectively, the “Leases”), and
all of the lands covered by the Leases (“Lands”), together with corresponding interests in and to all the property and rights incident thereto, including all rights in any pooled or unitized acreage by virtue of
the Lands being a part thereof, all tenements and hereditaments belonging to the Leases, pools and units, all production from the pool or unit allocated to any such Lands; and all interests in any wells within the pool or unit associated with the
Lands; and all reversionary interests, convertible interests, net profits interests and gas imbalance volumes owed to a Seller by a third party as of the Effective Time; 
 2.1.2. All producing, non-producing, shut-in and abandoned oil and gas wells, other Hydrocarbon wells, salt water disposal wells,
injection wells, observations wells, co-op wells, well bores and water wells described in Exhibit B, and the proration units associated therewith, and/or located on the Leases, the Lands or the Fee Interests or lands pooled or unitized
therewith, and the proration units associated therewith (“Wells”); and all pipelines, flowlines, gathering lines (up to such lines’ connection with the gathering systems owned by CVGG), plants, processing
systems, buildings, compressors, meters, tanks, machinery, tools, utility lines, personal property, equipment, fixtures, and improvements located on and appurtenant to the Leases, the Lands or the Fee Interests or elsewhere insofar as they are used
or obtained in connection with the ownership, operation, maintenance or repair of the Leases or production of Hydrocarbons or the Fee Interests or relate to the production, treatment, sale, or disposal of Hydrocarbons or water produced from the
Leases, the Lands or the Fee Interests or attributable thereto (the “Facilities”); 
 2.1.3. All farmout and farmin agreements, operating agreements, drilling contracts, production sales and purchase contracts, gathering, processing and or treating agreements, saltwater disposal agreements, surface leases, division and
transfer orders, and (to the extent transferable by Sellers without any expense to Sellers not advanced or reimbursed by Buyer or material restrictions under third party agreements) all other written contracts, contractual rights, interests and
other written agreements covering or affecting any or all of the Leases, Lands, Wells, Facilities or Fee Interests or the production, handling or transportation of oil, gas, other Hydrocarbon or other mineral substances attributable to the
Properties, including the Carry and Earning Agreement, dated May 15, 2008, and amended on June 10, 2008, and June 27, 2008, by and between PXP, Buyer and EnCana Oil & Gas (USA) Inc., but excluding all Hedge Contracts and Debt
Instruments (the “Contracts”); 
 2.1.4. All easements, rights-of-way, licenses,
authorizations, permits, and similar surface and other rights and interests applicable to, or used or useful in connection with, any or all of the Leases, Lands, Wells, Facilities or Fee Interests, including those easements or rights-of-way
identified on Schedule 5.5 (the “Easements”); 
  

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 2.1.5. All Hydrocarbons (or the proceeds from the sale of Hydrocarbons) produced after
the Effective Time, attributable to Sellers’ interest in the Leases, Lands, Wells, Facilities, Contracts or Fee Interests; 
 2.1.6. To the extent assignable in whole or in part, the concurrent benefit of all environmental and other governmental (whether federal, state or local) permits, licenses, orders, authorizations, franchises and related instruments or
rights relating to the ownership, operation or use of any gathering systems, Leases, Lands, Wells, Facilities or Fee Interests (the “Permits”); 
 2.1.7. To the extent transferable without material restriction or payment of a transfer or licensing fee under third party agreements not
advanced or reimbursed by Buyer, all books, files, records, correspondence, studies, surveys, reports, geologic, proprietary geophysical and seismic data (including raw data and any interpretative data or information relating to such geologic,
geophysical and seismic data) and other data (in each case whether in written or electronic format) in the actual possession or control of Sellers or which Sellers have the right to obtain (either without the payment of money or delivery of other
consideration or unduly burdensome effort or, upon Buyer’s election, at Buyer’s expense) and relating to the operation of the Leases, Lands, Wells, Facilities or Fee Interests, including all title records, prospect information, title
opinions, title insurance reports/policies, property ownership reports, customer lists, supplier lists, sales materials, promotional materials, operational records, technical records, production and processing records, division order, lease, land
and right-of-way files, accounting files and contract files (the “Records”); 
 2.1.8.
All fee interests to the surface and in oil, gas, other Hydrocarbons or other minerals, including rights under grant deeds, mineral deeds, conveyances or assignments, as set forth on Exhibit A (“Fee
Interests”); 
 2.1.9. All royalties, overriding royalties, production payments, rights to the royalties
in kind, or other interests in production of oil, gas, other Hydrocarbons or other minerals excluding working interests, as set forth on Exhibits A and B (the “Royalty Interests”); 
 2.1.10. All partnership interests (tax, state law or otherwise) affecting any Properties; 
 2.1.11. To the extent assignable, all rights to indemnities (except with respect to Seller Retained Liabilities) and releases from third
parties relating to the Properties; provided, however, that Sellers undertake to use commercially reasonable efforts to pursue any available remedies under any such non-assignable rights to indemnities, to keep Buyer reasonably informed from time to
time regarding the status of such efforts and to transfer the economic benefit of any recovery thereunder to the extent attributable to the Properties promptly to the Buyer; 
  

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 2.1.12. To the extent assignable, all insurance proceeds under existing policies of
insurance, if any, relating to the Properties, but only to the extent that such benefits relate to liabilities for which Buyer is responsible under this Agreement; 
 2.1.13. All other assets and properties of Sellers used or held for use in the extraction, transportation or processing of Hydrocarbons
from the Properties; 
 2.1.14. The Office Lease; and 
 2.1.15. The LLC Interests. 
 The interest in
the real and personal properties, rights, titles, and interests described in Sections 2.1.1 through 2.1.15, that are to be sold, assigned, conveyed and delivered to Buyer subject to the limitations and terms expressly set forth herein
and in Exhibits A and B, are hereinafter collectively called the “Properties” or, individually, a “Property”, except for the Excluded Assets set forth below in
Section 2.2. The Properties shall not include any of the interests previously conveyed by Sellers to Buyer pursuant to the December 2007 PSA. 
 2.2 Excluded Assets. Sellers specifically exclude from this transaction all reservations and exceptions listed as such in Exhibit A and the following (all such reservations and exceptions listed on
Exhibit A and all of the exclusions listed below in this Section 2.2 are collectively referred to herein as the “Excluded Assets”): 
 2.2.1. Sellers reserve all counterclaims, cross-claims, offsets or defenses and similar rights with respect to all Sellers’ Retained
Liabilities described in Sections 16.1.2, through 16.1.6, 16.1.8, 16.1.9 or 16.1.10; 
 2.2.2. All Hedge Contracts and Debt Instruments; 
 2.2.3. Intentionally omitted; 
 2.2.4. All rights and causes of action arising, occurring or existing in favor of any Seller to the extent attributable to the period
prior to the Effective Time or arising out of the operation of or production from the Properties prior to the Effective Time (including, but not limited to, any and all contract rights, claims, receivables, revenues, recoupment rights, recovery
rights, accounting adjustments, mispayments, erroneous payments or other claims of any nature in favor of any Seller (other than indemnity claims to be conveyed pursuant to Section 2.1.11) and relating and accruing to the period prior to
the Effective Time); 
 2.2.5. Any Seller’s general corporate records (even if referring to the Properties), income tax
records and information entitled to legal privilege in favor of a Seller or any affiliate of a Seller; 
 2.2.6. Any refund of
costs, taxes or expenses borne by any Seller attributable to the period prior to the Effective Time, except to the extent Buyer has indemnified Seller for such costs, taxes or expenses, in which case such Seller shall promptly transfer such refund
to Buyer to the extent attributable to the Properties; 
  

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 2.2.7. All computer, printer, telephone, and server equipment located at the Grand
Junction Office and all other computer or communications software or intellectual property (including tapes, data and program documentation and all tangible manifestations and technical information relating thereto) owned, licensed or used by any
Seller and which are not in sole service on the Properties, other than the Records; 
 2.2.8. Any logo, service mark,
copyright, trade name or trademark of or associated with any Seller or any affiliate of any Seller of any business of Seller or of any affiliate of any Seller; 
 2.2.9. Motor vehicles and other rolling stock by any Seller and which are not in sole service on the Properties; 
 2.2.10. Intentionally omitted; and 
 2.2.11. All geologic, geophysical and seismic data that is proprietary to any of the Sellers; provided, however, each respective Seller shall grant Buyer a perpetual, non-exclusive, royalty-free, assignable license,
at no additional charge, granting full rights of use and access to such data. 
 ARTICLE 3 
 PURCHASE PRICE 
 3.1 Purchase
Price. The total purchase price for the Properties shall be One Billion Two Hundred Fifty Million Dollars ($1,250,000,000.00) (the “Purchase Price”), subject to any applicable adjustments as hereinafter provided.

 ARTICLE 4 
 ADJUSTMENTS TO PURCHASE PRICE 
 The Purchase Price shall be adjusted as follows: 
 4.1 Increases in Purchase Price. The Purchase Price shall be increased by an amount equal to the sum of the following amounts: 
 4.1.1. the amount of any costs and expenses actually paid or to be paid by Sellers and their affiliates related to owning, operating,
producing and maintaining the Properties from and after the Effective Time, including capital expenditures, plus a fixed overhead charge of $250,000 per month, prorated for any partial month prior to the Closing Date; 
 4.1.2. the amount of all prepaid expenses, including ad valorem, property and similar taxes and assessments based upon or measured by
ownership, relating to the Properties, paid by Sellers and attributable to periods of time after the Effective Time; 
 4.1.3.
the amount of all upward adjustments to the Purchase Price provided for in this Agreement, including any Title Benefit adjustments as set forth in Section 11.5; 
  

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 4.1.4. the value of the following items, less any applicable severance taxes and
royalties which are the obligation of Buyer: (a) all oil, gas and other Hydrocarbons in pipelines or in tanks above the pipeline sales connection, in each case at the Effective Time that is credited to the Properties, (b) all unsold
inventory of gas plant products attributable to the Properties at the Effective Time, each such value to be the market or, if applicable, the contract price in effect as of the Effective Time, and (c) all gas imbalance volumes related to the
Properties owed to a Seller by a third party as of the Effective Time, multiplied by $3.50 per mmbtu; 
 4.1.5. the aggregate
amount of any expense reimbursements or capital contributions made by CV Pipeline LLC to CVGG to the extent such reimbursements or contributions are fairly attributable to the period after the Effective Time and are attributable to PRI’s
interest in CV Pipeline LLC; 
 4.1.6. the amount of all proceeds paid or to be paid to Buyer from the sale of production, net
of all applicable taxes and royalties paid or to be paid by Buyer, attributable to the Properties for periods of time prior to the Effective Time; and 
 4.1.7. the amount of any (i) security deposits or (ii) prepaid rents attributable to any period following the Closing Date, paid by any Seller pursuant to the Office Lease. 
 4.2 Decreases in Purchase Price. The Purchase Price shall be decreased by an amount equal to the sum of the following amounts: 
 4.2.1. the amount of all proceeds paid or to be paid to Sellers or their affiliates, including proceeds from the sale of production, net
of all applicable taxes and royalties paid or to be paid by Sellers or their affiliates, attributable to the Properties for periods of time after the Effective Time; 
 4.2.2. an amount equal to all ad valorem, property and similar taxes and assessments based upon or measured by ownership, and other
expenses to be paid by Buyer relating to the Property, that are unpaid as of the Closing Date and attributable to periods of time prior to the Effective Time; 
 4.2.3. the amounts, if any, relating to (a) Casualty Losses pursuant to Section 17.1, (b) Title Defect Removals
under Article 11; or (c) Adverse Environmental Condition Removal under Article 12; 
 4.2.4. the amount, if
any, by which the aggregate Uncured Title Defects Value and Unremedied Adverse Environmental Conditions Value exceeds two and three-quarter percent (2.75%) of the Purchase Price; 
 4.2.5. all gas imbalance volumes related to the Properties owed by a Seller to a third party as of the Effective Time, multiplied by $3.50
per mmbtu; 
 4.2.6. any distributions received by PRI from CV Pipeline LLC, attributable to CVGG operations, to the extent
such distributions are fairly attributable to the period after the Effective Time and are attributable to PRI’s interest in CV Pipeline LLC; 
  

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 4.2.7. the amounts, if any, contemplated by Section 11.2.3; 
 4.2.8. Intentionally omitted; and 
 4.2.9. any other amount provided for in this Agreement. 
 ARTICLE 5 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
 Sellers jointly and severally represent and warrant to Buyer that each of the statements made in this Article 5 is true and correct as of the date of this Agreement and will be true and correct as of the Closing Date. To the extent
any of Sellers’ representations or warranties relate to Properties which are not operated by a Seller, such representations and warranties are made solely to Sellers’ Knowledge, notwithstanding anything contained in this Agreement to the
contrary. 
 5.1 Organization. Each of PXP and PRI is a corporation validly existing and in good standing under the laws of the State
of its incorporation or organization. Each other Seller is a limited liability company or limited partnership validly existing and in good standing under the laws of the State of its formation. Each Seller is in good standing and duly qualified to
do business in each other jurisdiction in which the conduct of its business or ownership or leasing of its properties makes such qualification or registration necessary. Each of CVGG, CV Pipeline LLC and YT Ranch is a limited liability company duly
organized, validly existing and in good standing under the laws of the state of its formation. 
 5.2 Authority. Each Seller has full
power to enter into and perform its obligations under this Agreement and has taken all proper corporate, limited liability company or limited partnership action to authorize entering into this Agreement and performing its obligations hereunder. To
Sellers’ Knowledge, other than as set forth on Schedule 5.22, each of CVGG, CV Pipeline LLC and YT Ranch has all requisite power and authority to carry on its business as presently conducted. 
 5.3 No Conflict. Neither the execution and delivery of this Agreement, nor the consummation of the transactions contemplated hereby, nor the
compliance with the terms hereof will result in any default under any material agreement or instrument to which any Seller is a party (including its governing documents) or by which any of the Properties is bound, or violate any order, writ,
injunction, decree, statute, rule or regulation applicable (i) to any Seller, (ii) to Sellers’ Knowledge, to CVGG, (iii) to any of the Properties or (iv) to Sellers’ Knowledge, to CVGG’s assets. Schedule 5.3
sets forth those consents to assignment, preferential rights or waivers of preferential rights to purchase from third parties that are required in connection with the consummation of the transactions contemplated hereby. There are no governmental
consents required in connection with the consummation of the transactions contemplated hereby, other than approvals from governmental entities customarily obtained post-closing and consents required under the H-S-R Act. 
 5.4 Enforceability. This Agreement has been duly executed and delivered on behalf of each Seller and constitutes (and the Assignment(s), when
executed and delivered at Closing, will constitute) the legal, valid and binding obligation of such Seller, enforceable in accordance with its terms, except as limited by bankruptcy or other similar laws applicable generally to creditors’
rights and as limited by general equitable principles. 
  

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 5.5 Contracts. Schedule 5.5 describes (a) all area of mutual interests agreements and
agreements that include non-competition restrictions or other similar restrictions on doing business, all purchase or sale agreements (other than with respect to production of Hydrocarbons and the disposition of field equipment in the ordinary
course), partnership (other than tax partnerships), joint venture and/or exploration or development program agreements relating to Wells, Leases or Fee Interests or otherwise included in the Properties or by which the Properties are bound,
(b) all of the production sales, transportation, marketing and processing agreements relating to the Wells, Leases or Fee Interests, other than such agreements which are terminable by Sellers without penalty on 60 or fewer days’ notice
without the payment of money or delivery of other consideration or unduly burdensome effort, (c) any contracts or agreements with any affiliate of any Seller that relate to the Properties or by which the Properties are bound, (d) any
contracts or agreements burdening the Properties which could reasonably be expected to obligate Sellers to expend in excess of $1,000,000 in any calendar year, and (e) other than contracts governing the sale of Hydrocarbons, any contracts or
agreements related to the Properties under which Sellers or their affiliates could reasonably be expected to receive in excess of $1,000,000 of revenues net of direct expenses in any calendar year ((a) – (e) collectively, the
“Material Contracts”). Except as disclosed in Schedule 5.5, no Seller has received written notice of any default under the Office Lease or of the Material Contracts and the Office Lease, Material Contracts, the Leases
and the Easements are in full force and effect (except, in the case of Easements, where any failure to be in full force and effect would not materially interfere with or prevent operations as currently conducted on the Property or Properties related
thereto) and have not been modified or amended in any material respect. To the Sellers’ Knowledge, Sellers have complied with the material terms of the Office Lease and all Material Contracts. 
 5.6 Litigation and Claims. Except as set forth on Schedule 5.6, no suit, action, demand, proceeding, lawsuit or other litigation is pending
or, to Sellers’ Knowledge, threatened with respect to the Office Lease or any Properties or, to Sellers’ Knowledge, and other than as set forth on Schedule 5.22, CVGG or its assets. 
 5.7 Finder’s Fees. No Seller has incurred any liability, contingent or otherwise, for brokers’ or finders’ fees with respect to
this transaction for which Buyer shall have any responsibility whatsoever. 
 5.8 Sale Contracts. Except as set forth on Schedule
5.5 and for (a) contracts governing the sale of Hydrocarbons in the ordinary course which are terminable by Sellers without penalty on 60 or fewer days’ notice or (b) the disposition in the ordinary course of equipment no longer
suitable for oil and gas field operations, there are no contracts or options outstanding for the sale, exchange or transfer of the Properties or any portion thereof. 
 5.9 Notices. Except as set forth on Schedule 5.9, each Seller’s operation of the Properties is not the subject of any pending regulatory compliance or enforcement actions and no Seller has received
written notice of, any violation of laws, rules or regulations (federal, state and local), which have not heretofore been complied with, issued with respect to the Properties. 
  

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 5.10 Imbalances. Except as set forth on Schedule 5.10 as of the date or dates reflected
thereon, there are no gas or other Hydrocarbon production, pipeline, transportation or processing imbalances existing with respect to the Properties or, to Sellers’ Knowledge, CVGG’s assets. 
 5.11 Property Obligations. All rentals, royalties, shut-in royalties, overriding royalties and other payments due pursuant to or with respect to
Sellers’ interests in the Leases have been properly paid. 
 5.12 Property Operation. Except as set forth on Schedule
5.12, the Wells have been drilled, completed, operated, developed and produced in material compliance with all applicable judgments, orders, laws, rules and regulations (other than those relating to environmental or title matters, which are
dealt with in Article 11 and Article 12) and all necessary certificates, consents, permits, licenses and other governmental authorizations (other than those relating to environmental or title matters, which are dealt with in Article
11 and Article 12) which are material to Sellers’ ownership, use or operation of the Properties, have been obtained and are in force. 
 5.13 Take-or-Pay. To Sellers’ Knowledge, except as set forth on Exhibit A or B or Schedule 5.13, no Seller is obligated, under a take-or-pay or similar arrangement, or by virtue of an
election to non-consent or not participate in a past or current operation on the Properties pursuant to the applicable operating agreement, to produce Hydrocarbons, or allow Hydrocarbons to be produced, without receiving full payment at the time of
delivery in an amount that corresponds to the Net Revenue Interest in the Hydrocarbons attributable to any Well, unit, Lease or Fee Interest described in Exhibit B. 
 5.14 Taxes. All taxes that are due based on or measured by the ownership of any Property, the production or removal of Hydrocarbons therefrom, or
the receipt of proceeds therefrom, or the LLC Interests, have been properly paid or are being contested in good faith. 
 5.15 Timely
Receipt. To Sellers’ Knowledge, each Seller is timely receiving, in all material respects, its share of proceeds from the sale of Hydrocarbons produced from the Properties without suspense, counterclaim or set-off. To Sellers’
Knowledge, there has been no production of Hydrocarbons from the Properties in excess of the allowable production established pursuant to applicable state or federal law or regulation that would result in any material restriction on production from
the Leases subsequent to the Effective Time. 
 5.16 Timely Payment. Each Seller has paid its share of all costs payable by it under
the Leases operated by a Seller and the Material Contracts, except those being contested in good faith. 
 5.17 Outstanding
Obligations. Except as otherwise described in Schedule 5.17, to Sellers’ Knowledge, there are no outstanding authorizations for expenditures or other written commitments or proposals to conduct operations on the Properties or the
CVGG assets which exceed $500,000 net to any Property or the LLC Interests being sold under this Agreement. No third party has any right, retained, springing or otherwise, to production, cash bonus payments or profits or other rights in the
Properties, including, without limitation, rights retained by prior owners at the time of the sale of the Properties to Sellers to receive production, cash bonus payments or profits from the Properties if the price of oil exceeds a threshold amount.

  

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 5.18 Tax Partnerships. Except as otherwise disclosed in Schedule 5.18, to Sellers’
Knowledge, none of the Properties are subject to tax partnership reporting requirements under applicable provisions of the Internal Revenue Code of 1986, as amended (the “Code”). In the event any Property is the subject of
tax partnership reporting requirements, Sellers shall use their best efforts to effect a §754 election with respect any such tax partnerships and shall cooperate and timely provide to Buyer information needed to calculate and effect any
adjustments to the tax bases of such partnerships’ assets resulting therefrom. 
 5.19 Status of Sellers. Sellers are not a
“foreign person” within the meaning of Code Section 1445 and will furnish Buyer with an affidavit that satisfies the requirements of Code Section 1445(b)(2), in the form attached as Exhibit D. 
 5.20 Sufficient Rights to Operate. Other than as set forth on Schedule 5.22, the Properties and the Excluded Assets include all of the
material assets (real, personal (tangible and intangible) or other) employed by Sellers in their current ownership and operation of the Properties, and such assets are, taken as a whole, sufficient for the ownership and, if operated by Sellers, the
operation of such Properties immediately following the Closing in substantially the same manner as conducted at September 1, 2008, assuming receipt of all consents and approvals described in Schedule 5.3 and in clause (e) of the
definition of Permitted Encumbrances. To Sellers’ Knowledge, except for the LLC Interests and as disclosed in Schedule 5.18, the Properties do not include any interest in any partnership, limited liability company, corporation or other
entity formed under state law. 
 5.21 No Encumbrances. Other than the Permitted Encumbrances, as of the Closing there will be no
liens, mortgages, security interests or other encumbrances encumbering the Properties securing any Debt Instrument of any Seller or affiliate thereof. 
 5.22 CVGG. 
 5.22.1. CV Pipeline LLC owns, beneficially and of record, 25% of the
issued and outstanding membership interests of CVGG free and clear of any charge, claim, community property interest, equitable interest, lien (for taxes or any other indebtedness or matter), option, pledge, security interest, right of first
refusal, or restriction or other encumbrance of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of ownership, other than those contained in the operating agreement or other
organizational documents of CVGG. A Seller owns of record and beneficially 50% of the issued and outstanding membership interests in CV Pipeline LLC free and clear of any charge, claim, community property interest, equitable interest, lien (for
taxes or any other indebtedness or matter), option, pledge, security interest, right of first refusal, or restriction or other encumbrance of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other
attribute of ownership, other than those contained in the operating agreement or other organizational documents of CV Pipeline LLC, as amended. 
  

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 5.22.2. To Sellers’ Knowledge, CVGG has conducted no business or operations other
than gas gathering, processing and transportation activities in the Collbran Valley area of the Piceance Basin area of western Colorado. To Sellers’ Knowledge, CVGG has no assets other than lands and properties ancillary to such business and
operations. To Sellers’ Knowledge, CVGG does not own or hold, directly or indirectly, any equity or other ownership interest in any other legal entity. To Sellers’ Knowledge and to the extent not Known to Buyer, there has been no material
adverse development in the business or operations of CVGG since January 1, 2008. 
 5.22.3. To Sellers’ Knowledge,
there has been no amendment or other modification of the articles of organization and limited liability company agreement of CVGG since February 29, 2008. 
 5.22.4. To Sellers’ Knowledge CVGG has no employees, and has never had any employees. To Sellers’ Knowledge, CVGG has not ever
maintained, contributed to, sponsored or been a party to any employee benefit plan as defined in section 3(3) of ERISA. To Sellers’ Knowledge, neither CVGG nor any ERISA affiliate of CVGG has incurred any liability under Title IV of ERISA.

 5.22.5. To Sellers’ Knowledge, all amounts due and payable by CV Pipeline LLC to CVGG have been made. 
 5.23 YT Ranch. 
 5.23.1. A Seller owns, beneficially and of record, 100% of the issued and outstanding membership interests of YT Ranch free and clear of any charge, claim, community property interest, equitable interest, lien (for taxes or any other
indebtedness or matter), option, pledge, security interest, right of first refusal, or restriction or other encumbrance of any kind, including any restriction on use, voting, transfer, receipt of income, or exercise of any other attribute of
ownership, other than those contained in the operating agreement or other organizational documents of YT Ranch. 
 5.23.2.
Sellers have furnished Buyer a true and correct copy of the articles of organization and limited liability company agreement of YT Ranch as amended to the Closing Date. 
 5.23.3. To Sellers’ Knowledge, YT Ranch has conducted no business or operations other than ranching and the ownership of certain
surface and mineral rights set forth on Schedule 5.23. To Sellers’ Knowledge, YT Ranch has no assets other than lands and properties ancillary to such business and operations. To Sellers’ Knowledge, YT Ranch does not own or hold,
directly or indirectly, any equity or other ownership interest in any other legal entity. To Sellers’ Knowledge, there has been no material adverse development in the business or operations of YT Ranch since January 1, 2008. 
 5.24 Materials Provided to Buyer. To Sellers’ Knowledge, the historical production and financial data relating to the Properties that have
been provided by or on behalf of Sellers to Buyer and its affiliates are true and correct in all material respects. 
  

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 ARTICLE 6 
 REPRESENTATIONS AND WARRANTIES OF BUYER 
 Buyer represents and warrants to Seller that each of the
statements made in this Article 6 is true and correct as of the date of this Agreement and will be true and correct as of the Closing Date. 
 6.1 Organization. Buyer is a corporation or entity validly existing and in good standing under the laws of the State of its incorporation or organization. Buyer is in good standing and duly qualified to do business in each other
jurisdiction in which the conduct of its business or ownership or leasing of its properties makes such qualification or registration necessary, and, as of Closing, will be qualified to do business and be in good standing under the laws of the
applicable jurisdiction if so required in order to hold the Properties, and to operate the Properties previously operated by one of the Sellers. 
 6.2 Authority. Buyer has full power to enter into and perform its obligations under this Agreement and has taken all proper corporate or other entity action to authorize entering into this Agreement and performing its obligations
hereunder. 
 6.3 No Conflicts. Neither the execution and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, nor the compliance with the terms hereof will result in any default under any material agreement or instrument to which Buyer is a party (including its governing documents), or violate any order, writ, injunction, decree,
statute, rule or regulation applicable to Buyer or any of its properties. 
 6.4 Enforceability. This Agreement has been duly executed
and delivered on behalf of Buyer and constitutes the legal, valid and binding obligation of Buyer, enforceable in accordance with its terms, except as limited by bankruptcy or other similar laws applicable generally to creditor’s rights and as
limited by general equitable principles. 
 6.5 Basis of Buyer’s Decision; Property Review. Buyer has such knowledge and
experience in financial and business matters that it is capable of evaluating the merits and risks of its investment in the Properties contemplated hereby, and is able to bear the economic risk of such investment indefinitely. 
 6.6 Buyer’s Experience and Counsel. Buyer is an experienced and knowledgeable investor and operator in the oil and gas business. Prior to
entering into this Agreement, Buyer was advised by and has relied solely on its own expertise and legal, tax, engineering, and other professional counsel concerning this Agreement, the Properties and the value thereof. 
 6.7 Closing Funds. Buyer has and will have at the Closing sufficient funds to enable the payment to Sellers by wire transfer of the Purchase Price
in accordance with Article 14 and otherwise to perform Buyer’s obligations under this Agreement. 
 6.8 No Further
Distribution. Buyer is not acquiring the Properties in contemplation of a distribution thereof in violation of the Securities Act of 1933, 15 U.S.C. § 77a et seq., and 

  

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any other rules, regulations, and laws pertaining to the distribution of securities. Buyer has not sought nor solicited, nor has Buyer participated with,
investors, partners or other third parties in order to fund the Purchase Price and to close this transaction, and all funds used by Buyer in connection with this transaction are Buyer’s own funds. 
 6.9 Buyer’s Ability to Take Title. Buyer is unaware of any fact or circumstance which would preclude or inhibit unconditional approval of
Sellers’ assignment of the Properties to Buyer by any governmental agency, including meeting existing or increased bonding requirements. 
 6.10 Buyer’s Ability to Operate. Buyer is unaware of any fact or circumstance which would preclude or inhibit such Buyer’s qualification to operate any of the Properties previously operated by any of the Sellers, including
meeting existing or bonding or other security requirements of any lessor or governmental agency. 
 6.11 Finder’s Fees. Buyer has
not incurred any liability, contingent or otherwise, for brokers’ or finders’ fees in respect to this transaction for which any Seller shall have any responsibility whatsoever. 
 ARTICLE 7 
 COVENANTS OF SELLERS 
 7.1 Conduct of Business Pending Closing. From the date hereof to the Closing Date, except as provided herein, or as required by any obligation,
agreement, Lease, contract or instrument referred to on any Exhibit or Schedule or as otherwise consented to in writing by Buyer, each Seller will: 
 7.1.1. not (a) act in any manner with respect to the Properties other than in the normal, usual and customary manner, consistent with prior practice; (b) dispose of, encumber or relinquish any of the
Properties (other than relinquishment resulting from the expiration of all or a part of a non-producing Lease still in its primary term or the abandonment of a Lease not operated by a Seller); (c) waive, compromise or settle any material right
or claim with respect to any of the Properties that is not an Excluded Asset; or (d) except with respect to those matters identified in Schedule 5.17, make, or enter into any agreement to make, capital or workover expenditures with
respect to the Properties in excess of $500,000, except when required by an emergency when there shall have been insufficient time to obtain advance consent (provided, that Seller will promptly notify Buyer of any such emergency expenditures);

 7.1.2. use commercially reasonable efforts to preserve relationships with all third parties having business dealings with
respect to the Properties; 
 7.1.3. cooperate with Buyer in the notification of all applicable governmental regulatory
authorities of the transactions contemplated hereby and cooperate with Buyer in obtaining the issuance by each such authority of such permits, licenses and authorizations as may be necessary for Buyer to own the Properties and to operate any
Properties currently operated by any Seller (or an affiliate of a Seller) following the Closing; 
  

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 7.1.4. use commercially reasonable efforts to seek appointment of Buyer as the successor
operator to the relevant Seller (or its affiliate) with respect to all Properties currently operated by a Seller (or an affiliate of Seller); 
 7.1.5. until Closing maintain all insurance with respect to the Properties currently in force and maintained by Sellers with the same coverages and limits as are in effect at the date hereof; 
 7.1.6. use commercially reasonable efforts to obtain the consents or waivers listed on Schedule 5.3; 
 7.1.7. perform and comply in all material respects with all covenants and conditions to be performed by Sellers contained in agreements
relating to the Properties; 
 7.1.8. pay all taxes and assessments due by Sellers or CV Pipeline LLC with respect to the
Properties that become due and payable prior to the Closing Date; and 
 7.1.9. comply in all material respects with all laws
and regulations (i) that are applicable to Sellers’ ownership of the Properties and (ii) as to those Properties operated by a Seller, that are applicable to the operation of such Properties. 
 7.2 Access. Each Seller shall afford to Buyer and its authorized representatives reasonable access, at Buyer’s sole risk and expense, from
the date hereof until the Closing Date during normal business hours, to (a) the Properties operated by a Seller or an affiliate of Seller (provided, however, that Buyer shall indemnify and hold harmless Seller Group from and against any and all
Claims arising from Buyer’s inspection of the Properties (including Claims for personal injuries, property damage and reasonable attorneys’ and experts’ fees, AND SPECIFICALLY TO THE EXTENT OF CLAIMS ARISING OUT OF OR PARTIALLY OR
FULLY CAUSED BY THE NEGLIGENCE OF SELLER GROUP)), (b) such Seller’s operating, accounting, contract, corporate and legal files, records, materials, data and information regarding the Properties or those interests previously conveyed by
Seller to Buyer pursuant to the December 2007 PSA (“Data”); provided, however, that Data shall not include (x) any legal materials the disclosure of which such Seller determines would jeopardize the assertion of a
privilege in ongoing or anticipated litigation with third parties or (y) information, the disclosure of which would violate any confidentiality agreement to which such Seller is bound, (c) Seller’s records with respect to CVGG and
(d) to the extent reasonably possible, the properties of CVGG. 
 7.3 H-S-R Act. Sellers shall file or cause to be filed with the
Federal Trade Commission and the United States Department of Justice any notifications required to be filed under the H-S-R Act and the rules and regulations promulgated thereunder with respect to the transactions contemplated hereby. Sellers shall
consult with Buyer as to the appropriate time of filing such notifications and shall use their best efforts to make such filings at the agreed upon time, to respond promptly to any requests for additional information made by either of such agencies,
and to cause the waiting periods under the H-S-R Act to terminate or expire at the earliest possible date after the date of filing. 
  

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 7.4 Satisfaction of Conditions. Sellers will use commercially reasonable efforts to take all
actions and to do all things necessary to consummate, make effective and comply with all of the terms of this Agreement (including satisfaction, but not waiver, of the Closing conditions for which they are responsible or otherwise in control).

 7.5 Consents and Approvals. Sellers agree to use commercially reasonable efforts to either attempt to obtain all consents and
approvals set forth on Schedule 5.3 or to ensure that such consents and approvals have expired without being exercised and have therefore been waived, except for those consents and approvals from governmental entities customarily obtained
post-closing for transactions similar to those contemplated hereby. Sellers’ failure to obtain such consents or waivers shall be considered a Title Defect under Article 11. 
 7.6 Transition Services. PXP and Buyer agree to execute and deliver a Transition Services Agreement substantially similar to the form attached
hereto as Exhibit E for a term not to exceed 60 days following the Closing Date to assure a smooth and orderly transition of operation of those Properties currently operated by Seller, pursuant to which PXP will provide mutually agreed
services to Buyer, and Buyer will reimburse PXP for its costs and expenses in connection therewith. 
 ARTICLE 8 
 COVENANTS OF BUYER 
 8.1 H-S-R
Act. Buyer shall file or cause to be filed with the Federal Trade Commission and the United States Department of Justice any notifications required to be filed under the H-S-R Act and the rules and regulations promulgated thereunder with respect
to the transactions contemplated hereby. Buyer shall consult with Sellers as to the appropriate time of filing such notifications and shall use its best efforts to make such filings at the agreed upon time, to respond promptly to any requests for
additional information made by either of such agencies, and to cause the waiting periods under the H-S-R Act to terminate or expire at the earliest possible date after the date of filing. 
 8.2 Satisfaction of Conditions. Buyer will use commercially reasonable efforts to take all actions and to do all things necessary to consummate,
make effective and comply with all of the terms of this Agreement (including satisfaction, but not waiver, of the Closing conditions for which it is responsible or otherwise in control). 
 8.3 FERC Liability. Buyer will continue efforts to cause CVGG to obtain a limited jurisdiction certificate or other authorization or waiver from
FERC to permit CVGG to transport natural gas from the processing facility located at Anderson Gulch and owned by CVGG through the Collbran Valley Gas Segment. Such efforts by Buyer shall be consistent with efforts of Buyer and Seller prior to
Closing. 
  

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 ARTICLE 9 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF SELLERS 
 The obligations of Sellers to be performed at
the Closing are subject to the fulfillment (or waiver by Sellers in their sole discretion), before or at the Closing, of each of the following conditions: 
 9.1 Representations and Warranties. The representations and warranties by Buyer set forth in Article 6 shall be true and correct in all material respects at and as of the Closing as though made at and as
of the Closing. 
 9.2 Covenants. Buyer shall have performed and complied with in all material respects all covenants and agreements
required to be performed and satisfied by it at or prior to Closing. 
 9.3 No Litigation. There shall be no suits, actions or other
proceedings pending or threatened to restrain or prohibit the consummation of the transactions contemplated by this Agreement. 
 9.4
H-S-R Act. The waiting period under the H-S-R Act applicable to the consummation of the sale of the Properties contemplated hereby shall have expired or been terminated. 
 ARTICLE 10 
 CONDITIONS PRECEDENT TO THE OBLIGATIONS OF BUYER 

The obligations of Buyer to be performed at the Closing are subject to the fulfillment (or waiver by Buyer in its sole discretion), before or at the
Closing, of each of the following conditions: 
 10.1 Representations and Warranties. The representations and warranties of Sellers set
forth in Article 5 shall be true and correct (without reference to any materiality or knowledge qualifiers therein) at and as of the Closing as though made at and as of the Closing, except to the extent that any breaches or inaccuracies of
such representations and warranties (i) individually or in the aggregate would not have a Material Adverse Effect or (ii) as to those Properties that are operated by Buyer, are Known to Buyer as of the date hereof; provided, however, that
in no event shall the existence of a Title Defect or an Adverse Environmental Condition cause a representation or warranty to be untrue or incorrect, except for a Title Defect arising from a consent to assignment or a preferential purchase right
that was not disclosed by Sellers on Schedule 5.3 and of which the individuals identified on Schedule 11.1 did not otherwise have knowledge prior to the Defect Notification Deadline. 
 10.2 Covenants. Sellers shall have performed and complied with in all material respects all covenants and agreements required to be performed and
satisfied by them at or prior to Closing. 
  

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 10.3 No Litigation. There shall be no suits, actions or other proceedings pending or threatened to
restrain or prohibit the consummation of the transactions contemplated by this Agreement. 
 10.4 H-S-R Act. The waiting period under
the H-S-R Act applicable to the consummation of the sale of the Properties contemplated hereby shall have expired or been terminated. 
 10.5
Release of Liens. All mortgages, deeds of trust and other liens of record burdening the Properties securing Debt Instruments of Sellers or any of their affiliates shall be released at or before Closing, and evidence of such release shall have
been provided to Buyer prior to or at Closing. 
 10.6 Consents and Approvals. All consents and approvals (except for consents and
approvals of governmental authorities customarily obtained subsequent to transfer of title) required for the conveyance by Sellers of any Property with an Allocated Value of $100,000 or more shall have been obtained, provided that this condition
shall be automatically waived if the aggregate Allocated Value of all Properties with an Allocated Value of $100,000 or more as to which such consents and approvals are not obtained does not exceed 25% of the Purchase Price. 
 ARTICLE 11 
 TITLE MATTERS

 11.1 Title Defect Notice. Buyer shall in good faith provide Sellers with written notice (a “Title Defect
Notice”) at or before the Defect Notification Deadline of any fact that renders Sellers’ title to any Property less than Good and Defensible Title (“Title Defect”); provided, however, Buyer agrees to use its
good faith effort to notify Sellers of Title Defects as promptly as possible after Buyer has discovered and made the decision to assert the same. Each Title Defect Notice shall include, in reasonable detail, a description of (a) the Well, unit,
Lease, Fee Interest, Easement or other Property with respect to which the claimed Title Defect(s) relate, (b) the nature of such claimed Title Defect(s) and (c) Buyer’s calculation of the value of each claimed Title Defect(s) as to
the Property subject to such Title Defect, in accordance with the guidelines set forth in Section 11.3. Any Title Defect that is not identified in a timely delivered Title Defect Notice shall thereafter be forever waived and expressly
assumed by Buyer and shall be deemed to have become a Permitted Encumbrance, except for Title Defects with respect to consents to assignment or preferential purchase rights that were not disclosed by Sellers on Schedule 5.3 and of which the
individuals identified on Schedule 11.1 did not otherwise have knowledge prior to the Defect Notification Deadline. 
 11.2
Determination of Title Defects and Defect Values. 
 11.2.1. Within ten days after Sellers’ receipt of a Title
Defect Notice, Sellers shall notify Buyer as to whether Sellers agree with the Title Defects claimed therein and/or the values proposed for such Title Defects therein, as to the Properties subject to such Title Defects. If Sellers do not agree with
any such claimed Title Defect and/or any such proposed value, then the Parties shall promptly enter into good faith negotiations and shall attempt to agree on such matters. The value agreed by the Parties with respect to a Title Defect shall be used
to determine the Defect Value for such Title Defect. 
  

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 11.2.2. If the Parties cannot reach agreement concerning either the existence of a Title
Defect or a value therefor with respect to any Property subject thereto prior to Closing, then, upon any Party’s written request, the Parties shall submit such dispute to a mutually acceptable attorney or other consultant experienced in title
examination in the state in which such Property is located for prompt resolution; provided, however, that if at any time any consultant so chosen fails or refuses to perform hereunder, a new consultant shall be chosen by the Parties. The cost of any
such consultant shall be borne 50% by Sellers and 50% by Buyer. For any such dispute resolution process, Sellers and Buyer shall present a written statement of their respective positions on the dispute to the consultant within three Business Days
after the consultant is selected, and the consultant shall make a determination of all points of disagreement in accordance with the terms and conditions of this Agreement within ten Business Days of receipt of such statements. The determination by
the consultant shall be conclusive and binding on the Parties and shall be enforceable against any Party in any court of competent jurisdiction, and the value of any Title Defect as to the Property subject thereto as determined by the consultant
shall be used in the determination of the Defect Value for such Title Defect. If necessary to complete such determination, the Closing Date shall be deferred until the consultant has made a determination of the disputed issues with respect thereto
and all subsequent dates and required activities having reference to the Closing Date shall be correspondingly deferred; provided, however, that, unless the Parties mutually agree in writing to the contrary, the Closing Date shall not be deferred
under this Section 11.2.2 in any event for more than ten Business Days, in which case the affected Property shall be removed from this Agreement until the disputed issues are resolved. In such a case, the Purchase Price shall be reduced
by the Allocated Value of such Property. If and when the disputed issues are resolved (unless Sellers shall have previously exercised their rights under Section 11.4 to effect a Title Defect Removal with respect to such Property),
Sellers shall convey the affected Property to Buyer and Buyer shall pay to Seller the Allocated Value minus the Defect Value so resolved for such Property, subject to adjustment to take account of the matters used to adjust the Purchase Price as set
forth in Article 4. From the Closing through the date of conveyance, Sellers shall continue to conduct their operations with respect to such Property pursuant to the provisions of Article 7 and any other applicable provisions of this
Agreement. 
 11.2.3. With regard to (i) any Property as to which there exists a preferential right to purchase which has
not been waived by the Closing Date or as to which the exercise period has not expired as of the Closing Date or (ii) any Property as to which a consent or approval is required for the conveyance by Sellers, and which consent or approval has
not been obtained or waived (including by the passage of time) by the Closing Date, the closing as to that Property shall be deferred until no later than the Outside Date in order to allow Sellers further time to obtain such consents and approvals
or waivers of preferential purchase rights (including, in all instances, by the passage of time), in which case the affected Property shall be removed from this Agreement until the applicable preferential purchase right is waived, or the required
consent or approval is obtained (including, in all instances, by the passage of time). In such a case, the Purchase Price shall be reduced by 

  

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the Allocated Value of such Property. If and when the preferential purchase rights are waived or consents and approvals obtained (subject to the automatic
removal of such Properties under Section 11.4), Sellers shall convey the affected Property to Buyer and Buyer shall pay to Sellers the Allocated Value for such Property, subject to adjustment to take account of the matters used to adjust
the Purchase Price as set forth in Article 4. From the Closing through the date of conveyance of each such affected Property, Sellers shall continue to conduct their operations with respect to such Property pursuant to the provisions of
Article 7 and any other applicable provisions of this Agreement. 
 11.2.4. Sellers shall have the right, but not the
obligation, to cure any fact agreed or determined to be a Title Defect. 
 11.3 Calculation of Defect Value. 
 11.3.1. If, because of the Title Defect, title to a particular Property or Well fails completely with the effect that Sellers have no
ownership interest in the relevant Property, the Defect Value shall be the Allocated Value of that Property assigned specifically to it on Exhibit B. 
 11.3.2. If a Title Defect exists because Sellers owns less than the Net Revenue Interest in a Property set forth on Exhibit B, and
such Property has an Allocated Value assigned specifically to it on Exhibit B, then the Defect Value shall be equal to the Allocated Value for such Property multiplied by a fraction (i) the numerator of which shall be the net present
value, as of the Effective Time, of Sellers’ interest in the future net revenues from such Property (the “PV-NRI”) minus the net present value as of the Effective Time, of Sellers’ interest in the future net
revenues from such Property calculated based upon the same production, cost, and assumed future price estimates and discount rate and such other methods, techniques and assumptions utilized but taking into account the Title Defect, and (ii) the
denominator of which shall be the PV-NRI. 
 11.3.3. If a Title Defect is a lien, encumbrance or other charge upon a Property
which is liquidated in amount, but such Title Defect is not a Minimal Defect, then Sellers shall either (a) instruct Buyer to pay at Closing the sum necessary to be paid to the obligee to remove the Title Defect from such Property (the
aggregate of all such amounts, the “Liquidated Title Defect Payment”) or (b) retain the obligation of such Title Defect and elect to challenge the validity thereof (or of any portion thereof), in which case Buyer shall
extend reasonable cooperation to Sellers in such efforts at no risk or expense to Buyer; provided, however, that if such Title Defect is not cured by three days prior to Closing, it shall constitute an Uncured Title Defect. 
 11.3.4 If a Title Defect represents an obligation or burden upon a Property for which the economic detriment to Buyer is not liquidated
but can be estimated with reasonable certainty, the Defect Value with respect to such Title Defect shall be the sum the Parties mutually agree upon in good faith as the present value of the adverse economic effect such Title Defect will have on such
Property. If the Parties cannot reach an agreement as to such Defect Value, then such dispute shall be resolved in the manner set forth in Section 11.2. 
  

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 11.3.5 If less than 100% of the assets comprising a Property set forth on Exhibit
B is subject to a Title Defect, the Parties agree that only the value of the affected assets will be used to consider the Defect Value; accordingly, the Parties agree that the value of the affected asset with respect to which a Defect Value must
be calculated will be the based on an amount equal to the product of (a) the Allocated Value of the Property and (b) a fraction, the numerator of which is the average weighted production of the affected asset only and the denominator of
which is the aggregate average weighted production of all the assets comprising the affected Property. The parties agree that the phrase “average weighted production” as used herein shall be based on the historical production information
from Sellers’ records for June, July and August of 2008. In the event that the value of the affected asset cannot be fairly calculated using the formula set forth in this Section 11.3.5 because there is insufficient production from
the affected asset in comparison to its Allocated Value, then the Parties shall, acting reasonably, mutually agree upon the Defect Value attributable to the affected Property. 
 11.3.6 Notwithstanding the foregoing provisions of this Section 11.3, if the Title Defect is with respect to an Easement,
there shall also be deemed to be a Title Defect of the Property serviced by such Easement, unless an appropriate replacement easement is obtained by Sellers therefor; provided, however, no such Title Defect shall be deemed to exist if the affected
Easement remains adequate for the current operation of the associated Property or is not required for such operations. 
 11.3.7 The Defect Value shall take into consideration all of the applicable guidelines as are set forth in Sections 11.3.1, 11.3.2, 11.3.3, 11.3.4, 11.3.5 and 11.3.6 above. 
 11.4 Exclusion of Properties Subject to Title Defects. With respect to any Property subject to a Title Defect (other than preferential purchase
rights or a required consent or approval which shall be subject to Section 11.2.3 and the last sentence of this Section 11.4), Sellers shall have the option (which must be exercised by written notice to Buyer at least three
days prior to Closing) to remove such Property from this Agreement, in which case the Purchase Price shall be reduced by the Allocated Value of such Property. From and after the Closing Date, with respect to any Property that is the subject of a
Title Defect or Defect Value dispute and not conveyed at the Closing Date, Sellers shall retain the Property removal option described above, provided that such option may be exercised by written notice to Buyer at any time prior to resolution of
such dispute. Notwithstanding any provision of this Agreement to the contrary, if a third party exercises an applicable preferential right of purchase with respect to any Property or a required consent to assign a Property is not obtained or waived
by the Outside Date, the Purchase Price shall be reduced by the Allocated Value of such Property or, if the consent right or preferential right affects less than 100% of such Property, a pro rata portion thereof calculated in accordance with
Section 11.3.2, and such Property (or portion thereof) shall be removed from this Agreement. The removal of a Property or portion thereof under this Section 11.4 is referred to as a “Title Defect
Removal”. 
 11.5 Purchase Price Adjustment for Title Benefits. If it is agreed or determined that Sellers’ interest
in a Property is greater than the Net Revenue Interest set forth in Exhibit B as to such Property, and the aggregate value of such additional Net Revenue Interests exceeds an 

  

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amount (calculated on the same basis as Defect Values) equal to two and three-quarter percent (2.75%) of the Purchase Price (a “Title
Benefit”), the aggregate amount of such excess will be taken as an upward adjustment to the Purchase Price. 
 11.6 LLC
Interests Title Defects. Buyer shall notify Sellers of, and Buyer and Sellers shall resolve, any instance in which the title to the LLC Interests being conveyed to Buyer is less than Good and Defensible Title in substantially the manner set
forth in this Article 11 with respect to Title Defects. 
 ARTICLE 12 
 ENVIRONMENTAL MATTERS 
 12.1 Presence of Wastes, NORM, Hazardous Substances
and Asbestos. BUYER ACKNOWLEDGES THAT THE PROPERTIES HAVE BEEN USED TO EXPLORE FOR, DEVELOP AND PRODUCE HYDROCARBONS, AND THAT SPILLS OF WASTES, CRUDE OIL, PRODUCED WATER, HAZARDOUS SUBSTANCES AND OTHER MATERIALS MAY HAVE OCCURRED THEREON.
ADDITIONALLY, THE PROPERTIES, INCLUDING PRODUCTION EQUIPMENT, MAY CONTAIN ASBESTOS, HAZARDOUS SUBSTANCES OR NORM. NORM MAY AFFIX OR ATTACH ITSELF TO THE INSIDE OF WELLS, MATERIALS AND EQUIPMENT AS SCALE OR IN OTHER FORMS, AND NORM-CONTAINING
MATERIAL MAY HAVE BEEN BURIED OR OTHERWISE DISPOSED OF ON THE PROPERTIES. A HEALTH HAZARD MAY EXIST IN CONNECTION WITH THE PROPERTIES BY REASON THEREOF. SPECIAL PROCEDURES MAY BE REQUIRED FOR REMEDIATION, REMOVING, TRANSPORTING AND DISPOSING
OF ASBESTOS, NORM, HAZARDOUS SUBSTANCES AND OTHER MATERIALS FROM THE PROPERTY. With respect to that portion of the Properties actually acquired by Buyer at Closing hereunder, Buyer assumes all liability for the assessment, remediation, removal,
transportation and disposal of these materials and associated activities in accordance with the applicable rules, regulations and requirements of governmental agencies, unless otherwise provided in this Article 12. The foregoing shall not
abrogate or limit Sellers’ indemnity and hold harmless obligations under Section 16.1. 
 12.2 Environmental
Assessment. Buyer shall have the opportunity to conduct at their sole risk and expense an environmental assessment of the Properties; provided, however, that Buyer shall not conduct any Phase II audits without Sellers’ prior written
consent. Sellers will provide reasonable access for this purpose to Properties operated by Sellers; for any Property not operated by Sellers, Sellers will reasonably cooperate with Buyer in contacting the operators of any such non-operated Property
directly to attempt to arrange for access for the purposes of environmental assessment. While performing any environmental assessment, Buyer or any of its representatives and agents must comply with Sellers’ environmental and safety rules and
policies on Seller-operated Properties, and with the operator’s environmental and safety rules and policies on all other Properties. Prior to Closing, Buyer will not disclose any information obtained in its environmental assessment to third
parties unless agreed to in writing by Sellers or unless such disclosure is expressly required by applicable law or regulation or is required pursuant to legal process of any court or governmental authority. Buyer will notify Sellers in advance of
any such disclosure and will furnish Sellers copies of all materials to be disclosed prior to any disclosure thereof. As soon as possible after Buyer’s receipt thereof, Buyer shall 
  

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forward to Sellers copies of all reports, data, analyses, test results, remediation costs estimates and recommended remediation procedures or other
information concerning or derived from Buyer’s environmental assessment. 
 12.3 Notice of Adverse Environmental Conditions.
Buyer shall in good faith provide Sellers with written notice (an “Adverse Environmental Condition Notice”) at or before the Defect Notification Deadline of any claimed Adverse Environmental Condition; provided, however,
Buyer agrees to use its good faith efforts to notify Sellers of Adverse Environmental Conditions as promptly as possible after Buyer has discovered and made the decision to assert the same. Each Adverse Environmental Condition Notice shall include,
in reasonable detail, a description of (a) the Well, unit, Lease, Easement or Fee Interest with respect to which such Adverse Environmental Condition(s) is claimed, (b) the nature of such claimed Adverse Environmental Condition(s) and
(c) Buyer’s proposed calculation of the cost to remediate such claimed Adverse Environmental Condition(s) allocable to the Property subject to such Adverse Environmental Condition (the “Remediation Value”). Any
Adverse Environmental Condition that is not identified in a timely delivered Environmental Defects Notice shall thereafter be forever waived and expressly assumed by Buyer. 
 12.4 Determination of Adverse Environmental Conditions and Remediation Values. 
 12.4.1. Within ten days after Sellers’ receipt of an Adverse Environmental Condition Notice, Sellers shall notify Buyer as to whether
Sellers agree with the Adverse Environmental Condition claimed therein and/or the Remediation Value proposed to be required for remediation of such Adverse Environmental Condition. If Sellers do not agree with any such claimed Adverse Environmental
Condition and/or any such proposed Remediation Value, then the Parties shall promptly enter into good faith negotiations and shall attempt to agree on such matters. The value agreed by the Parties with respect to an Adverse Environmental Condition
shall be the Remediation Value for such Adverse Environmental Condition. 
 12.4.2. If the Parties cannot reach agreement
concerning either the existence of an Adverse Environmental Condition or a Remediation Value therefor with respect to any Property prior to Closing, then, upon any Party’s written request, the Parties shall submit such dispute to a mutually
acceptable environmental consultant or other consultant experienced in oil and gas producing property environmental remediation in the state in which such Property is located for prompt resolution; provided, however, that if at any time any
consultant so chosen fails or refuses to perform hereunder, a new consultant shall be chosen by the Parties. The cost of any such consultant shall be borne 50% by Sellers and 50% by Buyer. For any such dispute resolution process, Sellers and Buyer
shall present a written statement of their respective positions on the dispute to the consultant within three Business Days after the consultant is selected, and the consultant shall make a determination of all points of disagreement in accordance
with the terms and conditions of this Agreement within ten Business Days of receipt of such statements. The determination by the consultant shall be conclusive and binding on the Parties and shall be enforceable against any Party in any court of
competent jurisdiction, and the value determined by the consultant with respect to an Adverse Environmental Condition shall be the Remediation 

  

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Value for such Adverse Environmental Condition. If necessary to complete such determination, the Closing Date shall be deferred until the consultant has made
a determination of the disputed issues with respect thereto and all subsequent dates and required activities having reference to the Closing Date shall be correspondingly deferred; provided, however, that, unless the Parties mutually agree to the
contrary, the Closing Date shall not be deferred under this Section 12.4.2 in any event for more than ten Business Days. If at the end of such period, the consultant has failed to make its determination, Sellers must effect an Adverse
Environmental Condition Removal pursuant to Section 12.5, and subject to each Party’s waiver of any right under Section 18.1.6, if applicable, the Parties shall proceed with Closing, in which case the affected Property
shall be removed from this Agreement until the disputed issues are resolved. In such a case, the Purchase Price shall be reduced by the Allocated Value of such Property. If and when the disputed issues are resolved (unless Sellers or Buyer shall
have previously exercised their respective rights under Section 12.5 to effect an Adverse Environmental Condition Removal with respect to such Property), Sellers shall convey the affected Property to Buyer and Buyer shall pay to Seller
the Allocated Value (subject to adjustment to take account of the matters used to adjust the Purchase Price as set forth in Article 4) minus the Remediation Value so resolved for such Property. From the Closing Date through the date of conveyance,
Sellers shall continue to conduct their operations of such Property pursuant to the provisions of Article 7 and any other applicable provisions of this Agreement. 
 12.4.3. Sellers shall have the right, but not the obligation, to remediate any Adverse Environmental Condition at Sellers’ sole cost
in accordance with applicable Environmental Laws. If Sellers elect to remediate an Adverse Environmental Condition, and such remediation cannot be accomplished prior to the Closing Date, Sellers may notify Buyer of Sellers’ intention to
diligently pursue and complete such remediation and to exercise all reasonable efforts and diligence to complete remediation within 90 days of the Closing Date. In such event, the affected Property shall be withheld from the Closing on the Closing
Date and the Allocated Value associated therewith shall be withheld from the Preliminary Purchase Price otherwise payable by Buyer. On the date the final settlement of the Purchase Price adjustments is completed pursuant to Section 15.3,
Buyer will accept, pay for in accordance with this Agreement and receive an assignment of any such Properties as to which Sellers have remediated to Buyer’s reasonable satisfaction any Adverse Environmental Condition asserted prior to Closing.
As to any such Properties still then subject to Adverse Environmental Conditions, Buyer, at its option may (a) offer Sellers an extension of the remediation period on such terms and conditions as Buyer may, in its sole discretion, elect to
impose and Sellers may accept or reject such extension; (b) waive the unremediated Adverse Environmental Condition(s) and accept, pay for in accordance with this Agreement and receive an assignment of the affected Properties subject to such
unremediated Adverse Environmental Condition(s); or (c) eliminate the affected Properties from the purchase and sale transaction and retain the previously withheld portion of the Preliminary Purchase Price related to such Properties, or portion
thereof, free and clear of any claim by Sellers, and thereupon any and all rights of Buyer in or to such Properties shall terminate. During the post-Closing remediation period specified above (as the same may be extended) and through the date the
affected Properties are purchased and sold hereunder, with respect to any such Properties subject to Adverse Environmental Conditions that Sellers are attempting to cure, a Seller shall remain the 

  

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record owner thereof and shall continue to conduct its operations thereof or with respect thereto pursuant to the provisions of Article 7 and any
other applicable provisions of this Agreement. 
 12.5 Exclusion of Properties Subject to Adverse Environmental Conditions. With
respect to any Property subject to an Adverse Environmental Condition, Sellers and Buyer shall each have the option (which must be exercised by written notice to Buyer or Sellers, as the case may be, at least three days prior to Closing) to remove
such Property from this Agreement, in which case the Purchase Price shall be reduced by the Allocated Value of such Property. From and after the Closing Date, with respect to any Property that is the subject of a dispute regarding an asserted
Adverse Environmental Condition, or the Remediation Value related thereto, and which is not conveyed at the Closing Date, Sellers and Buyer shall each retain the Property removal option described above, provided that such option may be exercised by
written notice to Buyer or Sellers, as the case may be, at any time prior to resolution of such dispute. The removal of a Property or portion thereof under this Section 12.5 is referred to as an “Adverse Environmental
Condition Removal”. 
 12.6 Latigo Arbitration. Reference is made to that certain arbitration proceeding entitled Latigo
Arbitration on Schedule 5.6 referred to in this Agreement as the “Latigo Arbitration.” Notwithstanding anything contained in this Agreement to the contrary, none of the environmental matters in controversy under the
Latigo Arbitration shall constitute an Adverse Environmental Condition; provided, however, that Sellers shall disburse to Buyer at Closing any proceeds received by Seller in the Latigo Arbitration attributable to matters that would otherwise have
constituted Adverse Environmental Conditions under this Agreement and which have not been remediated. 
 12.7 LLC Interests Adverse
Environmental Conditions. Buyer shall notify Sellers of, and Buyer and Sellers shall resolve, any Adverse Environmental Condition (substituting “assets of CVGG or YT Ranch” for “Properties” in the definition thereof), with
respect to the assets attributable to the LLC Interests in substantially the manner set forth in this Article 12 with respect to Adverse Environmental Conditions. 
 ARTICLE 13 
 SUSPENSE FUNDS HELD BY SELLERS 
 13.1 Suspended Funds. Within 90 days after the Closing, Sellers shall provide to Buyer a listing showing all funds from production attributable to
the Properties that are currently held in suspense by the Sellers and shall transfer to Buyer all such suspended funds existing as of the Effective Time (with the balance of such proceeds to be paid over or otherwise accounted for pursuant to the
Final Settlement Statement contemplated by Section 15.1). After such transfer, Buyer shall be responsible for proper distribution of all such suspended funds to the parties lawfully entitled to them, and hereby agrees to indemnify,
defend, and hold harmless Sellers from and against any and all Losses arising out of or relating to Buyer’s retention or distribution of such suspended funds to the extent of the funds so transferred. 
  

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 ARTICLE 14 
 CLOSING 
 14.1 The Closing. Subject to the closing conditions and other provisions set forth
in this Agreement, the closing of the purchase and sale of the Properties pursuant to this Agreement (“Closing”) shall be held in Houston, Texas at the Sellers’ offices at 700 Milam, Suite 3100, Houston,
Texas 77002 on December 1, 2008, or as promptly thereafter as is reasonably practicable following the satisfaction of all closing conditions set forth in this Agreement (the “Closing Date”). 
 14.2 Closing Statement. Sellers shall provide Buyer with a closing statement reflecting its good faith estimation of the Purchase Price, as
adjusted pursuant to Article 4 (the “Preliminary Purchase Price”) at least two days prior to the Closing. 
 14.3 Closing Deliveries. At Closing the following events shall occur, each event under the control of one Party hereto being a condition precedent to the events under the control of the other Party, and each
event being deemed to have occurred simultaneously with the other events: 
 14.3.1. Sellers shall execute and deliver to
Buyer, and Buyer shall execute and receive, one or more instruments of assignment, in substantially the form of the Assignment, Bill of Sale and Conveyance set forth as Exhibit C (the “Assignment”);

 14.3.2. Buyer shall deliver via wire transfer to an account specified by Sellers, in immediately available funds, the
Preliminary Purchase Price, less the Liquidated Title Defect Payment, if applicable; 
 14.3.3. Buyer shall deliver via wire
transfer to account(s) specified by the applicable payee(s) the Liquidated Title Defect Payment; 
 14.3.4. Each Party shall
execute, acknowledge and deliver mutually acceptable letters-in-lieu of transfer orders or division orders directing all purchasers of production from the Properties to make payment of proceeds attributable to such production occurring on or after
the Effective Time to Buyer; 
 14.3.5. As to those Properties operated by a Seller or an affiliate, such Seller (or
affiliate) and Buyer shall execute all appropriate state or local forms required to be executed to effect an assignment of operations and the administrative change of operator of such Properties from such Seller or affiliate to Buyer; 
 14.3.6. Each Seller as applicable, shall execute and deliver to Buyer any applicable governmental transfer form required by the
governmental agency with jurisdiction over the Wells; 
 14.3.7. The relevant Parties each shall execute and deliver the LLC
Assignment with respect to the LLC Interests; 
  

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 14.3.8. The Parties shall execute and deliver the Transition Services Agreement referred
to in Section 7.6; and 
 14.3.9. Intentionally omitted. 
 14.3.10. The Parties shall execute and deliver the Termination Agreement in the form attached hereto as Exhibit I. 
 14.3.11. The Parties shall execute and deliver an Assignment of Office Lease in the form attached hereto as Exhibit K assigning to
Buyer all of Sellers’ interests in the Office Lease as of the Closing Date. 
 ARTICLE 15 
 POST-CLOSING ADJUSTMENTS 
 15.1
Final Settlement Statement. After the Closing Date, Sellers shall prepare, in accordance with this Agreement and with GAAP, a statement (“Final Settlement Statement”), a copy of which shall be delivered
by Sellers to Buyer no later than 120 days after the Closing Date, setting forth each adjustment to the Purchase Price necessary to determine the Purchase Price and showing the calculation of such adjustments in accordance with GAAP and Article
4. Buyer shall have 60 days after receipt of the Final Settlement Statement to review such statement and to provide written notice to Sellers of Buyer’s objection to any item on the statement. Buyer’s notice shall clearly identify the
item(s) objected to and the reasons and support for the objection(s). If Buyer does not provide written objection(s) within the 60-day period, the Final Settlement Statement shall be deemed correct and shall not be subject to further adjustment. If
Buyer provides written objection(s) within the 60-day period, the Final Settlement Statement shall be deemed correct with respect to the items not objected to, and Buyer and Sellers shall meet to negotiate and resolve the objections within 15 days
of Sellers’ receipt of Buyer’s objections. If the Parties agree on all objections, the adjusted Final Settlement Statement shall be deemed correct and shall not be subject to further adjustment. Any items not agreed to at the end of the
15-day period may, upon any Party’s written request, be resolved by arbitration in accordance with Section 15.2. 
 15.2
Arbitration. If the Parties cannot agree upon the Final Settlement Statement, the dispute shall be promptly submitted to a mutually agreeable third-party accountant, which shall act as an arbitrator and promptly decide all points of
disagreement with respect to the Final Settlement Statement. The decision of such arbitrator on all such points shall be final and binding upon the Parties and shall be enforceable against any Party in any court of competent jurisdiction. The costs
and expenses of such arbitrator shall be borne 50% by Sellers and 50% by Buyer. 
 15.3 Payment of Final Purchase Price. If the
Purchase Price shown on the Final Settlement Statement is more than the Preliminary Purchase Price, Buyer shall pay such difference to Sellers in immediately available funds within five Business Days after the Final Settlement Statement has been
agreed by the Parties or decided by the arbitrator, as applicable. If the Purchase Price shown on the Final Settlement Statement is less than the Preliminary Purchase Price, Sellers shall pay such difference to Buyer in immediately available funds
within five Business Days after the Final Settlement Statement has been agreed by the Parties or decided by the arbitrator, as applicable. 
  

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 ARTICLE 16 
 ALLOCATION OF RISK 
 16.1 Sellers’ Indemnity. After Closing, each Seller shall indemnify
and hold harmless Buyer Group from and against any and all Losses suffered by Buyer Group arising from or relating to: 
 16.1.1. any breach of (a) any obligation expressly undertaken by any Seller in this Agreement (except any obligation in Section 7.1); and (b) any of the covenants in Section 7.1, representations and
warranties of any Seller in this Agreement; with respect to which breach Buyer has delivered written notice thereof to Sellers within one year after Closing; provided, however, with respect to Sellers’ indemnification obligations under this
clause (b), (i) Sellers shall have no obligation to indemnify Buyer Group with respect to any breach that is Known to Buyer as of the date hereof and relates to a Property that is operated by Buyer, (ii) Sellers shall have no obligation to
indemnify Buyer Group with respect to any individual Loss of less than $50,000; (iii) Sellers shall have no obligation to indemnify Buyer Group unless and until the amount of aggregate Losses for which indemnification is required exceeds
$20,000,000 and then Sellers shall be obligated to indemnify Buyer Group only to the extent of the amount by which such aggregate Losses exceeds $20,000,000; and (iv) Sellers’ aggregate indemnification liability shall be limited to an
amount equal to fifty percent (50%) of the Purchase Price; 
 16.1.2. the offsite disposal, prior to the Closing, of
hazardous substances, hazardous materials or hazardous waste arising from the operation or use of the Properties; 
 16.1.3.
(a) the payment of any taxes related to the Properties or production therefrom accruing prior to the Effective Time, (b) the proper payment or accounting for royalties or other lease burdens related to production from the Properties prior to
the Effective Time, (c) any personal injuries (including death) or property damages occurring on or in connection with the Properties prior to the earlier of the Closing Date and the Effective Time and (d) disputes related to the proper
billing or payment of joint interest billing accounts related to ownership or operation of the Properties prior to the earlier of the Closing Date and the Effective Time; provided, however, Sellers shall have no liability to indemnify Buyer Group
under this Section 16.1.3 unless and until the amount of aggregate Losses for which indemnification is required exceeds $2,000,000, and then Sellers shall be obligated to indemnify Buyer Group only to the extent of the amount by which
aggregate Losses exceeds $2,000,000; 
 16.1.4. any Hedge Contracts relating to the Properties; 
 16.1.5. any Debt Instruments of any Seller or any affiliate relating to the Properties; 
 16.1.6. the matters listed on Schedule 5.6 that are identified with an asterisk (*) and any other suit, action, proceeding, lawsuit
or other litigation not listed on Schedule 5.6 

  

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that is pending against any Seller as of the Effective Time relating to the Properties and to the extent attributable to the ownership or operation of the
Properties prior to the Effective Time; 
 16.1.7. ownership, operation or use of the Excluded Assets, except as set forth in
Section 16.1.11; 
 16.1.8. all Income Tax Liability and Franchise Tax Liability; 
 16.1.9. all ERISA Liability; 
 16.1.10. all FERC Liability to the extent attributable to the period prior to the Effective Time (it being agreed that if the calculations are not expressly provided by FERC or the FERC’s Office of Enforcement as
to the time period for Losses with respect to the FERC Liability, Sellers shall be responsible for a pro rata portion based on the pre-Effective Time period as compared to the post-Effective Time based reasonably on all of the facts and
circumstances) and 
 16.1.11. notwithstanding the indemnities set forth above or in the December 2007 PSA, Seller shall have
no liability with regard to any area of mutual interest or non-competition provision of any AMI Contract except as follows: 
 (i) Buyer must deliver Seller written notice of any AMI Contract within six (6) months following the Closing Date, identifying the AMI Contract and the Properties (or “Properties” as defined in the December 2007 PSA, which
“Properties”, as defined in the December 2007 PSA, are identified herein as “December 2007 PSA Properties”), if any, that are subject to such AMI Contract; 
 (ii) At Buyer’s election, Buyer shall re-convey to Seller the AMI Contract(s) and any Properties or December 2007 PSA Properties
subject to such AMI Contract(s) by assignment substantially in the form of the assignment of such Properties or December 2007 PSA Properties by Seller to Buyer; 
 (iii) Seller shall return to Buyer such portion of (a) the Purchase Price as would have been allocated to any re-conveyed Properties
under Article 11 of this Agreement had Buyer delivered a timely Title Defect Notice under this Agreement to Seller with regard to all of Seller’s interest in the re-conveyed Properties, with adjustments thereto consistent with the
provisions of Sections 4.1 and 4.2 of this Agreement, it being the intent of the Parties that Seller shall retain title to the re-conveyed Properties together with all the benefits and liabilities of ownership of such Properties
effective as of the Effective Time and (b) the “Purchase Price” as defined under the December 2007 PSA as would have been allocated to any such re-conveyed December 2007 PSA Properties under Article 11 of the December 2007 PSA
had Buyer delivered a timely “Title Defect Notice” under the December 2007 PSA to Seller with regard to all of Seller’s interest in such re-conveyed December 2007 PSA Properties, with adjustments thereto consistent with the provisions
of Sections 4.1 and 4.2 of the December 2007 PSA, it being the intent of the Parties that Seller shall reacquire title to such re-conveyed 

  

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December 2007 PSA Properties together with all the benefits and liabilities of ownership of such December 2007 PSA Properties effective as of January 1,
2008, being the “Effective Time” under the December 2007 PSA. 
 Buyer’s rights of re-conveyance under this
Section 16.1.11 are terminated with respect to that AMI Contract if Buyer fails to timely deliver notice as aforesaid and shall constitute Buyer’s sole remedy with regard to any area of mutual interest and non-competition provision
of any AMI Contract, including any rights of indemnity with respect to any such provision pursuant to the terms of the December 2007 PSA. 
 The matters for which Sellers have the obligation to indemnify and hold harmless under this Section 16.1, to the extent of such obligation, are referred to herein as “Sellers’ Retained
Liabilities.” 
 16.2 Survival of Sellers’ Representations and Warranties. Notwithstanding anything to the
contrary contained herein, the representations and warranties made by Sellers in this Agreement shall survive Closing for one year and shall be actionable during such period (but not thereafter, excluding Claims made in good faith prior to the end
of such period) in accordance with Section 16.1.1. 
 16.3 Buyer’s Indemnity. Except to the extent of Sellers’
Retained Liabilities, after Closing, Buyer shall indemnify, defend and hold harmless Seller Group from and against any and all Losses suffered by Seller Group relating to the ownership or operation of the Properties, whenever arising, whether before
or after the Effective Time, including but not limited to (a) accidents or injuries associated with the Wells, the Facilities, the casings, and all other leasehold equipment in and on the Wells, gathering lines, pipelines, tanks and all other
personal property and fixtures used on or in connection with the Properties, and (b) all Adverse Environmental Conditions, including any such conditions arising out of or relating to any discharge, release, production, storage, treatment or any
activities on or in the Properties, or the migration or transportation from any other lands to the Properties (specifically excluding transportation and disposal from the Properties to offsite locations prior to Closing), whether before or after the
Effective Time, of materials or substances that are at present, or become in the future, subject to regulation under federal, state or local laws or regulations, whether such laws or regulations now exist or are hereafter enacted INCLUDING ANY
LOSSES TO THE EXTENT ARISING IN WHOLE OR IN PART FROM THE SOLE OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF ANY MEMBER OF SELLER GROUP. BUYER HEREBY RELEASES SELLER GROUP FROM AND AGAINST ANY AND ALL CLAIMS FOR CONTRIBUTION UNDER CERCLA AND/OR
ANY OTHER PRESENT OR FUTURE ENVIRONMENTAL LAW. Notwithstanding any provision to the contrary, in no event will Buyer be obligated to indemnify Seller Group with respect to any Losses to the extent that such Losses relate to properties other than the
Properties, including Losses that relate to the interest being retained by the Sellers in the properties of the Sellers from which the Properties are being separated and sold under this Agreement. 
 16.4 Assumption by Buyer. Except to the extent of Sellers’ Retained Liabilities and as otherwise set forth in this Agreement, effective at
Closing, Buyer hereby assumes and agrees to fully and timely pay, perform, and discharge in accordance with their terms, all duties, liabilities and obligations directly and primarily arising out of the Properties acquired by Buyer at the Closing.

  

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 16.5 Limitations of Warranties. Except as otherwise set forth in this Agreement, the Properties
are being sold by Sellers to Buyer without recourse, covenant, or warranty of any kind, express, implied, or statutory, except (i) to the extent of Sellers’ Retained Liabilities and (ii) that Sellers will warrant title to the
Properties, subject to the Permitted Encumbrances, against every person whomsoever lawfully claiming or to claim the same or any part thereof by, through, or under Sellers, but not otherwise. WITHOUT LIMITATION OF THE GENERALITY OF THE IMMEDIATELY
PRECEDING SENTENCE AND EXCEPT AS SET FORTH IN THIS AGREEMENT, SELLERS CONVEY THE PROPERTIES AS-IS, WHERE-IS AND WITH ALL FAULTS AND EXPRESSLY DISCLAIM AND NEGATE ANY IMPLIED OR EXPRESS WARRANTY OF (A) MERCHANTABILITY, (B) FITNESS FOR A
PARTICULAR PURPOSE, (C) CONFORMITY TO MODELS OR SAMPLES OF MATERIALS AND (D) FREEDOM FROM REDHIBITORY VICES OR DEFECTS. EXCEPT AS SET FORTH IN THIS AGREEMENT, SELLERS ALSO EXPRESSLY DISCLAIM AND NEGATE ANY IMPLIED OR EXPRESS WARRANTY AT
COMMON LAW, BY STATUTE OR OTHERWISE RELATING TO THE ACCURACY OF ANY OF THE INFORMATION FURNISHED (EXCEPT, IN THE CASE OF CERTAIN HISTORICAL INFORMATION, TO THE EXTENT OF SECTION 5.23 OF THIS AGREEMENT) WITH RESPECT TO THE EXISTENCE OR EXTENT
OF RESERVES OR THE VALUE OF THE PROPERTIES BASED THEREON OR EXCEPT AS SET FORTH IN SECTION 5.20 OF THIS AGREEMENT, THE CONDITION OR STATE OF REPAIR OF ANY OF THE PROPERTIES; THIS DISCLAIMER AND DENIAL OF WARRANTY ALSO EXTENDS TO THE EXPRESS
OR IMPLIED REPRESENTATION OR WARRANTY AS TO THE PRICES BUYER AND SELLERS ARE OR WILL BE ENTITLED TO RECEIVE FROM PRODUCTION OF HYDROCARBONS FROM THE PROPERTIES, IT BEING UNDERSTOOD THAT ALL RESERVE, PRICE AND VALUE ESTIMATES UPON WHICH BUYER HAS
RELIED OR IS RELYING HAVE BEEN DERIVED BY THE INDIVIDUAL EVALUATION OF BUYER. BUYER HEREBY WAIVES ANY WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, WITH RESPECT TO THE ACCURACY, COMPLETENESS OR MATERIALITY OF THE INFORMATION, REPORTS, PROJECTIONS,
MATERIALS, RECORDS, AND DATA NOW, HERETOFORE, OR HEREAFTER FURNISHED OR MADE AVAILABLE TO BUYER IN CONNECTION WITH THE PROPERTIES, EXCEPT AS SET FORTH IN THIS AGREEMENT (INCLUDING ANY DESCRIPTION OF THE QUALITY OR QUANTITY OF HYDROCARBON RESERVES
(IF ANY), PRODUCTION RATES, RECOMPLETION OPPORTUNITIES, DECLINE RATES, PRICING ASSUMPTIONS, ABILITY OR POTENTIAL FOR PRODUCTION OF HYDROCARBONS FROM THE PROPERTIES, ENVIRONMENTAL CONDITION OF THE PROPERTIES, OR ANY OTHER MATTERS CONTAINED IN ANY
OTHER MATERIAL FURNISHED OR MADE AVAILABLE TO BUYER BY SELLERS OR BY SELLERS’ AGENTS OR REPRESENTATIVES). OTHER THAN AS SET FORTH IN THIS AGREEMENT, ANY AND ALL SUCH INFORMATION, REPORTS, PROJECTIONS, MATERIALS, RECORDS, AND DATA NOW,
HERETOFORE OR HEREAFTER FURNISHED BY SELLERS IS PROVIDED AS A CONVENIENCE ONLY AND ANY RELIANCE ON OR USE OF SAME IS AT BUYER’S SOLE RISK. WITH RESPECT TO THE EASEMENTS, SELLERS EXPRESSLY DISCLAIM ANY REPRESENTATIONS OR WARRANTIES THAT THEY ARE
CONTIGUOUS; THAT THE PIPELINES LIE WITHIN 

  

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THE EASEMENTS, OR THAT THEY GRANT THE RIGHT TO LAY, MAINTAIN, REPAIR, REPLACE, OPERATE, CONSTRUCTION, OR REMOVE ANY PIPELINES. Subject to the provisions of
this Agreement, if necessary, Buyer shall secure its own rights and permits to operate and maintain any pipelines or Facilities comprising a portion of the Properties on the land of others at its own expense. THERE ARE NO WARRANTIES THAT EXTEND
BEYOND THE FACE OF THIS AGREEMENT AND THE ASSIGNMENT. BUYER ACKNOWLEDGES THAT THIS WAIVER IS CONSPICUOUS. 
  

			
	 BUYER’S INITIALS:/s/    TAS
	  	SELLERS’ INITIALS:/s/     DRB

 16.6 Gas Balancing. The Parties recognize that as of the Effective Time there are over and
under imbalances with respect to gas production or processing attributable to the Properties and hereby agree that the Properties acquired by Buyer at Closing will be conveyed at Closing specifically subject to such imbalances, with Buyer bearing
and assuming all obligations with respect to any overproduction account or liability associated with the Properties and receiving the benefit of and being credited with any unproduction account or credit existing as of the Effective Time with
respect to the Properties. Preliminary financial settlement at the Closing for gas imbalances as reflected in the Preliminary Purchase Price calculated pursuant to Section 14.2 will be based upon the information set forth in Schedule
5.10, with final settlement effected pursuant to Section 15.1, in the Final Settlement Statement, based on actual overproduction and underproduction accounts as of the Effective Time. The Parties agree that such overproduction
accounts and liabilities are Permitted Encumbrances hereunder, and the existence of such overproduction accounts or liabilities shall not constitute grounds for Buyer to assert that the Properties affected thereby are subject to any Title Defects.
From and after the Closing, Buyer shall defend, save harmless and indemnify Seller Group from all Claims or Losses arising from such overproduction accounts and liabilities; provided, however, that Sellers indemnity and hold harmless obligations in
Section 16.1.1 with respect to a breach of the representation and warranty contained in Section 5.10 shall in no way be abrogated or limited by the foregoing provisions of this Section 16.6. 
 16.7 Notice of Claims. If a Claim is asserted against a Party for which the other Party may have an obligation of indemnity and defense (whether
under this Article 16 or any other provision of this Agreement), the Party seeking indemnification (“Indemnified Party”) shall give the Party from which the Indemnified Party seeks indemnification
(“Indemnifying Party”) prompt written notice of the claim, setting forth the particulars associated with the claim (including a copy of the written claim, if any) as then known by the Indemnified Party
(“Claim Notice”). 
 16.8 Defense of Claims. Within 30 days after the Indemnifying Party
receives a Claim Notice, the Indemnifying Party shall notify the Indemnified Party whether or not the Indemnifying Party will assume responsibility for defense and payment of the Claim. The Indemnified Party is authorized, prior to and during such
30 day period, to file any motion, pleading or other answer that it deems necessary or appropriate to protect its interests, or those of the Indemnifying Party, and that is not prejudicial to the Indemnifying Party. If the Indemnifying Party elects
not to assume responsibility for defense and payment of the Claim, the Indemnified Party may defend against, or enter into any settlement with respect to, the Claim as it deems appropriate without relieving the Indemnifying Party of any
indemnification obligations 

  

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the Indemnifying Party may have with respect to such Claim. The Indemnifying Party’s failure to respond in writing to a Claim Notice within the 30 day
period shall be deemed an election by the Indemnifying Party not to assume responsibility for defense and payment of the Claim. If the Indemnifying Party elects to assume responsibility for defense and payment of the Claim: (a) the Indemnifying
Party shall defend the Indemnified Party against the Claim with counsel of the Indemnifying Party’s choice (reasonably acceptable to the Indemnified Party, which shall cooperate with the Indemnifying Party in all reasonable respects in such
defense), (b) the Indemnifying Party shall pay any judgment entered or settlement with respect to such Claim, (c) the Indemnifying Party shall not consent to entry of any judgment or enter into any settlement with respect to the Claim that
(i) does not include a provision whereby the plaintiff or claimant in the matter releases the Indemnified Party from all liability with respect to the Claim or (ii) contains terms that may materially and adversely affect the Indemnified
Party (other than as a result of money damages covered by the indemnity), and (d) the Indemnified Party shall not consent to entry of any judgment or enter into any settlement with respect to the Claim without the Indemnifying Party’s
prior written consent. In all instances the Indemnified Party may employ separate counsel and participate in defense of a Claim, but the Indemnified Party shall bear all fees and expenses of counsel employed by the Indemnified Party. 
 ARTICLE 17 
 RISK OF LOSS

 17.1 Casualty Loss. If, after the date hereof and prior to the Closing any portion of the Properties shall be substantially
damaged or destroyed by fire or other casualty, or if any substantial portion of the Properties shall be taken by condemnation or the exercise of eminent domain (in either case, a “Casualty Loss”), Buyer shall
be entitled to any applicable insurance proceeds or condemnation awards and an adjustment to the Purchase Price based upon the Allocated Value of the Property destroyed or harmed, to the extent such loss is not covered by insurance or condemnation
award; provided, however, that if prior to Closing a Casualty Loss (after taking into account insurance and indemnity proceeds) occurs of more than ten percent (10%) of the Purchase Price, Sellers or Buyer shall have the right to terminate this
Agreement by delivery of written notice to the other Parties. 
 17.2 Buyer’s Risk of Loss. Except as specifically provided in
Section 17.1 with respect to any Casualty Loss, Buyer shall assume all risk of loss with respect to any change in condition of the Properties from the Effective Time and no Seller shall have any liability, as operator of the Properties
or otherwise, for losses or damages sustained with respect to the condition of the Properties or their ability to produce Hydrocarbons (other than with respect to any violation by Sellers of the pre-closing covenants contained in
Section 7.1). 
 ARTICLE 18 
 TERMINATION AND REMEDIES 
 18.1 Termination. This Agreement may be terminated as provided
below. 
 18.1.1. The Parties may terminate this Agreement by mutual written consent at any time prior to the Closing Date.

  

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 18.1.2. If the transactions contemplated hereby do not close on or before the Outside
Date, any Party may terminate this Agreement by delivery of written notice to the other Parties; provided, however, that no Party may terminate this Agreement pursuant to this Section 18.1.2 if such Party’s failure to comply with
its obligations under this Agreement caused the Closing not to occur on or before the Outside Date. 
 18.1.3. Buyer may
terminate this Agreement by delivery of written notice to Sellers at any time prior to the Closing Date if, as of the Closing Date, any Seller has breached any representation, warranty or covenant in this Agreement in any material respect and such
Seller has failed to cure such breach within a reasonable time period after receiving written notice of such breach. 
 18.1.4. Sellers may terminate this Agreement by delivery of written notice to Buyer at any time prior to the Closing Date if Buyer has breached any representation, warranty or covenant in this Agreement in any material respect and Buyer has
failed to cure such breach within a reasonable time period after receiving written notice of such breach. 
 18.1.5. Either
Party may terminate this Agreement in accordance with Section 17.1. 
 18.1.6. Either Party may terminate this
Agreement by delivery of written notice to the other Party if the aggregate of (a) the Uncured Title Defects Value plus (b) the Liquidated Title Defect Payment plus (c) the Unremedied Adverse Environmental Conditions Value plus
(d) the aggregate reduction in Purchase Price pursuant to Adverse Environmental Condition Removals exceeds ten percent (10%) of the Purchase Price. 
 18.2 Effect of Termination. Each Party’s right of termination under Section 18.1 is, subject to Section 21.17, in addition to any other rights it may have under this Agreement or
otherwise, and the exercise of such right of termination will not be an election of remedies. If this Agreement is terminated pursuant to Section 18.1, all obligations of the Parties under this Agreement will terminate, except that
Buyer’s indemnity obligations under Section 7.2, and the obligations of the Parties in this Section 18.2 and Article 21, will survive; provided, however, that if this Agreement is terminated because of a willful
or intentional breach of this Agreement by the non-terminating Party or because a Party’s condition to Closing is not satisfied as a result of the non-terminating Party’s willful or intentional failure to comply with its obligations under
this Agreement, subject to Section 21.17, the terminating Party will be entitled to pursue all remedies available at law for damages or other relief, in equity or otherwise. 
 18.3 Specific Performance and Other Remedies. Each Party hereby acknowledges that the rights of each Party to consummate the transactions
contemplated hereby are special, unique and of extraordinary character and that, in the event that either Party violates or fails or refuses to perform any covenant or agreement made by it herein, the non-breaching Party may be without an adequate
remedy at law. In the event that either Party violates or fails or refuses to perform any covenant or agreement made by such Party herein, the non-breaching Party may, subject to the terms hereof and in addition to any remedy at law for damages or
other relief, institute and prosecute an action in any court of competent jurisdiction to enforce specific performance of such covenant or agreement or seek any other equitable relief. 
  

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 ARTICLE 19 
 ADDITIONAL COVENANTS 
 19.1 Further Assurances. After the Closing, each Seller and Buyer shall
execute, acknowledge and deliver or cause to be executed, acknowledged and delivered such instruments and take such other action as may be necessary or advisable to carry out their respective obligations under this Agreement and under any exhibit,
document, certificate or other instrument delivered pursuant hereto. Each Seller shall use commercially reasonable efforts to cooperate with Buyer’s efforts to obtain all approvals and consents required by or necessary for the transactions
contemplated by this Agreement that are customarily obtained after Closing and all permits that are not assignable under Section 2.1.6. 
 19.2 Access to Records by Seller. Within 20 days after Closing, each Seller shall deliver to Buyer, at Sellers’ address, or at such other place as any of same may be kept, the Records and Data. For a period of four
(4) years after the date of Closing, Buyer will retain any original Records and Data and will make such original Records and Data available at its offices to the Sellers upon reasonable notice at reasonable times and during office hours. Buyer
and Seller agree that with respect to any Data or Records defined in this Agreement or in the December 2007 PSA, the terms of this Agreement with respect to all such Data and Records shall control. 
 19.3 Use of Sellers’ Name. Buyer agrees that within 60 days after Closing they will remove or cause to be removed the names and marks
“Plains Exploration & Production Company,” and “PXP,” and/or all variations and derivatives thereof and logos relating thereto from the Properties and will not
thereafter make any use whatsoever of such names, marks and logos. 
 19.4 Sellers’ Employees. Notwithstanding the terms of the
Confidentiality Agreement, upon execution of this Agreement, Buyer shall be permitted to contact each of those employees identified on Schedule 19.4 for the purpose of offering post-Closing employment to such employees in accordance with the
provisions of Schedule 19.4. 
 ARTICLE 20 
 ARBITRATION 
 Except as provided in Article 18 or elsewhere in this Agreement, any
controversy, dispute or claim between the Parties arising under this Agreement shall be determined by binding arbitration, the conduct of which shall be governed by the Commercial Arbitration Rules of the American Arbitration Association.

 20.1 Determination. The arbitrators selected to act hereunder under the Commercial Arbitration Rules of the American Arbitration
Association shall be qualified by education and experience to pass on the particular question in dispute. The arbitrators shall promptly hear and determine (after due notice of hearing and giving the parties a reasonable opportunity to be heard) the
questions submitted, and shall render their decision within 60 days after appointment 

  

 42 

 
of the third arbitrator. The arbitration shall be held in Houston, Texas. If within such period a decision is not rendered by the board, or majority thereof,
new arbitrators may be named and shall act hereunder at the election of either Buyer or Sellers in like manner as if none had been previously named. 
 20.2 Decision Binding. The decision of the arbitrators, or the majority thereof, made in writing shall be final and binding upon the parties hereto as to the questions submitted, shall be enforceable against
any Party in any court of competent jurisdiction, and Buyer and Sellers will abide by and comply with such decision. The expenses of arbitration, including reasonable compensation to the arbitrators, shall be borne equally by the parties hereto. The
arbitrators shall not be entitled to award punitive damages. 
 ARTICLE 21 
 MISCELLANEOUS 
 21.1 Notice. All notices required or permitted under this
Agreement shall be in writing and shall be delivered personally or by certified mail, postage prepaid and return receipt requested or by telecopier as follows: 
  

					
	Sellers:	    	c/o Plains Exploration & Production Company
		    	700 Milam, Suite 3100
		    	Houston, Texas 77002
		    	Attention:	  	Marc A. Hensel
		    		  	Vice President Acquisitions & Divestments
		    	Telephone:	  	(713) 579-6033
		    	Telecopier:	  	(713) 579-6200
		
		    	with a copy to:
		
		    	Plains Exploration & Production Company
		    	700 Milam, Suite 3100
		    	Houston, Texas 77002
		    	Attention:	  	John F. Wombwell
		    		  	Executive Vice President and General Counsel
		    	Telephone:	  	(713) 579-6123
		    	Telecopier:	  	(713) 579-6231
		
	Buyer:	    	c/o OXY USA Inc.
		    	10889 Wilshire Boulevard
		    	Los Angeles, California 90024
		    	Attention:	  	Todd A. Stevens
		    	Telephone:	  	(310) 443-6141
		    	Telecopier:	  	(310) 443-6435

  

 43 

					
		
		    	with a copy to:
		
		    	Occidental Oil and Gas Corporation
		    	 10889 Wilshire Boulevard

		    	 Los Angeles, California 90024

		    	 Attention:
	  	 Vice President and General Counsel

		    	 Telephone:
	  	 (310) 433-6396

		    	 Telecopier:
	  	 (310) 443-6192

 or to such other place within the United State of America as either Party may designate as to itself by written
notice to the other. All notices given by personal delivery or mail shall be effective on the date of actual receipt at the appropriate address. Notices given by telecopier shall be effective upon actual receipt if received during recipient’s
normal business hours or at the beginning of the next Business Day after receipt if received after the recipient’s normal business hours. All notices by telecopier shall be confirmed in writing on the day of transmission by either mailing by
postage prepaid certified mail with return receipt requested, or by personal delivery. 
 21.2 Governing Law. This Agreement and the
obligations of the Parties hereunder will be governed by and construed in accordance with the laws of the State of Texas, without giving effect to any choice of law principles. 
 21.3 Assignment. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective permitted
successors and assigns. Notwithstanding the preceding sentence, except as permitted below, neither party shall assign this Agreement or its rights hereunder without the other party’s written consent, which shall not be unreasonably withheld.
Buyer shall, without the obligation to obtain the prior written consent of Sellers but with the obligation to provide contemporaneous or prior notice to Sellers, be entitled to assign this Agreement or all or any part of its rights or obligations
hereunder to one or more affiliates of Buyer, but no such assignment will release or discharge Buyer from any of its obligations as the “Buyer” under this Agreement or any certificate, document, instrument or writing
delivered pursuant hereto. 
 21.4 Entire Agreement. This Agreement, together with the Exhibits and Schedules hereto and the
certificates, documents, instruments and writings that are delivered pursuant hereto, constitutes the entire agreement and understanding of the Parties in respect of its subject matters and supersedes all prior understandings, agreements, or
representations by or among the Parties, written or oral, to the extent they relate in any way to the subject matter hereof or the Transactions, excluding the Confidentiality Agreement dated September 8, 2008 between PXP and Occidental Oil and
Gas Corporation (the “Confidentiality Agreement”), which is addressed in Section 21.8. There are no third party beneficiaries having rights under or with respect to this Agreement. 
 21.5 Amendment; Waiver. No amendment, modification, replacement, termination or cancellation of any provision of this Agreement will be valid,
unless the same shall be in writing and signed by Buyer and Sellers. No waiver by any Party of any default, misrepresentation or breach of warranty or covenant hereunder, whether intentional or not, may be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or affect in any way any rights arising because of any prior or subsequent such occurrence. 
  

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 21.6 Severability. The provisions of this Agreement will be deemed severable and the invalidity or
unenforceability of any provision will not affect the validity or enforceability of the other provisions hereof; provided, however, that if any provision of this Agreement, as applied to any Party or to any circumstance, is adjudged by a court of
competent jurisdiction, arbitrator, or mediator not to be enforceable in accordance with its terms, the Parties agree that the court of competent jurisdiction, arbitrator, or mediator making such determination will have the power to modify the
provision in a manner consistent with its objectives such that it is enforceable, and/or to delete specific words or phrases, and in its reduced form, such provision will then be enforceable and will be enforced. 
 21.7 Construction. The Parties have participated jointly in the negotiation and drafting of this Agreement. If an ambiguity or question of intent
or interpretation arises, this Agreement will be construed as if drafted jointly by the Parties and no presumption or burden of proof will arise favoring or disfavoring any Party because of the authorship of any provision of this Agreement. Any
reference to any federal, state, local, or foreign law will be deemed also to refer to such law as amended and all rules and regulations promulgated thereunder, unless the context requires otherwise. The words “include,”
“includes” and “including” will be deemed to be followed by “without limitation.” Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in the singular form will be
construed to include the plural and vice versa, unless the context otherwise requires. The words “this Agreement,” “herein,” “hereof,” “hereby,” “hereunder” and words of similar import refer to this
Agreement as a whole and not to any particular subdivision unless expressly so limited. The Exhibits and Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. References herein to any Section or Article
shall be references to a Section or Article of this Agreement unless the context clearly requires otherwise. 
 21.8 Confidentiality.
All information made available by PXP to Buyer pursuant to this Agreement shall be maintained as confidential by Buyer until Closing. The Parties shall remain subject, until the Closing, to the Confidentiality Agreement, at which time of Closing
such Confidentiality Agreement shall terminate. Buyer shall take all actions reasonably necessary to ensure that Buyer’s employees, consultants, representatives and agents comply with the provisions of this Section 21.8. After
Closing, Sellers will maintain as confidential all information permitted to be retained (either as an original or copy) hereunder. 
 21.9
Standstill Until September 8, 2011, neither Buyer nor Occidental Petroleum Corporation nor any of its subsidiaries shall, without the prior written consent of PXP, effect or seek, offer, agree or propose (whether publicly or otherwise)
to effect, or cause to participate in or in any way advise, encourage or assist (including financial assistance) any other person to effect or seek, offer, agree or propose (whether publicly or otherwise) to effect or participate in: (i) any
acquisition of any securities or rights to acquire any securities (or any other beneficial ownership thereof) of PXP, whether such agreement or proposal is with any of the shareholders of PXP or with a third party (provided that the foregoing shall
not apply to any acquisition by any employee benefit plans of Buyer or any of its affiliates in the ordinary course of business); (ii) any merger, or other business combination or tender, take-over bid or exchange offer involving the securities
of PXP; (iii) any recapitalization, restructuring, liquidation, dissolution or other extraordinary transaction with respect to PXP, or (iv) any “solicitation” of “proxies” (as such terms are used in the rules of the
United States Securities and Exchange Commission) or consents to vote with respect to any voting securities of PXP. 
  

 45 

 21.10 Headings. The article and Section headings contained in this Agreement are inserted for
convenience only and will not affect in any way the meaning or interpretation of this Agreement. 
 21.11 Counterparts. This Agreement
may be executed in two or more counterparts, each of which will be deemed an original but all of which together will constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by telecopier shall be equally as
effective as delivery of an original executed counterpart of this Agreement. Any Party delivering an executed counterpart of this Agreement by telecopier also shall deliver an original executed counterpart of this Agreement, but the failure to
deliver an original executed counterpart shall not affect the validity, enforceability and binding effect of this Agreement. 
 21.12
Expenses, Fees and Taxes. 
 21.12.1. Each of the Parties hereto shall pay its own fees and expenses incident to the
negotiation and preparation of this Agreement and consummation of the transactions contemplated hereby, including brokers’ fees. Buyer shall be responsible for the cost of all fees for the recording of transfer documents. All other costs shall
be borne by the Party incurring them, except as otherwise set forth in this Agreement. All taxes, whether in the form of income, franchise, margin or capital gains taxes, imposed by federal, state, or foreign tax authorities are the obligation of
and shall be borne by the Party incurring such tax. Notwithstanding anything to the contrary herein, it is acknowledged and agreed by and between Sellers and Buyer that the Purchase Price excludes any sales taxes or other taxes of a similar nature
in connection with the sale of property pursuant to this Agreement. Buyer and Seller will use commercially reasonable efforts and cooperate in good faith to exempt the sale, conveyance, assignments and transfers to be made to Buyer from any sales,
use, stamp, real estate transfer, documentary, registration, recording and other similar taxes (collectively “Transfer Taxes”). If a determination is ever made that a Transfer Tax applies, Buyer shall be liable for such tax.
Buyer shall indemnify and hold Seller Group harmless with respect to the payment of any of such taxes, including any interest or penalties assessed thereon. The indemnity and hold harmless obligation contained in the preceding sentence shall survive
the Closing. 
 21.12.2. If the transactions hereunder constitute an applicable asset acquisition pursuant to
Section 1060 of the Code, the Parties agree to cooperate in the preparation of Form 8594. The Parties agree that the Allocated Value for each property on Exhibit B shall be used for this purpose. Buyer and Sellers shall (a) be bound
by this allocation for all tax purposes, (b) timely file all forms (including IRS Form 8594) and tax returns required to be filed in connection with this allocation, (c) prepare and file all tax returns in a manner consistent with this
allocation, and (d) take no position inconsistent with this allocation in any tax return, any audit or examination by, or any proceeding before, any taxing authority or otherwise. In the event that the allocation is disputed by any taxing
authority, the Party receiving notice of such dispute shall promptly notify and consult with the other Party and keep the other Party apprised of material developments concerning resolution of such dispute. 
  

 46 

 21.13 Tax-Deferred Exchange Option. Either Party shall have the right to elect to effect a
tax-deferred exchange under Internal Revenue Code Section 1031 (a “Tax Deferred Exchange”) for all or part of the Properties at any time prior to the date seven (7) days before the Closing Date. If a Party elects to
effect a Tax-Deferred Exchange (“Electing Party”), the other Party agrees to execute escrow instructions, documents, agreements or instruments to effect the exchange; provided, however, that the other Party shall incur no
additional costs, expenses, fees or liabilities as a result of or connected with the exchange. Each Seller and Buyer may assign any of its rights and delegate performance of any of its duties under this Agreement in whole or in part to a third party
in order to effect such an exchange; provided, however, that each Electing Party shall remain responsible to the other Party for the full and prompt performance of their respective delegated duties. The Electing Party shall indemnify and hold other
Party harmless from and against all claims, expenses (including reasonable attorneys’ fees), loss and liability resulting from its participation in any exchange undertaken pursuant to this Section 21.13 pursuant to the request of
Electing Party. 
 21.14 Intentionally omitted. 
 21.15 Intentionally omitted. 
 21.16 Public Announcements. The Parties agree that prior to
making any public announcement or statement with respect to the transactions contemplated by this Agreement, the Party desiring to make such public announcement or statement shall consult with the other Party hereto and endeavor in good faith to
obtain approval of the other Party to the text of a public announcement or statement to be made solely by Sellers, on the one hand, or Buyer, on the other, as the case may be; provided, however, if Sellers, on the one hand, or Buyer, on the other is
required by law or the rules of the New York Stock Exchange to make such public announcement or statement, then the same may be made without the approval of the other Party. 
 21.17 Limitation on Damages. Notwithstanding any term or provision of this Agreement to the contrary, in no event shall any party to this
Agreement be liable for any consequential, special, exemplary, punitive or similar damages or lost profits arising out of or relating to this Agreement. 
 [Remainder of page intentionally left blank] 
  

 47 

 Executed as of the date set forth above. 
  

			
	 SELLERS:

	
	Plains Exploration & Production Company
		
	By:	 	 /s/ Doss R. Bourgeois

		 	Doss R. Bourgeois
		 	Executive Vice President – Exploration & Production

  

			
	Plains Resources, Inc.,
	PXP Hell’s Gulch LLC,
	PXP East Plateau LLC,
	PXP Brush Creek LLC,
	PXP Piceance LLC
	Pogo Producing Company LLC
	 Pogo Panhandle 2004 LP, by Latigo Investments LLC, its general partner

	 Latigo Petroleum Texas, LP, by Pogo Energy, Inc., its general partner

		
	By:	 	 /s/ Doss R. Bourgeois

		 	Doss R. Bourgeois
		 	Vice President, as to each

 Signature Page 1 of 2 to Purchase and Sale Agreement 

			
	BUYER:
	
	OXY USA Inc.
		
	By:	 	 /s/ Todd A. Stevens

		 	Todd A. Stevens
		 	Vice President

 Signature Page 2 of 2 to Purchase and Sale AgreementForm of Warrant to Purchase Common Stock of eGain Communications Corporation

 Exhibit 4.1 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES AND ANY SECURITIES OR SHARES ISSUED HEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT
ITS PRINCIPAL EXECUTIVE OFFICES. 
 No. WC-2008-__ 
 WARRANT TO PURCHASE COMMON STOCK 
 OF 
 eGAIN COMMUNICATIONS CORPORATION 
 This certifies that, for value received,
             or his or its registered assigns (“Holder”) is entitled, subject to the terms and conditions set forth below, to purchase from eGAIN
COMMUNICATIONS CORPORATION (the “Company”), in whole or in part that number of fully paid and nonassessable shares (the “Warrant Shares”) of Common Stock (as defined below) determined in accordance
with Section 2 below and at a purchase price per share (the “Exercise Price”) determined in accordance with Section 2 below. The number, character and Exercise Price of such shares of Common Stock are subject to
adjustment as provided below and all references to “Warrant Shares” and “Exercise Price” herein shall be deemed to include any such adjustment or series of adjustments. The term “Warrant” as used herein shall mean this
Warrant, and any warrants delivered in substitution or exchange therefor as provided herein. This Warrant is issued in connection with the conversion and extension of certain subordinated secured promissory notes held by the initial Holder hereof in
accordance with that certain Conversion Agreement and Amendment to Subordinated Secured Promissory Notes (the “Conversion and Extension Agreement”) by and between the Company and the parties set forth therein dated as of
September 24, 2008. 
 1. Term of Warrant. Subject to the terms and conditions set forth herein, this Warrant shall be
exercisable, in whole or in part, during the term commencing on the date hereof and ending at 5:00 p.m., Pacific time, three (3) years from the date hereof, and shall be void thereafter (the “Exercise Period”).

 2. Exercise Price; Common Stock; Number of Shares. 
 (a) Exercise Price. The term “Exercise Price” shall mean $0.95. 
 (b) Common
Stock. The term “Common Stock” shall mean the Company’s common stock, par value $0.001 per share. 

 (c) Number of Shares. Subject to the provisions of Section 1, this Warrant shall be
exercisable for up to [            ] shares of Common Stock. The number of shares subject to the Warrant shall be subject to adjustment as set forth in Section 11. 

3. Exercise of Warrant. 
 (a)
Cash Exercise. This Warrant may be exercised by the Holder during the Exercise Period by (i) the surrender of this Warrant to the Company, with the Notice of Exercise annexed hereto duly completed and executed on behalf of the Holder, at
the office of the Company (or such other office or agency of the Company as it may designate by notice in writing to the Holder at the address of the Holder appearing on the books of the Company) during the Exercise Period and (ii) the delivery
of payment to the Company, for the account of the Company, by cash, wire transfer of immediately available funds to a bank account specified by the Company, or by certified or bank cashier’s check, of the Exercise Price for the number of
Warrant Shares specified in the Exercise Form in lawful money of the United States of America. The Company agrees that such Warrant Shares shall be deemed to be issued to the Holder as the record holder of such Warrant Shares as of the close of
business on the date on which this Warrant shall have been surrendered and payment made for the Warrant Shares as aforesaid. A stock certificate or certificates for the Warrant Shares specified in the Exercise Form shall be delivered to the Holder
as promptly as practicable, and in any event within 10 days, thereafter. If this Warrant shall have been exercised only in part, the Company shall, at the time of delivery of the stock certificate or certificates, deliver to the Holder a new Warrant
evidencing the rights to purchase the remaining Warrant Shares, which new Warrant shall in all other respects be identical with this Warrant. 
 (b) Net Issue Exercise. In lieu of exercising this Warrant pursuant to Section 3(a), this Warrant may be exercised by the Holder by the surrender of this Warrant to the Company, with a duly executed Exercise Form marked to
reflect Net Issue Exercise and specifying the number of shares of Common Stock to be purchased, during normal business hours on any Business Day during the Exercise Period. The Company agrees that such shares of Common Stock shall be deemed to be
issued to the Holder as the record holder of such shares of Common Stock as of the close of business on the date on which this Warrant shall have been surrendered as aforesaid. Upon such exercise, the Holder shall be entitled to receive shares equal
to the value of this Warrant (or the portion thereof being canceled) by surrender of this Warrant to the Company together with notice of such election in which event the Company shall issue to Holder a number of shares of Common Stock computed as of
the date of surrender of this Warrant to the Company using the following formula: 
 X = Y(A-B) 
 A 
  

					
	Where	  	X  =	  	the number of shares of Common Stock to be issued to Holder under this Section 3(b);
			
		  	Y  =	  	the number of shares of Common Stock otherwise purchasable under this Warrant (as adjusted to the date of such calculation);

  

 2 

					
	 	 	A   =	  	the fair market value of one share of the Common Stock at the date of such calculation; and
			
		 	B   =	  	the Exercise Price (as adjusted to the date of such calculation).

 (c) Fair Market Value. For purposes of Section 3(b) only, fair market value of one
share of the Company’s Common Stock shall mean, as of any date: 
 (i) the last closing price per share of the
Company’s Common Stock on the principal national securities exchange on which the Common Stock is listed or admitted to trading, or 
 (ii) the last reported sales price per share of the Company’s Common Stock on the Nasdaq Stock Market (“Nasdaq”) or the OTC Bulletin Board (the “OTCBB”) if the
Company’s Common Stock is not listed or traded on any such exchange, or 
 (iii) the average of the bid and asked price
per share as reported in the “pink sheets” published by the National Quotation Bureau, Inc. (the “pink sheets”) if the Company’s Common Stock is not listed or traded on any exchange, Nasdaq or the OTCBB, or

 (iv) if such quotations are not available, the fair market value per share of the Company’s Common Stock on the date
such notice was received by the Company as reasonably determined in good faith by the Board of Directors of the Company. 
 (d) This Warrant
shall be deemed to have been exercised immediately prior to the close of business on the date of its surrender for exercise as provided above, and the person entitled to receive the shares of Common Stock issuable upon such exercise shall be treated
for all purposes as the holder of record of such shares as of the close of business on such date. As promptly as practicable on or after such date and in any event within ten (10) days thereafter, the Company at its expense shall issue and
deliver to the person or persons entitled to receive the same a certificate or certificates for the number of shares issuable upon such exercise. In the event that this Warrant is exercised in part, the Company at its expense will execute and
deliver a new Warrant of like tenor exercisable for the number of shares for which this Warrant may then be exercised. 
 4. No Fractional
Shares or Scrip. No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant. In lieu of any fractional share to which the Holder would otherwise be entitled, the Company shall make a cash
payment equal to the Exercise Price multiplied by such fraction. 
 5. Replacement of Warrant. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in the case of loss, theft or destruction, on delivery of an indemnity agreement reasonably satisfactory in form and substance to the Company or, in the
case of mutilation, on surrender and cancellation of this Warrant, the Company at its expense shall execute and deliver, in lieu of this Warrant, a new warrant of like tenor and amount. 
  

 3 

 6. Rights of Stockholders. Subject to Sections 9 and 11 of this Warrant, the Holder shall not
be entitled to vote or receive dividends or be deemed the holder of Common Stock or any other securities of the Company that may at any time be issuable on the exercise hereof for any purpose, nor shall anything contained herein be construed to
confer upon the Holder, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any
corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value, or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to
receive dividends or subscription rights or otherwise until the Warrant shall have been exercised as provided herein. 
 7. Transfer of
Warrant. 
 (a) Warrant Register. The Company will maintain a register (the “Warrant Register”) containing
the names and addresses of the Holder or Holders. Any Holder of this Warrant or any portion thereof may change his address as shown on the Warrant Register by written notice to the Company requesting such change. Any notice or written communication
required or permitted to be given to the Holder may be delivered or given by mail to such Holder as shown on the Warrant Register and at the address shown on the Warrant Register. Until this Warrant is transferred on the Warrant Register of the
Company, the Company may treat the Holder as shown on the Warrant Register as the absolute owner of this Warrant for all purposes, notwithstanding any notice to the contrary. 
 (b) Warrant Agent. The Company may, by written notice to the Holder, appoint an agent for the purpose of maintaining the Warrant Register referred
to in Section 7(a) above, issuing the Warrant Shares or other securities then issuable upon the exercise of this Warrant, exchanging this Warrant, replacing this Warrant, or any or all of the foregoing. Thereafter, any such registration,
issuance, exchange, or replacement, as the case may be, shall be made at the office of such agent. 
 (c) Transferability and
Nonnegotiability of Warrant. This Warrant may only be transferred or assigned in whole or in part in accordance with the transfer and assignment provisions set forth in Section 7.11 of the Conversion and Extension Agreement and compliance
with all applicable federal and state securities laws by the transferor and the transferee (including the delivery of investment representation letters and legal opinions reasonably satisfactory to the Company, if such are requested by the Company).
Notwithstanding the foregoing, no investment representation letter or opinion of counsel shall be required for any transfer of this Warrant (or any portion thereof) or any shares of Common Stock issued upon exercise hereof (i) in compliance
with Rule 144 or Rule 144A of the Act, or (ii) by gift, will or intestate succession by the Holder to his or her spouse or lineal descendants or ancestors or any trust for any of the foregoing; provided that in each of the foregoing
cases the transferee agrees in writing to be subject to the terms of this Section 7(c). Subject to the provisions of this Warrant with respect to compliance with the Securities Act of 1933, as amended (the “Act”), title
to this Warrant may be transferred by endorsement (by the Holder executing the Assignment Form annexed hereto) and delivery in the same manner as a negotiable instrument transferable by endorsement and delivery. 
  

 4 

 (d) Exchange of Warrant Upon a Transfer. On surrender of this Warrant for exchange, properly
endorsed on the Assignment Form and subject to the provisions of this Warrant with respect to compliance with the Act and with the limitations on assignments and transfers and contained in this Section 7, the Company at its expense shall issue
to or on the order of the Holder a new warrant or warrants of like tenor, in the name of the Holder or as the Holder (on payment by the Holder of any applicable transfer taxes) may direct, for the number of shares issuable upon exercise hereof.

 (e) Compliance with Securities Laws. 
 (i) The Holder of this Warrant, by acceptance hereof, acknowledges that this Warrant and the shares of Common Stock to be issued upon exercise hereof are being acquired solely for the Holder’s own account and not
as a nominee for any other party, and for investment, and that the Holder will not offer, sell or otherwise dispose of this Warrant or any shares of Common Stock to be issued upon exercise hereof except under circumstances that will not result in a
violation of the Act or any applicable state securities laws. Upon exercise of this Warrant, the Holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of Common Stock so purchased are
being acquired solely for the Holder’s own account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale. 
 (ii) This Warrant and all shares of Common Stock issued upon exercise hereof shall be stamped or imprinted with a legend in substantially
the following form (in addition to any legend required by state securities laws): 
 THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933. SUCH SECURITIES AND ANY SECURITIES OR SHARES ISSUED HEREUNDER MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT. COPIES OF THE AGREEMENT COVERING
THE PURCHASE OF THESE SECURITIES AND RESTRICTING THEIR TRANSFER OR SALE MAY BE OBTAINED AT NO COST BY WRITTEN REQUEST MADE BY THE HOLDER OF RECORD HEREOF TO THE SECRETARY OF THE COMPANY AT ITS PRINCIPAL EXECUTIVE OFFICES. 
 (iii) The Company agrees to remove promptly, upon the request of the holder of this Warrant and Securities issuable upon exercise of the
Warrant, the legend set forth in Section 7(e)(ii) above from the documents/certificates for such securities upon full compliance with this Agreement and Rules 144 and 145. 
 8. Reservation of Stock. The Company covenants that during the term this Warrant is exercisable, the Company will reserve from its authorized and
unissued Common Stock a sufficient number of shares to provide for the issuance of Common Stock upon the exercise of this Warrant and, from time to time, will take all steps necessary to amend its Restated Certificate of Incorporation (the
“Restated Certificate”) to provide sufficient reserves of shares of Common Stock issuable upon exercise of the Warrant. The Company further covenants that 

  

 5 

 
all shares that may be issued upon the exercise of rights represented by this Warrant, upon exercise of the rights represented by this Warrant and payment of
the Exercise Price, all as set forth herein, will be free from all taxes, liens and charges in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously or otherwise specified herein). 
 9. Notices. 
 (a) Whenever the
Exercise Price or number of shares purchasable hereunder shall be adjusted pursuant to Section 11 hereof, the Company shall issue a certificate signed by its Chief Financial Officer setting forth, in reasonable detail, the event requiring the
adjustment, the amount of the adjustment, the method by which such adjustment was calculated, and the Exercise Price and number of shares purchasable hereunder after giving effect to such adjustment, and shall cause a copy of such certificate to be
mailed (by first-class mail, postage prepaid) to the Holder of this Warrant. 
 (b) In case: 
 (i) the Company shall take a record of the holders of its Common Stock (or other stock or securities at the time receivable upon the
exercise of this Warrant) for the purpose of entitling them to receive any dividend or other distribution, or any right to subscribe for or purchase any shares of stock of any class or any other securities, or to receive any other right; 

(ii) of any capital reorganization of the Company, any reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation, or any conveyance of all or substantially all of the assets of the Company to another corporation; 
 (iii) of any voluntary dissolution, liquidation or winding-up of the Company; or 
 (iv) of
any redemption or conversion of all outstanding Common Stock; 
 then, and in each such case, the Company will mail or cause to be mailed to the Holder or
Holders a notice specifying, as the case may be, (A) the date on which a record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, or
(B) the date on which such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation, winding-up, redemption or conversion is to take place, and the time, if any is to be fixed, as of which the holders of
record of Common Stock (or such stock or securities at the time receivable upon the exercise of this Warrant) shall be entitled to exchange their shares of Common Stock (or such other stock or securities) for securities or other property deliverable
upon such reorganization, reclassification, consolidation, merger, conveyance, dissolution, liquidation or winding-up. Such notice shall be mailed at least fifteen (15) days prior to the date therein specified. 
 (c) All such notices, advices and communications shall be deemed to have been received in accordance with Section 7.5 of the Conversion and
Extension Agreement. 
  

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 10. Amendments. This Warrant and any term hereof may be changed, waived, discharged or terminated
only by an instrument in writing signed by the party against which enforcement of such change, waiver, discharge or termination is sought. 
 11. Adjustments. The Exercise Price and the number of shares purchasable hereunder are subject to adjustment from time to time as follows: 
 (a) Reclassification, etc. If the Company, at any time while this Warrant, or any portion thereof, remains outstanding and unexpired by reclassification of securities or otherwise, shall change any of the
securities as to which purchase rights under this Warrant exist into the same or a different number of securities of any other class or classes, this Warrant shall thereafter represent the right to acquire such number and kind of securities as would
have been issuable as the result of such change with respect to the securities that were subject to the purchase rights under this Warrant immediately prior to such reclassification or other change and the Exercise Price therefor shall be
appropriately adjusted, all subject to further adjustment as provided in this Section 11. 
 (b) Split, Subdivision or Combination of
Shares. If the Company at any time while this Warrant, or any portion thereof, remains outstanding and unexpired shall split, subdivide or combine the securities as to which purchase rights under this Warrant exist, into a different number of
securities of the same class, then (i) in the case of a split or subdivision, the Exercise Price for such securities shall be proportionately decreased and the securities issuable upon exercise of this Warrant shall be proportionately
increased, and (ii) in the case of a combination, the Exercise Price for such securities shall be proportionately increased and the securities issuable upon exercise of this Warrant shall be proportionately decreased. 
 (c) Adjustments for Dividends in Stock or Other Securities or Property. If while this Warrant, or any portion hereof, remains outstanding and
unexpired the holders of the securities as to which purchase rights under this Warrant exist at the time shall have received, or, on or after the record date fixed for the determination of eligible stockholders, shall have become entitled to
receive, without payment therefor, other or additional stock or other securities or property (other than cash) of the Company by way of dividend, then and in each case, this Warrant shall represent the right to acquire, in addition to the number of
shares of the security receivable upon exercise of this Warrant, and without payment of any additional consideration therefor, the amount of such other or additional stock or other securities or property (other than cash) of the Company that such
holder would hold on the date of such exercise had it been the holder of record of the security receivable upon exercise of this Warrant on the date hereof and had thereafter, during the period from the date hereof to and including the date of such
exercise, retained such shares and/or all other additional stock available by it as aforesaid during such period, giving effect to all adjustments called for during such period by the provisions of this Section 11. 
 (d) Certificate as to Adjustments. Upon the occurrence of each adjustment or readjustment pursuant to this Section 11, the Company at its
expense shall promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to each Holder of this Warrant a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such
adjustment or readjustment is based. The Company shall, upon the 

  

 7 

 
written request, at any time, of any such Holder, furnish or cause to be furnished to such Holder a like certificate setting forth: (i) such adjustments
and readjustments; (ii) the Exercise Price at the time in effect; and (iii) the number of shares and the amount, if any, of other property that at the time would be received upon the exercise of the Warrant. 
 (e) No Impairment. The Company will not, by any voluntary action, avoid or seek to avoid the observance or performance of any of the terms to be
observed or performed hereunder by the Company, but will at all times in good faith assist in the carrying out of all the provisions of this Section 11 and in the taking of all such action as may be necessary or appropriate in order to protect
the rights of the Holders of this Warrant against impairment. 
 12. Miscellaneous. 
 (a) This Warrant shall be governed by the laws of the State of California as applied to agreements entered into in the State of California by and among
residents of the State of California. 
 (b) In the event of a dispute with regard to the interpretation of this Warrant, the prevailing
party may collect the cost of attorneys’ fees, litigation expenses or such other expenses as may be incurred in the enforcement of the prevailing party’s rights hereunder. 
 (c) This Warrant shall be exercisable as provided for herein, except that in the event that the expiration date of this Warrant shall fall on a Saturday,
Sunday and or United States federally recognized holiday, this expiration date for this Warrant shall be extended to 5:00 p.m. Pacific standard time on the business day following such Saturday, Sunday or recognized holiday. 
  

 8 

 IN WITNESS WHEREOF, eGAIN COMMUNICATIONS CORPORATION has caused this Warrant to be executed by its
officers thereunto duly authorized. 
  

											
	 Dated: September 24, 2008
	 		 	
			
		 		 	THE COMPANY:
			
		 		 	eGAIN COMMUNICATIONS CORPORATION
					
		 		 		 	By	 	 
		 		 		 		 	Its:	 	Eric Smit
		 		 		 		 	Title:	 	Chief Financial Officer

  

 9 

 NOTICE OF EXERCISE 
 To: eGAIN COMMUNICATIONS CORPORATION 
 (1) The undersigned hereby elects to purchase
             shares of Common Stock of eGAIN COMMUNICATIONS CORPORATION, pursuant to the terms of the attached Warrant, and tenders herewith payment of the purchase price for such
shares in full. 
 (2) In exercising this Warrant, the undersigned hereby confirms and acknowledges that the shares of Common Stock to be
issued upon exercise hereof are being acquired solely for the account of the undersigned and not as a nominee for any other party, or for investment, and that the undersigned will not offer, sell or otherwise dispose of any such shares of Common
Stock except under circumstances that will not result in a violation of the Securities Act of 1933, as amended, or any applicable state securities laws. 
 (3) Please issue a certificate or certificates representing said shares of Common Stock in the name of the undersigned or in such other name as is specified below: 
  

					
		 		 	 
		 		 	(Name)

  

					
		 		 	 
		 		 	(Name)

 (4) Please issue a new Warrant for the unexercised portion of the attached Warrant in the name of
the undersigned or in such other name as is specified below: 
  

					
		 		 	 
		 		 	(Name)
			
	_____________________	 		 	 
	(Date)	 		 	(Signature)

  

 10 

 ASSIGNMENT FORM 
 FOR VALUE RECEIVED, the undersigned registered owner of this Warrant hereby sells, assigns and transfers unto the Assignee named below all of the rights of the undersigned under the within Warrant, with respect to the
number of shares of Common Stock set forth below: 
  

					
	 Name of Assignee
	 	Address	 	No. of Shares
		 		 	
		 		 	
		 		 	
		 		 	

 and does hereby irrevocably constitute and appoint Attorney
                                     to make such transfer on
the books of eGAIN COMMUNICATIONS CORPORATION, maintained for the purpose, with full power of substitution in the premises. 
 The
undersigned also represents that, by assignment hereof, the Assignee acknowledges that this Warrant and the shares of stock to be issued upon exercise hereof or conversion thereof are being acquired for investment and that the Assignee will not
offer, sell or otherwise dispose of this Warrant or any shares of stock to be issued upon exercise hereof or conversion thereof except under circumstances which will not result in a violation of the Securities Act of 1933, as amended, or any
applicable state securities laws. Further, the Assignee has acknowledged that upon exercise of this Warrant, the Assignee shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the shares of stock so
purchased are being acquired for investment and not with a view toward distribution or resale. 
 Dated:
                         
  

					
		 		 	 
		 		 	Signature of Holder

  

 11

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