Document:

EX-10.2

 Exhibit 10.2 

PURCHASE AND SALE AGREEMENT 

BY AND BETWEEN 

Dune Energy, Inc., 

Dune Operating Company, 

AND 

Dune Properties, Inc., 

COLLECTIVELY AS “SELLERS” 

AND 

White Marlin Oil and Gas Company, LLC, 

AS “BUYER” 

DATED 
 JUNE 24, 2015

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
		
	 ARTICLE I. DEFINITIONS
	  	 	1	  
			
	 Section 1.01
	  	 Defined Terms
	  	 	1	  
			
	 Section 1.02
	  	 Interpretation
	  	 	9	  
		
	 ARTICLE II. ASSETS
	  	 	9	  
			
	 Section 2.01
	  	 Agreement to Sell and Purchase
	  	 	9	  
			
	 Section 2.02
	  	 Assets
	  	 	9	  
			
	 Section 2.03
	  	 Excluded and Reserved Assets
	  	 	11	  
			
	 Section 2.04
	  	 Revenues and Expenses
	  	 	13	  
		
	 ARTICLE III. CONSIDERATION
	  	 	13	  
			
	 Section 3.01
	  	 Purchase Price
	  	 	13	  
			
	 Section 3.02
	  	 Earnest Money
	  	 	13	  
			
	 Section 3.03
	  	 Allocated Values
	  	 	13	  
		
	 ARTICLE IV. PREF RIGHTS; CONSENTS; CASUALTIES
	  	 	14	  
			
	 Section 4.01
	  	 Preferential Rights and Third Party Consents
	  	 	14	  
			
	 Section 4.02
	  	 Casualty or Condemnation Loss
	  	 	15	  
		
	 ARTICLE V. REPRESENTATIONS AND WARRANTIES
	  	 	15	  
			
	 Section 5.01
	  	 Representations and Warranties of Sellers
	  	 	15	  
			
	 Section 5.02
	  	 Representations and Warranties of Buyer
	  	 	21	  
		
	 ARTICLE VI. CERTAIN COVENANTS
	  	 	23	  
			
	 Section 6.01
	  	 Access
	  	 	23	  
			
	 Section 6.02
	  	 Confidentiality
	  	 	23	  
			
	 Section 6.03
	  	 Conduct of Operations
	  	 	24	  
			
	 Section 6.04
	  	 Bonds
	  	 	24	  
			
	 Section 6.05
	  	 Payment of Expenses
	  	 	24	  
			
	 Section 6.06
	  	 Restrictions on Certain Actions
	  	 	25	  
			
	 Section 6.07
	  	 Commercially Reasonable Efforts
	  	 	25	  
			
	 Section 6.08
	  	 Bankruptcy Actions
	  	 	26	  
			
	 Section 6.09
	  	 Notice of Litigation
	  	 	26	  
			
	 Section 6.10
	  	 Notice of Certain Matters
	  	 	26	  
			
	 Section 6.11
	  	 Taxes
	  	 	26	  
			
	 Section 6.12
	  	 Amendment of Exhibits and Schedules
	  	 	28	  
			
	 Section 6.13
	  	 Dispositions of Assets
	  	 	28	  
			
	 Section 6.14
	  	 Buyer Indemnification
	  	 	28	  

  
 i 

							
		
	 ARTICLE VII. BANKRUPTCY MATTERS
		 	28	  
			
	 Section 7.01
		 Auction and Bidding
		 	28	  
			
	 Section 7.02
		 Certain Contract Matters
		 	29	  
			
	 Section 7.03
		 Appeal
		 	29	  
		
	 ARTICLE VIII. CONDITIONS TO CLOSING
		 	29	  
			
	 Section 8.01
		 Conditions to Sellers’ Obligations
		 	29	  
			
	 Section 8.02
		 Conditions to Buyer’s Obligations
		 	30	  
			
	 Section 8.03
		 Conditions to the Parties’ Obligations
		 	31	  
			
	 Section 8.04
		 Closing Over Breaches or Unsatisfied Conditions
		 	31	  
			
	 Section 8.05
		 Frustration of Closing Conditions
		 	31	  
		
	 ARTICLE IX. CLOSING
		 	31	  
			
	 Section 9.01
		 Time and Place of Closing
		 	31	  
			
	 Section 9.02
		 Closing Statement; Adjustments to Purchase Price at Closing
		 	31	  
			
	 Section 9.03
		 Actions of Sellers at Closing
		 	33	  
			
	 Section 9.04
		 Actions of Buyer at Closing
		 	33	  
		
	 ARTICLE X. CERTAIN POST-CLOSING OBLIGATIONS
		 	34	  
			
	 Section 10.01
		 Operation of the Assets After Closing
		 	34	  
			
	 Section 10.02
		 Files
		 	34	  
			
	 Section 10.03
		 Financial Records and Access to Information
		 	34	  
			
	 Section 10.04
		 Further Cooperation
		 	34	  
			
	 Section 10.05
		 Document Retention
		 	35	  
			
	 Section 10.06
		 Suspense Accounts
		 	35	  
		
	 ARTICLE XI. TERMINATION
		 	35	  
			
	 Section 11.01
		 Right of Termination
		 	35	  
			
	 Section 11.02
		 Effect of Termination; Earnest Money
		 	36	  
		
	 ARTICLE XII. ASSUMPTION AND INDEMNIFICATION
		 	37	  
			
	 Section 12.01
		 Assumption and Indemnity
		 	37	  
			
	 Section 12.02
		 Indemnification by Buyer
		 	39	  
			
	 Section 12.03
		 Buyer’s Environmental Indemnification
		 	39	  
			
	 Section 12.04
		 Negligence and Fault
		 	39	  
			
	 Section 12.05
		 Exclusive Remedy
		 	39	  
			
	 Section 12.06
		 Expenses
		 	40	  
			
	 Section 12.07
		 Survival
		 	40	  
			
	 Section 12.08
		 Non-Compensatory Damages
		 	40	  
			
	 Section 12.09
		 Indemnification Actions
		 	40	  
			
	 Section 12.10
		 Characterization of Indemnity Payments
		 	41	  

  
 ii 

							
		
	 ARTICLE XIII. DISCLAIMERS OF REPRESENTATIONS AND WARRANTIES
		 	41	  
		
	 ARTICLE XIV. MISCELLANEOUS
		 	43	  
			
	 Section 14.01
		 Filings, Notices and Certain Governmental Approvals
		 	43	  
			
	 Section 14.02
		 Entire Agreement
		 	43	  
			
	 Section 14.03
		 Waiver
		 	43	  
			
	 Section 14.04
		 Publicity
		 	44	  
			
	 Section 14.05
		 No Third Party Beneficiaries
		 	44	  
			
	 Section 14.06
		 Assignment
		 	44	  
			
	 Section 14.07
		 GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL
		 	44	  
			
	 Section 14.08
		 Notices
		 	44	  
			
	 Section 14.09
		 Severability
		 	45	  
			
	 Section 14.10
		 Counterparts
		 	46	  
			
	 Section 14.11
		 Approval of the Bankruptcy Court
		 	46	  
			
	 Section 14.12
		 Amendment
		 	46	  
			
	 Section 14.13
		 Schedules and Exhibits
		 	46	  
			
	 Section 14.14
		 Time of the Essence
		 	46	  
			
	 Section 14.15
		 Buyer Exclusion Rights
		 	46	  

 EXHIBITS 
  

					
	Exhibit A		Part 1		Leases, Easements, Rights-of-Way, Surface Fees and Surface Leases
	Exhibit A		Part 2		Wells
	Exhibit A		Part 3		Allocated Values by Field and Wells
	Exhibit A		Part 4		Office Equipment and Furniture
	Exhibit A		Part 5		Contracts
	Exhibit A		Part 6		Vehicles, Boats, Etc.
	Exhibit B		–		Excluded Assets
	Exhibit C		–		Form of Assignment
	Exhibit D		–		Intentionally Deleted
	Exhibit E		–		Certificate of Non-Foreign Status
	Exhibit F		–		Proof of Buyer Qualification

 SCHEDULES 
  

					
	Schedule 1.01(a)		–		Knowledge
	Schedule 1.01(b)		–		Specific Liens
	Schedule 5.01(c)		–		Consents
	Schedule 5.01(f)		–		Litigation
	Schedule 5.01(h)		–		Taxes
	Schedule 5.01(k)		–		Environmental Notices

  
 iii 

					
	Schedule 5.01(l)		–		Compliance with Laws
	Schedule 5.01(m)		–		Preferential Purchase Rights
	Schedule 5.01(p)		–		Wells
	Schedule 5.01(q)		–		Commitments, Abandonments or Proposals
	Schedule 5.01(r)		–		Plugging and Abandonment
	Schedule 5.01(s)		–		Intellectual Property
	Schedule 5.01(t)		–		Basic Documents
	Schedule 5.01(w)		–		Suspense Accounts
	Schedule 5.01(dd)		–		Non-Consent Operations
	Schedule 5.01(gg)		–		Material Contracts
	Schedule 6.01		–		Access
	Schedule 6.04				Third Party Bonds

  
 iv 

 PURCHASE AND SALE AGREEMENT 

This Purchase and Sale Agreement (this “Agreement”) is made and entered into this 19th day of June, 2015 (the
“Execution Date”), by and between Dune Energy, Inc., a Delaware corporation, Dune Operating Company, a Texas corporation, and Dune Properties, Inc., a Texas corporation (each a “Seller” and
collectively “Sellers”), and White Marlin Oil and Gas Company, LLC, a Delaware limited liability company (“Buyer”). Buyer and Sellers are sometimes referred to herein, collectively, as the
“Parties” and, individually, as a “Party.” 
 W I T N E S S E T H: 

WHEREAS, on March 8, 2015, each Seller filed a voluntary petition for relief (as jointly administered, the “Bankruptcy
Case”) under the Bankruptcy Reform Act of 1978, as codified in title 11 of the United States Code, 11 U.S.C. §§ 101 through 1532, as may have been or are amended from time to time (the “Bankruptcy Code”) before
the United States Bankruptcy Court for the Western District of Texas under Case #15-10336-HCM (the “Bankruptcy Court”); 

WHEREAS, Sellers, as debtors and debtors-in-possession, have continued in the possession of the Assets (as defined hereinafter) and the
management of its business pursuant to Sections 1107 and 1108 of the Bankruptcy Code; 
 WHEREAS, Sellers, subject to the
receipt of any higher or better offer received by it in accordance with the Bankruptcy Court’s bidding procedures order, desire to sell and assign, and Buyer desires to purchase and acquire, all of Sellers’ right, title and interest in, to
and under the Assets effective as of the Effective Time (as defined hereinafter); 
 WHEREAS, Buyer attaches as Exhibit
F hereto evidence that it is willing, authorized, capable and qualified financially, operationally, legally and otherwise, of unconditionally performing all obligations under this Agreement; and  

WHEREAS, the transactions contemplated hereunder are subject to the authorization and approval of the Bankruptcy Court. 

NOW, THEREFORE, in consideration of the premises and of the mutual promises, representations, warranties, covenants, conditions and
agreements contained herein, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged by each Party, the Parties agree as follows: 

ARTICLE I. DEFINITIONS 

Section 1.01 Defined Terms. As used in this Agreement, the following terms shall have the meanings set forth below:

 “Adjusted Purchase Price” shall have the meaning given that term in Section 3.01. 

“Advisors” shall have the meaning given that term in Section 6.02. 

“Affiliate” shall mean any Person that, directly or indirectly, through one or more entities, controls, is controlled
by or is under common control with the Person specified. For the purpose of the immediately preceding sentence, the term “control” and its syntactical variants mean the power, direct or indirect, to direct or cause the direction of the
management of such Person, whether through the ownership of voting securities, by contract, agency or otherwise. 

  
 1 

 “Agreement” shall have the meaning given that term in the preamble.

 “Allocated Value” shall have the meaning given that term in Section 3.03. 

“Alternative Transaction” has the meaning given that term in Section 11.01(e). 

“Assets” shall have the meaning given that term in Section 2.02. 

“Assignments” shall have the meaning given that term in Section 9.03(a). 

“Assumed Obligations” shall have the meaning given that term in Section 12.01. 

“Auction” shall have the meaning given that term in Section 7.01(a). 

“Backup Successful Bidder” shall have the meaning given that term in the Bidding Procedures. 

“Bankruptcy Case” shall have the meaning given that term in the Recitals. 

“Bankruptcy Code” shall have the meaning given that term in the Recitals. 

“Bankruptcy Court” shall have the meaning given that term in the Recitals. 

“Bid” shall have the meaning given that term in the Bidding Procedures. 

“Bidding Procedures” shall have the meaning given that term in the Bidding Procedures Order. 

“Bidding Procedures Order” shall mean the Order (A) Approving Sale and Bidding Procedures in Connection with Sale of
Assets of the Debtors, (B) Approving Form and Manner of Notice, (C) Scheduling Auction and Sale Hearing, (D) Authorizing Procedures Governing Assumption and Assignment of Certain Executory Contracts and Unexpired Leases, and
(E) Granting Related Relief, to be entered by the Bankruptcy Court. 
 “Business Day” shall mean any day other
than a Saturday, a Sunday or a day on which banks in Houston, Texas are authorized or obligated by Law to close. 

“Buyer” shall have the meaning given that term in the preamble. 

“Buyer Affiliates” shall mean Buyer and its members, partners, shareholders and Affiliates, and the officers, board of
directors and/or managers, employees, agents and representatives of all of the foregoing Persons. 
 “Claim”
shall have the meaning given that term in Section 12.09(b). 
 “Claim Notice” shall have the meaning
given that term in Section 12.09(b). 
 “Closing” shall have the meaning given that term in Section
9.01. 
 “Closing Date” shall have the meaning given that term in Section 9.01. 

  
 2 

 “Closing Statement” shall have the meaning given that term in Section
9.02. 
 “Code” shall mean the Internal Revenue Code of 1986, as amended and any successor statute
thereto. 
 “Commercially Reasonable Efforts” shall mean a Party’s reasonable commercial efforts in
accordance with reasonable commercial practice. 
 “Consent” shall have the meaning given that term in
Section 5.01(c). 
 “Contract Cure Amount” shall mean, with respect to any Contract, the amounts
required to be paid, if any, in connection with the assumption and assignment of such Contract pursuant to Section 365 of the Bankruptcy Code.  

“Contracts” shall have the meaning given that term in Section 2.02(g).  

“Dispute Notice” shall have the meaning given that term in Section 9.02(c). 

“Earnest Money” shall mean an amount equal to ten percent (10.0%) of the Purchase Price, deposited by Buyer into
the Escrow Account and not refundable to Buyer unless explicitly provided in Article XI. 
 “Effective
Time” shall mean 7:00 a.m. Houston, Texas time on July 1, 2015. 
 “Environmental Laws” shall
mean applicable federal, state and local Laws (in each case, as the same have been amended prior to the date of this Agreement) pertaining to the environment (including natural resources), the prevention of pollution, the remediation of
contamination, or the restoration of environmental, including the Clean Air Act, the Clean Water Act, the Comprehensive Environmental, Response, Compensation, and Liability Act of 1980, the Superfund Amendments and Reauthorization Act of 1986, the
Occupational Safety and Health Act of 1970, the Resource Conservation and Recovery Act of 1976, the Safe Drinking Water Act, the Toxic Substances Control Act and the Oil Pollution Act of 1990. 

“Escrow Account” means the following special account established by the Escrow Agent pursuant to the Sale and Bidding
Procedures Order dated April 8, 2015 in the Bankruptcy Case, and maintained by Escrow Agent for the benefit of the Parties pursuant to this Agreement:  

BMO Harris Bank, 
 Chicago, IL

 ABA 0710-0028-8 
 Credit Dune
Operating Company 
 Account #237-242-3. 

“Escrow Agent” means BMO Harris Bank in Chicago, Illinois. 

“Execution Date” shall mean the date of this Agreement. 

“Excluded Assets” shall have the meaning given that term in Section 2.03. 

“Facilities” shall have the meaning given that term in Section 2.02(c). 

  
 3 

 “Files” shall have the meaning given that term in Section
2.02(i). 
 “Final Accounting Statement” shall have the meaning given that term in Section
9.02(c). 
 “Final Order” shall mean an order of the Bankruptcy Court as to which the time to appeal has
expired and as to which no appeal, petition for certiorari, or other proceedings for reconsideration shall then be pending. 

“Financial Records” shall mean, to the extent in Sellers’ possession, all available financial information
relating to the Assets for the last two years, including, but not be limited to, all general ledgers, journals, revenue logs, operating reports, invoices and any other underlying supporting documents that may be needed to prepare audited and
proforma financial statements of the Assets as a result of this transaction. 
 “GAAP” shall mean generally
accepted accounting principles in the United States of America as in effect from time to time. 
 “Goldking Escrow
Account” shall mean that certain escrow account at U.S. Bank, National Association, Account No. 7572003035, in the approximate current amount of $2,252,450.00, which was initially styled “Goldking/EnerVest Bonding Fund” and
established in 2005 by Goldking Energy Corporation (“Goldking”), Chevron U.S.A. Inc. (“Chevron”), and EnerVest Energy, L.P. (“EnerVest”) pursuant to the Goldking Escrow Agreement.  

“Goldking Escrow Agreement” shall mean that certain escrow agreement, dated as of October 31, 2005, by and
between Goldking, Chevron, EnerVest, and Wachovia Bank, National Association, for the purpose of assuring that certain plugging and abandonment obligations would be performed, and in which Goldking subsequently assigned its interest, in 2007, to
Sellers. 
 “Governmental Authority” shall mean any federal, state, local or foreign government or any court
of competent jurisdiction, regulatory or administrative agency, commission or other governmental authority that exercises jurisdiction over any of the Assets. 

“Hazardous Substances” shall mean any substance defined or regulated as a “hazardous substance” or
“hazardous waste” under or otherwise regulated by any Environmental Laws.  
 “Hedge” shall mean
any future derivative, swap, collar, put, call, cap, option or other contract that is intended to benefit from, relate to, reduce or eliminate the risk of fluctuations in interest rates, basis risk or the price of commodities, including
Hydrocarbons. 
 “Hydrocarbons” shall mean oil and gas and other hydrocarbons produced or processed in
association therewith. 
 “Imbalance” shall mean any imbalance at the wellhead between the amount of
Hydrocarbons produced from a Well and allocable to the interests of Sellers therein and the shares of production from the relevant Well to which Sellers are entitled, together with any appurtenant rights and obligations concerning future in kind
and/or cash balancing at the wellhead. 
 “Income Taxes” shall mean any income, capital gains, franchise and
similar Taxes. 
 “Indemnitee” shall have the meaning given that term in Section 12.09(a). 

  
 4 

 “Interim Period” shall mean that period commencing on the date of the
execution of this Agreement and terminating upon the earlier of the Closing or the termination of this Agreement. 

“Knowledge” shall mean, with respect to Sellers and Buyer, the actual knowledge of the Persons listed on Schedule
1.01(a) hereto. 
 “Law” shall mean any applicable statute, law, rule, regulation, ordinance, order,
code, ruling, writ, injunction, decree or other official act of or by any Governmental Authority. 
 “Lands”
shall mean any and all lands (a) covered by Leases and/or Units, (ii) lands on which the Wells specified on Exhibit A - Part 2 are located, and/or (iii) lands pooled with any lands described in items (i) or (ii).

 “Leases” shall have the meaning given that term in Section 2.02(a). 

“Liabilities” shall mean, except as provided in Section 12.08, any and all claims, causes of action,
payments, charges, judgments, assessments, liabilities, losses, damages, penalties, fines or costs and expenses, including any attorneys’ fees, legal or other expenses incurred in connection therewith and including liabilities, costs, losses
and damages for personal injury or death or property damage or environmental damage or remediation. 

“Liens” shall mean any mortgage, lien, security interest or other charge or encumbrance, or any financing lease having
substantially the same economic effect as any of the foregoing. 
 “Material Adverse Effect” shall mean
(a) any change, effect, state of facts, occurrence, event or circumstance that has had or would reasonably be expected, either individually or in the aggregate, with or without notice, lapse of time or both, to have a material adverse effect on
the use, ownership or operation of any of the Assets, taken as a whole and as currently used, owned or operated as of the date of this Agreement, or (b) any change, effect, state of facts, occurrence, event or circumstance that prevents or
materially impedes the consummation by Sellers of the transactions contemplated by this Agreement; provided, however, that no change, effect, state of facts, occurrence, event or circumstance, individually or in the aggregate, that arises or results
from the following shall be deemed to constitute or be considered in determining whether a Material Adverse Effect has occurred: (i) changes in general economic, capital market, regulatory or political conditions or changes in applicable Law or
the interpretation thereof that, in any case, do not materially disproportionately affect the Assets in any area or areas where the Assets are located as compared to similarly situated properties; (ii) changes that affect generally the oil and
gas industry in any area or areas where the Assets are located that, in any case, do not materially disproportionately affect the Assets as compared to similarly situated properties; (iii) the declaration by the United States of a national
emergency or acts of war or terrorism or acts of God that, in any case, do not materially disproportionately affect the Assets; (iv) the entry into or announcement of the transactions contemplated by this Agreement, or the consummation of the
transactions contemplated hereby; (v) changes in Law or GAAP; (vi) any changes in commodity prices, including any Hydrocarbons or other commodities relating to the business of Sellers or the Assets; (vii) any action or omission of
Buyer; (viii) changes relating to or arising from (A) the filing, pendency or conduct of the Bankruptcy Case, (B) any orders of the Bankruptcy Court or (C) the fact that Sellers are operating as a debtors-in-possession under the
Bankruptcy Code; or (ix) any action or omission of any Seller taken in accordance with the terms of this Agreement without the violation thereof or with the prior written consent of Buyer.  

  
 5 

 “Material Contract” shall mean the following (excluding any Leases) to
the extent relating to the Assets and that would be binding upon Buyer after the consummation of the transactions contemplated hereby: 

(a) any Contract that (i) can reasonably be expected to result in aggregate payments by Sellers of more than Twenty-Five
Thousand Dollars ($25,000.00) during the current or any subsequent fiscal year (based solely on the terms thereof and without regard to any expected increase in volumes or revenues) and (ii) cannot be terminated without penalty on thirty
(30) days or less notice; 
 (b) any Contract that can reasonably be expected to result in aggregate revenues to Sellers
of more than Twenty-Five Thousand Dollars ($25,000.00) during the current or any subsequent fiscal year (based solely on the terms thereof and without regard to any expected increase in volumes or revenues); 

(c) any purchase and sale, transportation, processing, refining or similar Contract (in each case) to which any Seller is a
party or to which the Assets are subject to that is not terminable without penalty on thirty (30) days or less notice; 

(d) any indenture, mortgage, loan, note, credit, sale-leaseback or similar Contract (in each case) to which any of the Assets
are subject and all related security agreements or similar agreements associated therewith, unless such Assets are to be released from such Contracts on or before the Closing; and 

(e) any Contract between an Affiliate of Sellers, on the one hand, and any Seller individually or Sellers collectively, on the
other hand, that would be binding upon Buyer following Closing and will not be terminated on or prior to Closing. 

“Net Revenue Interest” or “NRI” shall mean the percentage
or decimal share or interest in and to all production of oil, gas and other minerals produced, saved, and marketed from any Well after giving effect to all valid lessor’s royalties, overriding royalties, nonparticipating royalties, production
payments, carried interests, liens and other encumbrances or charges against production therefrom. 

“NORM” shall have the meaning given that term in Section 5.02(k). 

“Operating Expenses” means all operating expenses (including costs of insurance and Production Taxes) and capital
expenditures incurred in the ownership, operation or maintenance of the Assets and, where applicable, in accordance with the relevant operating or unit agreement, if any, and Overhead Costs charged or attributable to the Assets, but excluding
(a) Liabilities for personal injury or death, property damage or violation of any Law, (b) obligations to plug Wells, dismantle Facilities, close pits or restore the surface around such Wells, Facilities and pits, (c) environmental
Liabilities, including obligations to remediate any contamination of groundwater, surface water, soil, sediments, Facilities or personal property under applicable Environmental Laws, (d) obligations with respect to Imbalances,
(e) obligations to pay working interests, royalties, overriding royalties or other interest owners revenues or proceeds attributable to sales of Hydrocarbons relating to the Properties, including those held in suspense, and (f) general and
administrative expenses not directly allocable to a Well. 
 “Outside Date” shall mean July 24, 2015.
 
 “Overhead Costs” shall mean, with respect to each Well, (a) the overhead amount under the joint
operating agreement applicable to such Well that would be attributable to Sellers’ interest therein for the period of time from and after the Effective Time up to (and including) the Closing Date, or (b) if no such joint operating
agreement is in existence with respect to any actively producing Well, then the amount obtained by multiplying (i) Thirty Three and no/100 Dollars ($33.00) per day for such actively producing Well by (ii) the number of days elapsing from
and after the Effective Time up to (and including) the Closing Date. 

  
 6 

 “Parties” shall have the meaning given that term in the preamble.

 “Permitted Encumbrances” shall mean:  

(i) Liens for Taxes which are not yet due or delinquent; 

(ii) normal and customary Liens of co-owners under (i) joint operating agreements, (ii) unitization agreements, and
(iii) pooling orders relating to the Properties, for obligations that are not yet due and pursuant to which Sellers are not in default; 

(iii) mechanic’s and materialman’s liens relating to the Properties, for obligations that are not yet due and pursuant to which
Sellers are not in default; 
 (iv) all approvals required to be obtained from Governmental Authorities that are lessors under Leases
forming a part of the Properties (or who administer such Leases on behalf of such lessors) which are customarily obtained post-closing; 

(vi) Preferential Purchase Rights and consent to transfer requirements of any Person to the extent same have been complied with in connection
with the prior sale, assignment or the transfer of a Property and are not triggered by the consummation of the transactions covered by this Agreement; 

(vii) conventional rights of reassignment normally actuated by an intent to abandon or release a Lease and requiring notice to the holders of
such rights; and 
 (viii) the specific Liens described in Schedule 1.01(b). 

“Permits” shall mean licenses, permits, franchises, consents, approvals, variances, exemptions, and other
authorizations of or from Governmental Authorities. 
 “Person” shall mean an individual, corporation,
partnership, association, trust, limited liability company or any other entity or organization, including government or political subdivisions or an agency, unit or instrumentality thereof. 

“Petition Date” shall have the meaning given that term in the Bidding Procedures Order. 

“Preferential Purchase Right” shall have the meaning given that term in Section 4.01. 

“Production Taxes” means ad valorem, property, severance, production and similar Taxes based upon or measured by the
ownership or operation of the Assets or the production of Hydrocarbons therefrom, but excluding, for the avoidance of doubt, (a) Income Taxes and (b) Transfer Taxes. 

“Properties” shall have the meaning given that term in Section 2.02(b). 

“Purchase Price” shall have the meaning given that term in Section 3.01. 

“Purchase Price Allocation” shall have the meaning given that term in Section 3.03. 

“Qualified Bidder” shall have the meaning given that term in the Bidding Procedures. 

  
 7 

 “Royalties” shall have the meaning given that term in Section
5.01(i). 
 “Sale Order” is an order of the Bankruptcy Court, acceptable to Sellers and Buyer, entered pursuant
to Sections 105, 363, and 365 of the Bankruptcy Code (a) approving this Agreement and the transactions contemplated hereby; (b) approving (1) the sale and transfer of the Assets to Buyer free and clear of all Liens, claims and
interests (other than Liens created by Buyer), pursuant to Section 363(f) of the Bankruptcy Code, and (2) payment of proceeds to the holders of the Liens, on the Assets (c) approving the assumption and assignment to Buyer of the
Contracts; (d) finding that Buyer is a good-faith purchaser entitled to the protections of Section 363(m) of the Bankruptcy Code; (e) finding that due and adequate notice of the motion to enter the Sale Order and an opportunity to be
heard were provided to all Persons entitled thereto, including but not limited to federal, state and local taxing and regulatory authorities; (f) finding that Buyer is a good faith purchaser able to acquire the Assets free of all unrecorded
interests related to the Assets to the same extent as a holder of a Lien on the Asset; (g) confirming that Buyer is acquiring the Assets free and clear of all Liabilities, other than the Assumed Obligations; (h) confirming that Buyer is
acquiring the Assets free and clear of the liabilities related to assets that are not Assets purchased by the Buyer; and (i) providing that the provisions of Federal Rules of Bankruptcy Procedure 6004(h) and 6006(d) are waived and there will be
no stay of execution of the Sale Order under Rule 62(a) of the Federal Rules of Civil Procedure; and (j) confirming that Buyer can require the cooperation of Sellers, and the derivative standing to sue and enforce Sellers, standing of Sellers
to minimize cure obligations, and all of Sellers’ pre-petition environmental, tax and other claims, related to the Assets. 

“Seller” or “Sellers” shall have the meaning given that term in the preamble. 

“Sellers Indemnitees” shall mean each Seller and its respective members, partners, shareholders, Affiliates,
successors and assigns, and the officers, board of directors and/or managers, employees, agents, and representatives of all of the foregoing Persons. 

“Successful Bidder” shall have the meaning given that term in the Bidding Procedures. 

“Tax Returns” shall mean any report, return, information statement, payee statement or other information required to
be provided to any Governmental Authority with respect to Taxes or any schedule or attachment thereto or any amendment thereof, including any return of an affiliated, combined or unitary group, and any and all work papers relating to any Tax
Return. 
 “Taxes” means any taxes, assessments and other governmental charges imposed by any Governmental
Authority, including net income, gross income, profits, gross receipts, license, employment, stamp, occupation, premium, alternative or add-on minimum, ad valorem, real property, personal property, transfer, real property transfer, value added,
sales, use, environmental (including taxes under Code Section 59A), customs, duties, capital stock, franchise, excise, withholding, social security (or similar), unemployment, disability, payroll, fuel, excess profits, windfall profit,
severance, estimated or other tax, including any interest, penalty or addition thereto, whether disputed or not, and any reasonable expenses incurred in connection with the determination, settlement or litigation of the Tax liability. 

“Third Party” shall mean any Person other than a Party to this Agreement. 

“Transfer Taxes” shall have the meaning given that term in Section 6.11(e). 

“Unit” shall have the meaning given that term in Section 2.02(a). 

“Wells” shall have the meaning given that term in Section 2.02(b). 

  
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 “Working Interest” or “WI” shall mean, with respect to a
Well, the share of the costs, expenses, burdens, and obligations of any type or nature attributable to such Well, expressed as a percentage or decimal. 

Section 1.02 Interpretation. As used in this Agreement, unless the context otherwise requires, the term “includes” and
its syntactical variants means “includes but is not limited to.” The headings and captions contained in this Agreement have been inserted for convenience only and shall not be deemed in any manner to modify, explain, enlarge or restrict
any of the provisions hereof. Preparation of this Agreement has been a joint effort of the Parties and the resulting document shall not be construed more severely against one of the Parties than against the other. All references herein to
“Sections” and “Articles” in this Agreement shall refer to the corresponding section and article of this Agreement unless specific reference is made to such sections of another document or instrument. The words
“hereof,” “herein” and “hereunder” and words of similar import when used in any agreement or instrument shall refer to such agreement or instrument as a whole and not to any particular provision of such agreement or
instrument. Pronouns in masculine, feminine, and neuter genders will be construed to include any other gender, and words in singular form will be construed to include the plural and vice versa, unless the context otherwise requires. The Exhibits and
Schedules identified in this Agreement are incorporated herein by reference and made a part hereof. 
 ARTICLE II. ASSETS 

Section 2.01 Agreement to Sell and Purchase. Pursuant to Section 363 and 365 of the Bankruptcy Code, for the consideration
hereinafter set forth and subject to the terms and conditions of this Agreement, Buyer agrees to purchase from Sellers, and Sellers agree to sell to Buyer, all of Sellers’ right, title and interest in and to the Assets. Buyer agrees to be bound
by the terms of the Bidding Procedures and the Bidding Procedures Order and shall (i) commence and complete all filings with respect to necessary government and other approvals within three (3) days following the entry of the Sale Order
with respect to the relevant Assets and (ii) consummate the purchase of the Assets within ten (10) days following the entry of the Sale Order. 

Section 2.02 Assets. The term “Assets” shall mean, less and except the Excluded Assets, the WI and NRI in the
Wells set forth in Exhibit A-Part 2, and in addition thereto, all of Sellers’ right, title and interest in, to, under, or derived from: 

(a) (i) the oil and gas leases described in Exhibit A – Part 1 (collectively, the “Leases”), 

(ii) all presently existing and valid oil, gas or mineral unitization, pooling, or communitization agreements, declarations
and/or orders and in and to the properties covered and the units created thereby (including all units formed under orders, rules, regulations, or other official acts of any federal, state, or other authority having jurisdiction, voluntary
unitization agreements, designations and/or declarations) relating to the Wells or Leases (collectively, the “Units”), and 

(iii) the oil, gas and other minerals in, to and under, or that may be produced from, and the mineral rights in and to, the
Lands (including mineral servitudes, mineral royalty interests, executive rights, interests in the oil, gas and mineral leases covering the Lands and the wells located on the Lands or on lands pooled or unitized therewith, overriding royalties,
carried, back-in, farmout, farmin, reversionary interests, production payments and net profits interests in such lands or such oil, gas and mineral leases, and fee mineral interests, fee royalty interests and other interests in such oil, gas and
other minerals), whether such lands are described in a 

  
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description set forth in such Exhibit A-Parts 1 or 2, or are described in such Exhibit A-Parts 1 or 2 by reference to another instrument (and without limitation by any
depth limitations that may be set forth in such Exhibit A-Parts 1 or 2, or in any such instrument so referred to for description), and even though Sellers’ interest in such oil, gas and other minerals may be incorrectly described
in, or omitted from, such Exhibit A-Parts 1 or 2; 
 (b) all wells located on the Lands, or attributable to the
Leases or Units, whether producing or non-producing, including the wells set forth on Exhibit A-Part 2 (collectively, the “Wells”, and the Leases, the Units, Lands and the Wells being collectively referred to herein as the
“Properties”); 
 (c) all materials, supplies, machinery, equipment, improvements, structures, tubular
goods, inventory, and other personal property and fixtures, including all oil and gas wells, water wells, saltwater disposal wells and related facilities, and other wells, wellhead equipment, pumping units, flowlines, tanks, buildings, injection
facilities, saltwater disposal facilities, compression facilities, gathering systems, production facilities, structures, tubular goods, lease equipment, production equipment, pipelines, fixtures, platforms, facilities, surplus equipment, and other
equipment, whether or not currently in use or in operating or usable condition, to the extent appurtenant to or used in connection with the Properties (collectively, the “Facilities”); 

(d) to the extent assignable (1) at no cost to Sellers, or (2) upon Buyer’s voluntary payment of any applicable
cost or expense, all Permits, licenses, servitudes, easements, rights-of-way, canal use agreements, surface fee interests, surface leaseholds, and other surface use agreements, saltwater disposal leases and all saltwater disposal wells and
facilities located on such saltwater disposal leases, to the extent used in connection with the ownership or operation of the Properties or the Facilities, including those described in Exhibit A-Part 1; 

(e) all field offices and buildings located on the Lands, and all computers, furniture and other personal property located
(i) within such field offices or buildings, or (ii) on the Lands or used in connection with the ownership or operation of the Properties or Facilities, or relating to the other items described in (d) above, or
(f) through (n) below, including those described in Exhibit A–Part 4; 
 (f) the
Hydrocarbons produced from or attributable to the Properties from and after the Effective Time and all Hydrocarbons produced therefrom prior to the Effective Time that are (i) in storage to the bottom of the flange prior to sale,
(ii) upstream of the sales metering point as of the Closing Date, or (iii) attributable to Imbalances; 
 (g) to
the extent assignable (1) at no cost to Sellers, or (2) upon Buyer’s voluntary payment of any applicable cost or expense, all contracts, real property leases, equipment leases, and agreements listed in Exhibit A–Part 5
limited to the extent attributable to or used in connection with those Assets described in preceding clauses (a) through (f), and in the following clauses (h) through (n) (collectively, the “Contracts”); 

(h) all Imbalances relating to the Properties; 

(i) all lease files, title files, abstracts and title opinions, division order files, unitization files, contract files, land
surveys and maps (including those in electronic or digital format), data sheets, land and mineral owner correspondence, joint operating agreement files, environmental and regulatory files and reports, operational files and engineering, production
records, well files, accounting records relating directly to the Properties (but not including general 

  
 10 

 
financial and accounting records), gravity maps, electric logs, paleontological, geochemical and technical files, regional trend studies, analyses, interpretations, and other files, documents and
records (including data and records in electronic or digital format) of every kind and description, and all other records and files comprised of Contracts, orders, agreements, Permits, licenses, easements, maps, data, schedules, reports, logs and
data systems (electronic, digital and otherwise), relating to the Properties, or relating to the other items described in (d) through (h) above, and (j) through (n) below, and which are owned,
controlled or held by Sellers (collectively, the “Files”); 
 (j) all vehicles, marine vessels, boats, and
other personal property described in Exhibit A–Part 6; 
 (k) subject to the consent of all parties to the
Goldking Escrow Agreement, or an order of the Bankruptcy Court that no such consent is necessary, that prorated portion of the Goldking Escrow Account applicable to the Assets; 

(l) except to the extent they are not assignable notwithstanding the provisions of the Bankruptcy Code and which Sellers may
convey to Buyer (1) without cost or expense to Sellers, or (2) at Buyer’s voluntary payment of any applicable cost or expense, intellectual property, and all valid seismic licenses and other licenses, patents, copyrights, trademarks,
software, databases, geological data, geophysical data, engineering data, maps, interpretations and other technical information owned, controlled or held by Sellers and which relate to the Properties or Facilities, or relate to the other items
described in (d) through (k) above, including those described in Schedule 5.01(s); 
 (m)
without limitation of Section 2.02(k), except to the extent they are not assignable notwithstanding the provisions of the Bankruptcy Code, all of Sellers’ right, title and interest in all guarantees, comfort letters, bonds, escrow
accounts, letters of credit (other than any letter of credit issued by Bank of Montreal in favor of Sellers), support agreement, sureties and surety bonds, and other credit support and any cash or cash equivalents or other security or collateral
which (i) relate to the plugging and abandonment of any wells located on the Lands or lands pooled therewith or decommissioning and/or environmental Liabilities pertaining to the Assets, and (ii) were not originally provided therefor by
Sellers or Sellers’ Affiliates; 
 (n) all of Sellers’ rights, claims, and causes of actions, asserted or
unasserted, contingent or fixed, known or unknown, relating to, arising from, or in connection with, any interest affecting any of the Wells, Leases, Units or Lands, or the Assumed Obligations (including claims of contribution or indemnity for
environmental Liabilities). 
 Section 2.03 Excluded and Reserved Assets. The Assets shall not include, and there is excepted,
reserved and excluded from the purchase and sale contemplated hereby, the Excluded Assets. The “Excluded Assets” shall mean: 

(a) any trade credits, accounts receivable, proceeds or revenues attributable to the Assets and accruing prior to the Effective
Time, except those attributable to Imbalances; 
 (b) all Hydrocarbons produced from or attributable to the Properties with
respect to any periods of time prior to the Effective Time that are not (i) in storage to the bottom of the flange prior to sale and (ii) upstream of the sales metering point as of the Closing Date, and/or (iii) subject to the
Imbalances, and all proceeds attributable thereto; 

  
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 (c) except as provided in Section 6.11(b), all refunds of costs,
Production Taxes or expenses attributable to any periods of time prior to the Effective Time, and all refunds, credits, net operating losses and similar Tax assets attributable to Income Taxes imposed on Sellers, their Affiliates and/or their direct
and indirect owners; 
 (d) all proceeds from the settlements of Hydrocarbon production purchase and sales contract disputes
with purchasers of Hydrocarbons from or attributable to the Properties, insofar as said proceeds are attributable to any periods of time prior to the Effective Time; 

(e) except for that portion of the Goldking Escrow Account included in the Assets pursuant to Section 2.02(k), all
guarantees, letters of credit, comfort letters, surety bonds, support agreements and other credit support and any cash or cash equivalents or other security or collateral that were delivered by, or issued by, Sellers or Sellers’ Affiliates in
support of the obligations of Sellers with respect to the Assets; 
 (f) subject to Section 4.02, all rights,
titles, claims and interests of Sellers or their Affiliates under any insurance policy or agreement, to any insurance proceeds or to or under any bond or bond proceeds, in each such case attributable to acts, events or occurrences prior to the
Effective Time; 
 (g) excluding the items described in Section 2.02(n), all rights, claims, and causes of
action, asserted or unasserted, contingent or fixed, known or unknown, relating to the Assets and attributable to periods of time prior to the Effective Time; 

(h) all patents, patent applications, logos, service marks, copyrights, trade names or trademarks of or associated with
Sellers, their Affiliates or their businesses; 
 (i) all privileged attorney-client (i) communications and
(ii) other documents (other than title opinions and title reports); 
 (j) all materials and information that cannot be
disclosed to Buyer as a result of confidentiality obligations to Third Parties; 
 (k) all audit rights arising under any of
the Contracts with respect to any periods of time prior to the Effective Time or to any of the Excluded Assets, except for any Imbalances; 

(l) all valuations, bidder lists, presentations and communications with marketing advisors developed or prepared in connection
with marketing the Assets; 
 (m) all amounts paid by any Person to Sellers or their Affiliates as overhead for periods of
time accruing prior to the Effective Time under any joint operating agreements burdening the Assets; 
 (n) unless listed as
a Contract on Exhibit A-Part 5, all master service agreements between any Seller and any Third Party and all rights and privileges thereunder; 

(o) all corporate, financial, income and franchise tax and litigation records that relate to Sellers’ business generally,
materials, analyses and information developed or prepared in connection with marketing the Assets and all books and records related to the Excluded Assets and copies of the Files retained by Sellers; 

  
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 (p) except (i) for the Earnest Money or any other amounts funded by Buyer
and (ii) as otherwise expressly provided in this Agreement, all cash and cash equivalents (including marketable securities and short-term investments); and 

(q) all assets listed on Exhibit B. 

Section 2.04 Revenues and Expenses. Subject to the provisions hereof, including Section 9.02(a)(iii) and
Section 12.01, Sellers shall remain entitled to all of the rights of ownership (including the right to all production, proceeds of production and other proceeds) and shall remain responsible for all Operating Expenses (in each case)
attributable to the Assets for the period of time prior to the Effective Time. Subject to the provisions hereof, from and after Closing, Buyer shall be entitled to all of the rights of ownership (including the right to all production, proceeds of
production and other proceeds) and shall be responsible for all Operating Expenses (in each case) attributable to the Assets for the period of time from and after the Effective Time. All Operating Expenses attributable to the Assets (in each case)
that are: (a) incurred with respect to operations conducted or Hydrocarbons produced prior to the Effective Time shall be paid by or allocated to Sellers and (b) incurred with respect to operations conducted or Hydrocarbons produced from
and after the Effective Time shall be paid by or allocated to Buyer. Sellers shall, upon receipt of any amounts owed to Buyer under this Section 2.04 that are not accounted for in the Final Accounting Statement, promptly deliver any such
amounts to Buyer. Buyer shall, upon its receipt of any amounts owed to Sellers under this Section 2.04 that are not accounted for in the Final Accounting Statement, promptly deliver any such amounts to Sellers. 

ARTICLE III. CONSIDERATION 

Section 3.01 Purchase Price. The consideration for the purchase, sale and assignment of the Assets by Sellers to Buyer is
Buyer’s payment to Sellers of the sum of NINETEEN MILLION DOLLARS AND 00/100 ($19,000,000.00) (the “Purchase Price”), as adjusted pursuant to Section 9.02 and less the Earnest Money (the “Adjusted Purchase
Price”). The Adjusted Purchase Price shall be paid by Buyer to Sellers at the Closing by means of a completed wire transfer in immediately available funds to the account of Sellers as designated by Sellers to Buyer in writing prior to the
Closing. 
 Section 3.02 Earnest Money. Simultaneously with the execution by Buyer of this Agreement, and submission of
same by Buyer to Seller and the Bankruptcy Court, Buyer has deposited the Earnest Money into the Escrow Account. All fees and expenses of the Escrow Account and Escrow Agent shall be borne one-half by Sellers and one-half by Buyer. The Earnest Money
shall be returned to Buyer in accordance with the Bidding Procedures Order, provided that if this Agreement is accepted and signed by Seller, and approved by the Bankruptcy Court, the Earnest Money shall be disbursed to Sellers as a portion of the
Purchase Price at the Closing, otherwise the Earnest Money shall be disbursed pursuant to and in accordance with the terms of this Agreement. 

Section 3.03 Allocated Values. Buyer and Sellers agree that the unadjusted Purchase Price is allocated among the Assets in
accordance with Section 1060 of the Code and the Treasury regulations promulgated thereunder in the amounts set forth in Exhibit A-Part 3 (the “Purchase Price Allocation”). The “Allocated Value” for any
Asset equals the portion of the Purchase Price allocated to such Asset on Exhibit A-Part 3 and such Allocated Value shall be used in calculating adjustments to the Purchase Price as provided herein. Sellers and Buyer shall use Commercially
Reasonable Efforts to update the Purchase Price Allocation in a manner consistent with the prior Purchase Price Allocation following any adjustment to the Purchase Price pursuant to this Agreement. Buyer and Sellers agree that (a) the Purchase
Price Allocation (as adjusted) shall be used by Sellers and Buyer as the basis for reporting Asset values and other items for purposes of all federal, state and local income Tax Returns, including without limitation Internal Revenue Service Form
8594, which Buyer and Sellers shall timely file with the Internal Revenue 

  
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Service and (b) neither they nor their Affiliates will take positions inconsistent with the Purchase Price Allocation or Allocated Values (as each is adjusted) in notices to Governmental
Authorities, in audit or other proceedings with respect to Taxes, in notices to holders of Preferential Purchase Rights or in other documents or notices relating to the transactions contemplated by this Agreement; provided, however, that neither
Party shall be impeded in its ability and discretion to negotiate, compromise and/or settle any Tax audit, claim or similar proceedings related to the Purchase Price Allocation provided that it gives the other Party prior written notice of its
intent to compromise or settle a Tax proceeding related to the Purchase Price Allocation. 
 ARTICLE IV. PREF RIGHTS; CONSENTS;
CASUALTIES 
 Section 4.01 Preferential Rights and Third Party Consents. 

(a) Sellers have prior to execution of this Agreement provided, or shall promptly (and in no case later than three
(3) Business Days following entry of the Sale Order by the Bankruptcy Court) give, notice to Third Parties holding any option, right of first refusal, or similar preferential purchase right burdening any of the Assets (each a
“Preferential Purchase Right”). Sellers shall use all Commercially Reasonable Efforts, but without obligation to incur any unreasonable cost or expense, to obtain waivers of, or comply with, any such Preferential Purchase Right
prior to Closing. At Buyer’s request and as permitted by Law, Sellers agree to diligently seek Bankruptcy Court orders voiding or conditioning any such rights so as to allow Buyer to acquire such Assets in accordance with this Agreement. If a
Preferential Purchase Right is exercised prior to Closing, and to the extent that the Bankruptcy Court does not void or condition such right, then at Buyer’s option, the Asset subject thereto shall become an Excluded Asset and the Purchase
Price shall be reduced by the Allocated Value thereof, and Sellers shall convey the affected Property to the holder of such right and be entitled to all amounts paid by such holder. If a Preferential Purchase Right has not been waived or voided by
the Bankruptcy Court prior to the Closing and may be exercised after Closing, unless Buyer instructs otherwise, (i) the Asset affected by such Preferential Purchase Right shall be excluded from the Closing and the Purchase Price shall be
reduced by the Allocated Value thereof, and (ii) if within sixty (60) days after the Closing such Preferential Purchase Right is not timely exercised by the holder thereof subsequent to the Closing, Sellers shall then convey to the Buyer
the affected Asset for the Allocated Value thereof; otherwise such affected Asset shall be deemed an Excluded Asset under this Agreement. Sellers agree to provide Buyer with notice of any waiver or exercise of a Preferential Purchase Right promptly
upon Sellers’ receipt of same. 
 (b) Sellers have prior to the execution of this Agreement initiated all procedures
which are reasonably required to comply with or obtain the waiver or Bankruptcy Court order voiding of all Consents set forth in Schedule 5.01(c) with respect to the transactions contemplated by this Agreement. Sellers shall use Commercially
Reasonable Efforts to obtain all such Consents; provided, however, Sellers shall not be obligated to pay any consideration to (or incur any cost or expense for the benefit of) the holder of any Consent in order to obtain such Consent. If a Consent
has not been obtained prior to the Closing, unless (i) Sellers shall have obtained from the Bankruptcy Court a judgment, court order or ruling which is binding on the Sellers and the holder of such Consent, and which is to the reasonable
satisfaction of Buyer, that such Consent that Sellers were unable to obtain is nevertheless deemed to have been given and obtained, or (ii) Buyer agrees otherwise, the Asset affected by such un-obtained Consent shall be excluded from the
Closing and the Purchase Price shall be reduced by the Allocated Value thereof, and if within sixty (60) days after the Closing such Consent is obtained, Sellers shall then convey to the Buyer the affected Asset for the Allocated Value thereof;
otherwise such affected Asset shall be deemed an Excluded Asset under this Agreement. Provided, however, and 

  
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notwithstanding anything contained to the contrary in this Agreement, the failure to obtain any Consent which Sellers have requested from the holder thereof in accordance with this Agreement and
the document containing such Consent, and such document (i) states that the consent cannot be unreasonably withheld, conditioned or delayed (or words to similar effect) and (ii) does not contain a provision stating that the failure to
obtain such consent (or any default under such document) renders either the document or the applicable transaction void (or words similar thereto), shall not be a basis for excluding the Asset affected by such un-obtained Consent from Closing.
Sellers agree to provide Buyer with notice of any obtained Consent promptly upon Sellers’ receipt of same. 
 Section 4.02
Casualty or Condemnation Loss. If, after the execution of this Agreement, but prior to the Closing Date, any portion of the Assets is destroyed by fire or other casualty or is taken in condemnation or under right of eminent domain (a
“Casualty Loss”), Buyer shall, at its election, have the right to either (A) exclude the affected Asset from the Closing (in which case it shall be deemed to be an Excluded Asset under this Agreement, and the Purchase Price
shall be reduced by the Allocated Value thereof), or (B) close on the purchase of such affected Asset in which case (subject to each Party’s rights set forth in Section 11.01(d) and Buyer, at its sole election, may elect to:
(i) reduce the Purchase Price by an amount agreed upon in writing by the Parties as being a reasonable estimate of such Casualty Loss, which amount shall not exceed the Allocated Value of the applicable Asset, (ii) agree with Sellers to
cause the Assets affected by any Casualty Loss to be repaired or restored, at Sellers’ sole cost, as promptly as reasonably practicable (which work may extend after the Closing Date only with Buyer’s prior written consent), or
(iii) have Sellers transfer to Buyer such insurance proceeds, claims, awards, and other payments arising out of such Casualty Loss; provided, however, that such amounts cover the cost of repair and restoration in full. If Buyer elects to
proceed under Section 4.02(i) and the Parties fail to agree by the Closing Date on the reduction to the Purchase Price (which agreement the Parties shall use good faith efforts to reach), Buyer shall then proceed with respect to such
Casualty Loss under either Section 4.02(ii) or Section 4.02(iii). If Buyer elects to proceed under Section 4.02(ii) and the Parties fail to agree by Closing on the terms of the agreement contemplated thereby
(which agreement the Parties shall use good faith efforts to reach), Buyer shall then proceed with respect to such Casualty Loss under either Section 4.02(i) or Section 4.02(iii). 

ARTICLE V. REPRESENTATIONS AND WARRANTIES 

Section 5.01 Representations and Warranties of Sellers. Sellers jointly and severally represent and warrant to Buyer as follows:

 (a) Organization. Dune Energy, Inc., is a corporation duly formed, validly existing and in good standing under the
Laws of the state of Delaware. Dune Operating Company is a corporation duly formed, validly existing and in good standing under the Laws of the state of Texas. Dune Properties, Inc., is a corporation duly formed, validly existing and in good
standing under the Laws of the state of Texas. 
 (b) Qualification. Each Seller is duly qualified to do business and
is in good standing in each jurisdiction in which the nature of its business as now conducted makes such qualification necessary, except where the failure to be so qualified or in good standing would not, individually or in the aggregate, have a
Material Adverse Effect. 
 (c) Authorization /Consents. The execution and delivery by Sellers of this Agreement and
the performance of its obligations hereunder have been duly and validly authorized by all requisite action by each Seller’s governing body and under its organizational documents. Other than as set forth on Schedule 5.01(c), such
authorization as is required by the 

  
 15 

 
Bankruptcy Court, and those consents of Governmental Authorities customarily obtained post-Closing or except as may otherwise be determined by the Bankruptcy Court, Sellers are not required to
(i) give any notice to, make any filing with or obtain any authorization, consent or approval from any Governmental Authority or (ii) obtain any consent from any other Third Party (in each case) in order for Sellers to consummate the
transactions contemplated by this Agreement (each, a “Consent”). 
 (d) Enforceability. Subject to
the entry of the Sale Order by the Bankruptcy Court, this Agreement has been duly executed and delivered by Sellers, and constitutes the valid and legally binding obligation of Sellers, enforceable in accordance with its terms and conditions except
insofar as the enforceability thereof may be limited by applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and by general
principles of equity, regardless of whether such principles are considered in a proceeding at Law or in equity. 
 (e)
Noncontravention. Assuming (i) the entry of the Sale Order by the Bankruptcy Court, (ii) compliance with all consent requirements and preferential rights to purchase or similar rights applicable to the transactions contemplated
hereby and (iii) the release at the Closing of the mortgages and security interests upon the Assets securing Sellers’ and/or their Affiliates’ credit facilities, neither the execution and the delivery of this Agreement, nor the
consummation of the transactions contemplated hereby by Sellers will violate or breach the terms of, cause a default under, result in acceleration of, create in any party the right to accelerate, terminate, modify or cancel or require any notice
under: (A) any applicable Law, (B) the organizational documents of Sellers, or (C) any Material Contract, other than, in the case of clauses (A) and (C), any such items that, individually or in the aggregate, would not have a
Material Adverse Effect. 
 (f) Litigation. Except for the Bankruptcy Case and the litigation described on Schedule
5.01(f), as of the date of this Agreement there are no suits, actions or litigation before or by any Governmental Authority that are pending or, to Sellers’ Knowledge, threatened against Sellers, that are attributable or related to
(i) the execution and delivery of this Agreement by Sellers or the consummation of the transactions contemplated hereunder, or (ii) Sellers’ title, ownership, use or operation of any of the Assets. 

(g) Brokers’ Fees. No broker, investment banker, financial advisor or other person is entitled to any
broker’s, finder’s, financial advisor’s or other similar fee or commission in connection with the transactions based upon arrangements made by or on behalf of Sellers, and Buyer shall not be liable for any such fee in any case. 

(h) Taxes. 

(i) With respect to the Assets: 

(A) Except as set forth in Schedule 5.01(h), all Taxes due and payable with respect to the Properties have been paid.

 (B) Except as set forth in Schedule 5.01(h), to Sellers’ Knowledge all Tax Returns relating to (or that
include) such Assets that were required to be filed on or before the date hereof by Sellers have been timely filed with the appropriate Governmental Authority, all such Tax Returns are true, correct and complete in all material respects and have
been prepared in all material respects in accordance with applicable Laws, and all Taxes (regardless of having been shown as due on any Tax Return) have been timely paid. 

  
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 (C) With respect to all Taxes (x) there is not currently in effect any
extension or waiver by Sellers of any statute of limitations of any jurisdiction regarding the assessment or collection of any such Tax related to such Assets, and (y) except as set forth in Schedule 5.01(h), there are no administrative
proceedings, audits, examinations, investigations, disputes, notices of deficiency, notices of assessment or reassessment, or lawsuits pending or threatened against such Assets or Sellers with respect to such Assets by any taxing Governmental
Authority. 
 (D) To Sellers’ Knowledge, except as listed on Schedule 5.01(h), none of the Assets are bound as
of the Effective Time or will be bound at or after Closing by any tax partnership agreement binding upon Sellers or Buyer. 

(E) There are no outstanding Liens or other encumbrances with respect to Taxes upon any of the Assets, except for Liens with
respect to Taxes not yet due and payable listed on Schedule 5.01(h). 
 (ii) No Seller is a “foreign person”
(as that term is defined in Section 1445(f)(3) of the Code). 
 (iii) To Sellers’ Knowledge, each Seller has
complied in all material respects with all applicable Laws, rules and regulations relating to the payment and withholding of Taxes (including, without limitation, withholding of Taxes pursuant to Sections 1441, 1442, 1445, 1446 and 3402 of the Code
or any similar provision of state, local or foreign Law) and has, within the time and the manner prescribed by Law, withheld and paid over to the proper Governmental Authority all amounts required to be so withheld and paid over under applicable
Laws. 
 (iv) No Seller is the subject of or bound by any private letter ruling, technical advice memorandum or similar
ruling, memorandum, or agreement (including a closing agreement) with any Governmental Authority. 
 (v) No Seller has
received, or is otherwise not aware of, a claim of any Governmental Authority, in a jurisdiction where such entity does not file a Tax Return, stating that such entity is or may be subject to taxation by that jurisdiction for Taxes that would be
covered by or the subject of such Tax Return. 
 (vi) No Seller has any Liability for the Taxes of any Person under Treasury
regulations Section 1.1502-6 (or any similar provision of state, local or foreign Law), as a transferee or successor, by contract, by operation of Law or otherwise. No Sellers is a party to or bound by any Tax indemnity, Tax sharing or Tax
allocation agreement, or any other contract, obligation, understanding or agreement to pay the Taxes of another Person or to pay the Taxes with respect to transactions relating to any other Person. 

(vii) No Asset is (a) property required to be treated as being owned by another Person pursuant to the provisions of
Section 168(f)(8) of the Internal Revenue Code of 1954, as amended and in effect immediately prior to the enactment of the Tax Reform Act of 1986, (b) “tax-exempt use property” within the meaning of Section 168(h)(1) of

  
 17 

 
the Code, (c) “tax-exempt bond financed property” within the meaning of Section 168(g) of the Code, (d) “limited use property” within the meaning of Rev. Proc.
2001-28, (e) subject to Section 168(g)(1)(A) of the Code, or (f) subject to a “section 467 rental agreement” as defined in Section 467 of the Code. 

(i) Royalty Payments. To Sellers’ Knowledge, where any Seller is the party responsible for royalty payments, such
Seller has paid all lessor royalties, shut-in royalties, overriding royalties and other royalties or similar burdens on production with respect to the Leases that have become due and payable as of the Effective Time (“Royalties”)
(other than (i) royalties that are less than state-mandated minimum royalty amounts and (ii) royalties held in escrow or suspense accounts or escheated) due from Seller. 

(j) Hydrocarbon Sales. No Seller is obligated by virtue of a production payment or any other arrangement, other than gas
balancing arrangements, to deliver Hydrocarbons produced from the Properties at some future time without then or thereafter receiving payment for the production commensurate with Sellers’ ownership in and to the Assets. 

(k) Environmental Notices. Except as described on Schedule 5.01(k), neither Sellers have nor, to Sellers’
Knowledge, any other Person has received any notice, claim or action from a Governmental Authority alleging a violation or threatened violation of any Environmental Laws relating to the Assets where such violation has not been previously cured or
otherwise remedied. To Sellers’ Knowledge, except as set out in Schedule 5.01(k), there have not been any, and there currently are no violations of, Environmental Laws or other matters which will or could give rise to a violation of
Environmental Laws. Additionally, except as described in Schedule 5.01(k), to Sellers’ Knowledge (i) none of the Assets are in material violation of any Environmental Laws or any limitations, restrictions, conditions, standards,
obligations, or timetables contained in any Environmental Laws, (ii) there has not been any improper use, storage, transportation, release or disposal of Hazardous Substances relating to any of the ownership or operation of any of the Assets,
and (iii) none of the Assets are subject to any investigation or require any remedial action under any Environmental Laws or to respond to a release or threatened release of any Hazardous Substances. 

(l) Compliance with Laws and Permits. To Sellers’ Knowledge, the ownership and operation of the Assets have been in
compliance with all applicable Laws and Permits, except for such non-compliance which, individually or in the aggregate would not result in a Material Adverse Effect. Except as described in Schedule 5.01(l), Sellers have not received any
notice, claim or action from any Governmental Authority, or any other Person, alleging a violation or threatened violation of any applicable Laws relating to the Assets where such violation has not been previously cured or otherwise remedied. 

(m) Preferential Purchase Rights. Except as set forth in Schedule 5.01(m), no preferential rights to purchase, or
similar rights, burden Sellers’ sale of the Assets to the Buyer. 
 (n) Imbalances. To Sellers’ Knowledge,
there are no Imbalances as of the Execution Date with respect to the Properties. To Sellers’ Knowledge, Sellers are not obligated by virtue of a take or pay payment, advance payment or similar payment, to deliver Hydrocarbons, or proceeds from
the sale thereof, attributable to the Properties, at some future time without receiving payment thereof at or after the time of delivery. 

  
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 (o) Canal Use Fees. To Sellers’ Knowledge, Sellers have fully paid
all fees, rentals, and other payments due as of the Effective Time with respect to any canals used by Sellers in connection with, or as part of, the Assets. 

(p) Wells. Except as set forth in Schedule 5.01(p), to Sellers’ Knowledge, all oil and gas wells located
within the Assets have been drilled and completed within the limits permitted by all applicable Leases, contracts, pooling and unit agreements, and applicable Laws. No Well is subject to penalties or allowables after the Effective Time because of
any overproduction or any other violation of applicable Laws. Since the Execution Date, Sellers have not abandoned, and are not in the process of abandoning, any Wells (nor have they removed, nor are they in the process of removing, any material
items of personal property located on the Lands, except those replaced by items of substantially equivalent suitability and value). There are no wells located on the Assets with respect to which Sellers have received an order from any Governmental
Authority requiring that such well be plugged and abandoned that has not been plugged and abandoned. 
 (q) Commitments,
Abandonments or Proposals. Except as set forth on Schedule 5.01(q), Sellers have incurred no expenses, and have made no commitments to make expenditures in connection with the ownership or operation of the Assets after the Effective Time
(i) in excess of $50,000 or (ii) other than routine expenses incurred in the normal operation of wells on the Properties in accordance with generally accepted practices in the oil and gas industry; and (ii) no proposals are currently
outstanding by Sellers or other working interest owners to drill additional wells, or to deepen, plug back, or rework existing wells, or to conduct other operations for which consent is required under any applicable joint operating agreements, or to
conduct any other operations other than normal operation of existing wells on the Lands, or to abandon any wells, on the Lands. 

(r) Plugging and Abandonment. Except for wells listed in Schedule 5.01(r), and except for wells drilled to depths
not included within the Properties or within units in which the Properties participate which have never been completed in such depths and for which Sellers are not primarily liable to properly plug, replug and abandon, to Sellers’ Knowledge,
there are no dry holes, or shut in or otherwise inactive wells, located on the Lands or on lands pooled or unitized therewith, except for wells that have been properly and completely plugged and abandoned. 

(s) Intellectual Property. Sellers either own, or have valid licenses or other rights to use, the intellectual property
described on Schedule 5.01(s). 
 (t) Basic Documents. Except as set forth in Schedule 5.01(t): 

(i) The Leases, Contracts, and Permits and licenses, easements, rights-of-way and other rights-of-surface use comprising any
part of or otherwise relating to the Assets (collectively, the “Basic Documents”) are, to Sellers’ Knowledge, in full force and effect and constitute valid and binding obligations of the parties thereto in all material
respects. Sellers have not, and to Sellers’ Knowledge, no operator thereof has, (i) manifested an intention to abandon any Lease, (ii) received notice from any lessor of such lessor’s intention to bring litigation to terminate a
Lease, (iii) received notice that a lessor has filed an affidavit of non-production with the appropriate county or parish clerk applicable to a Lease, (iv) received notice of any request or demand for payments, adjustments of payments, or
performance pursuant to obligations under any Lease that is still outstanding, or (v) received notice of default with respect to the payment or calculation of Lease royalties, overriding royalties, rentals or bonus payments that has not been
cured. 
 (ii) To Sellers’ Knowledge (i) Sellers are not in breach or default (and no situation exists which with
the passing of time or giving of notice would create a breach or default) of their obligations under the Basic Documents, and (ii) no breach or default by any Third Party (or situation which with the passage of time or giving of notice would
create a breach or default) exists as to such Third Party’s obligations under the Basic Documents. To Sellers’ Knowledge, all payments (including all delay rentals, royalties, shut-in royalties and valid calls for payment or prepayment
under joint operating agreements) owing under Basic Documents, have been, and are being made, correctly, timely, and before the same became delinquent, by Sellers and, where the payment of same is to be made by Third Parties, have been and are being
made, to Sellers’ Knowledge, by such Third Parties. 

  
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 (u) Condemnation. To Sellers’ Knowledge, there are no pending or
threatened taking or eminent proceedings (whether permanent, temporary, whole or partial) affecting any of the Assets. 
 (v)
Damages. To Sellers’ Knowledge, as of the Execution Date, there has not been any damage or destruction to any of the Well or the Facilities, except for ordinary wear customary in the oil and gas industry. 

(w) Suspense Amounts. Except as set forth in Schedule 5.01(w), there are no amounts held in suspense by Sellers
relative to the Properties. 
 (x) No Mining Operations. Sellers have not, and to Sellers’ Knowledge no others
have, conducted any coal, precious metals, or other mining operations in, on or under any of the Lands and to Sellers’ Knowledge, the Lands and Leases are not encumbered or affected by any coal, precious metals, other mineral extraction leases
or agreements. 
 (y) Hedges. None of the Properties is subject to or bound by any Hedge. 

(z) Title; Pay Status. By, through and under Sellers, but not otherwise, Sellers own the WI and NRI in the Wells set
forth in Exhibit A-Part 2 through the life and existence of each of such Wells, and assuming entry of the Sale Order by the Bankruptcy Court, free and clear of any and all Liens other than Permitted Encumbrances. To Sellers’ Knowledge,
Sellers’ entire interest in each Well is in paying status and has not been suspended by the oil and gas purchaser or any other remitter of proceeds of production. 

(aa) Production Sales Contracts. To Sellers’ Knowledge, except for agreements or arrangements which are cancelable
on thirty (30) days’ notice or less without penalty or detriment, there exist no agreements or arrangements for the sale of Hydrocarbons from the Properties (including calls on, or other rights to purchase, production, whether or not the
same are currently being exercised). Sellers are presently receiving a price for all production from (or attributable to) each Property covered by a production sales contract as computed in accordance with the terms of such contract, and is not
having deliveries of gas from any Property subject to a production sales contract curtailed substantially below such Property’s delivery capacity. 

(bb) Notice of Bankruptcy Case. Sellers have undertaken commercially reasonable action to notify (by providing written
notice by U.S. Mail at the last address known to Sellers) all 

  
 20 

 
known lienholders, lessors of the Leases, Contract counterparties, other known creditors and interest holders, and others known to have any claims against the Assets and/or Sellers, of the
Bankruptcy Case and the motion by Sellers to sell the Assets. 
 (cc) Insurance. Sellers have insurance in place
covering the Properties in types and amounts as are reasonable and customary in the oil and gas exploration and production industry. There are no insurance claims by Sellers for damage to the Properties currently outstanding and unpaid or otherwise
unresolved. 
 (dd) Non-Consent Operations. Except as disclosed in Schedule 5.01(dd), Sellers have not
(i) made any non-consent elections in any operations or activity proposed with respect to the Properties which could result in any of Sellers’ interest in any Property becoming subject to a penalty or a forfeiture as a result of such
non-consent election, except to the extent reflected in the WI and NRI of the Wells set forth in Exhibit A-Part 2 or (ii) with respect to the contracts described in Exhibit A-Part 5, taken any action, nor refrained from taking any
action, the effect of which has been to (A) increase Sellers’ WI in any of the Wells to a level greater than that which Sellers have represented on Exhibit A-Part 2, or (B) reduce Sellers’ NRI in any of the Wells to a
level less than that which Sellers have represented on Exhibit A-Part 2 
 (ee) Not Investment Company. Each
Seller is not an “investment company” or a company “controlled” by an “investment company” within the meaning of the Investment Company Act of 1940, as amended, or is otherwise subject to regulation under or the
restrictions of such act. 
 (ff) Knowledgeable Seller. Each Seller has knowledge, skill and experience in financial,
business, and investment matters relating to the transactions contemplated by this Agreement and is capable of evaluating the merits and risks of such transactions. To the extent deemed necessary by Sellers, Sellers have retained, at their own
expense, and relied upon, appropriate professional advice regarding the investment, tax, and legal merits and consequences of its execution of this Agreement. 

(gg) Contracts; Leases. To Sellers’ Knowledge, Schedule 5.01(gg) lists all Material Contracts as of the date
hereof. 
 (hh) Intentionally Deleted. 

(ii) Payment to Service Providers. To Sellers’ Knowledge, all payments owed for labor, materials and supplies
rendered or furnished to or in connection with the Assets on or after the Petition Date have been, and are being made, correctly, timely, and before the same became delinquent, by Sellers and, where the payment of same is to be made by Third
Parties, have been and are being made, to Sellers’ Knowledge, by such Third Parties. 
 Section 5.02 Representations and
Warranties of Buyer. 
 Buyer represents and warrants to Sellers as follows: 

(a) Organization. Buyer is a Delaware limited liability company duly organized, validly existing and in good standing
under the Laws of the state of Delaware. 
 (b) Qualification. Buyer is duly qualified to do business and is in good
standing in each jurisdiction in which the nature of its business as now conducted makes such qualification 

  
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necessary, except where the failure to be so qualified or in good standing would not materially hinder or impede the consummation by Buyer of the transactions contemplated by this Agreement. 

(c) Authorization/Consents. The execution and delivery by Buyer of this Agreement and the performance of its obligations
hereunder have been duly and validly authorized by all requisite action by Buyer’s governing body and under its organizational documents. Subject to the entry of a Sale Order by the Bankruptcy Court and except as would not materially hinder or
impede the consummation by Buyer of the transactions contemplated by this Agreement, Buyer is not required to give any notice to, make any filing with or obtain any authorization, consent, or approval from any Governmental Authority or any Third
Party in order for Buyer to consummate the transactions contemplated by this Agreement. 
 (d) Enforceability. This
Agreement has been duly executed and delivered by Buyer and constitutes the valid and legally binding obligation of Buyer, enforceable in accordance with its terms and conditions, except insofar as the enforceability thereof may be limited by
applicable bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar Laws affecting the enforcement of creditors’ rights generally and by general principles of equity, regardless of whether such principles are
considered in a proceeding at Law or in equity. 
 (e) Noncontravention. Neither the execution and the delivery of
this Agreement, nor the consummation of the transactions contemplated hereby by Buyer will violate or breach the terms of, cause a default under, result in acceleration of, create in any party the right to accelerate, terminate, modify or cancel or
require any notice under: (i) any applicable Law, (ii) the organizational documents of Buyer, or (iii) any material contract of Buyer, other than, in the case of clauses (i) and (iii), any such items that, individually or in the
aggregate, would not materially hinder or impede the consummation by Buyer of the transactions contemplated by this Agreement. 

(f) Litigation. There are no suits, actions or litigation before or by any Governmental Authority that are pending or,
to Buyer’s Knowledge, threatened against Buyer or any Affiliate of Buyer that would materially hinder or impede the consummation by Buyer of the transactions contemplated by this Agreement. 

(g) Brokers’ Fees. Buyer has no Liability or obligation to pay any fees or commissions to any broker, finder or
agent with respect to the transactions contemplated by this Agreement for which Sellers will be liable or obligated. 
 (h)
Financing. Buyer has (and at the Closing will have) sufficient cash, available lines of credit or other sources of immediately available funds (in United States Dollars) to enable Buyer to pay the Purchase Price to Sellers at the Closing, and
Buyer does not have any reason to believe that the financing required to consummate the transactions contemplated by this Agreement will not be available to Buyer on a timely basis to consummate the transactions contemplated by this Agreement. 

(i) Adequate Assurances Regarding Contracts. Buyer will be capable of satisfying the conditions contained in Sections
365(b)(1)(C) and 365(f)(2)(B) of the Bankruptcy Code with respect to the Contracts. 
 (j) Investment. Buyer is an
experienced and knowledgeable investor in the oil and gas business. Prior to making its Bid, Buyer has had an opportunity to conduct due diligence 

  
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regarding the Assets. Prior to entering into this Agreement, Buyer was advised by and has relied solely on its own legal, tax and other professional counsel and consultants concerning this
Agreement, the Assets, including executory contracts and unexpired leases, and the value thereof. In making the decision to enter into this Agreement, Buyer did not rely upon or receive any written or oral statements, representations, promises,
warranties, or guarantees whatsoever, whether express, implied by operation of law, or otherwise, with respect to the Assets, or the completeness of any information provided in connection with the sale of the Assets or the Auction, and has relied
solely on the basis of its own independent valuation and due diligence investigation of the Assets. 
 (k) NORM, Wastes
and Other Substances. Buyer acknowledges that the Assets have been used for exploration, development and production of oil and gas and that there may be petroleum, produced water, wastes or other substances or materials located in, on or under
the Assets or associated with the Assets. Equipment and sites included in the Assets may contain asbestos, naturally occurring radioactive material (“NORM”) or other Hazardous Substances. NORM may affix or attach itself to the
inside of Wells, materials and equipment as scale or in other forms. The Wells, materials and equipment located on the Assets or included in the Assets may contain NORM, asbestos and other wastes or Hazardous Substances. NORM containing material
and/or other wastes or Hazardous Substances may have come in contact with various environmental media, including without limitation, water, soils or sediment. Special procedures may be required for the assessment, remediation, removal,
transportation or disposal of environmental media, wastes, asbestos, NORM and Hazardous Substances from the Assets. 
 (l)
Accredited Investor. Buyer is an “accredited investor,” as such term is defined in Regulation D of the Securities Act of 1933, as amended. Buyer is acquiring the Assets for its own account and not for distribution or resale in any
manner that would violate any state or federal securities Law. 
 ARTICLE VI. CERTAIN COVENANTS 

Section 6.01 Access. From the Execution Date until the Closing, Sellers shall cooperate with Buyer and provide Buyer and its
attorneys, representatives, consultants and advisors, access at all reasonable times to the Assets, Files, any contract files, lease or other title files, production files, well files, accounting files, and other files of Sellers pertaining to the
ownership and operation of the Assets, and Sellers will use their Commercially Reasonable Efforts to arrange for Buyer, and its attorneys, representatives, consultants and advisors, to have access to any such files in the office of each Seller. In
connection with its access to the Assets, Buyer shall have the right at all reasonable times to inspect and test the Properties to determine the accuracy of Sellers’ representations and warranties. In addition, Sellers shall use their
Commercially Reasonable Efforts to immediately seek and obtain consent to disclose to Buyer any records or data which Sellers cannot provide to Buyer without, in their opinion, breaching confidentiality agreements with other parties, as identified
in Schedule 6.01. All information obtained by Buyer and its representatives pursuant to this Section 6.01 shall be subject to the terms set forth in Section 6.02. 

Section 6.02 Confidentiality. Buyer agrees (a) to keep any non-public information or documents obtained in connection with
this Agreement confidential, (b) not to use any such information or documents for any purpose other than to evaluate, negotiate and consummate the transactions contemplated by this Agreement and (c) not to disclose the terms hereof or
thereof to any Person other than Buyer’s Affiliates and Buyer’s and its Affiliates’ professional advisors and consultants, financial advisors and bankers (“Advisors”), except in each case with the prior written
consent of Sellers; provided that Buyer shall ensure that all of Buyer’s and its Affiliates’ Advisors are made aware, prior to the 

  
 23 

 
disclosure of such confidential information to the Advisors, of the confidential nature thereof, that the Advisors shall owe a duty of confidence to Sellers as well as Buyer and obtain the
Advisors’ written undertaking for the benefit of Sellers to hold such confidential information in confidence. Notwithstanding the foregoing, if required by Law or judicial or administrative order or process, Buyer may disclose information and
documents required to be held confidential hereunder to the extent, and only to the extent, necessary to comply with such Law or judicial or administrative order or process. Buyer shall promptly notify Sellers of such required disclosure and shall
request that confidential treatment be afforded any such disclosed information. If the Closing should occur, the foregoing confidentiality restriction on Buyer shall terminate (except as to the Excluded Assets). 

Section 6.03 Conduct of Operations. From the Execution Date until Closing, Sellers will, consistent with their duties and
obligations as a debtors-in-possession and subject to the requirements of the Bankruptcy Code and any orders of the Bankruptcy Court, (a) continue the routine operation of the Properties in the ordinary course of business and as would a
reasonable prudent operator in accordance with good oilfield practice; (b) operate the Properties in compliance with all Permits, applicable Laws and Environmental Laws and in compliance with all of the Basic Documents; (c) fulfill all
obligations under the Basic Documents and, in all respects, under such applicable Laws and Environmental Laws; and (d) maintain all equipment used in connection with the Properties in at least as good of a condition as it is as of the Execution
Date, subject to ordinary wear and tear. Between the Execution Date and the Closing Date, Sellers will, consistent with their duties and obligations as a debtors-in-possession and subject to the requirements of the Bankruptcy Code and any orders of
the Bankruptcy Court: (i) conduct their business relating to the Properties only in the ordinary course of business; (ii) use their Commercially Reasonable Efforts to preserve, or cause to be preserved, in full force and effect, all
Leases, operating agreements, easements, rights-of-way, Permits, approvals, bonds, guaranties, licenses and other agreements that relate to the Properties; (iii) make, or cause to be made, all filings required under applicable Law with respect
to the Properties; (iv) maintain, or have maintained on its behalf, the same insurance coverage for the benefit of Sellers and the Properties as is in effect on the date hereof; (v) not mortgage, pledge, encumber, create or allow any
consensual Liens not existing on the date hereof upon any Properties; (vii) keep Buyer reasonably informed regarding current and proposed activities relating to the Properties; and (viii) not take any action that would cause its
representations or warranties hereunder to be materially incorrect as of the Closing Date. 
 Section 6.04 Bonds. Buyer
acknowledges that none of the bonds, letters of credit and guarantees, if any, posted by Seller or its Affiliates with Governmental Authorities or any Third Party and relating to the Assets, are transferable or are to be transferred to Buyer. On or
before the Closing Date, Buyer shall obtain, or cause to be obtained in the name of Buyer or its designee, replacements for such Governmental Authority bonds, letters of credit and guarantees to the extent such replacements are necessary to permit
the cancellation of the Governmental Authority bonds, letters of credit and guarantees posted by Seller and/or its Affiliates. In addition, at or prior to Closing, Buyer shall deliver to Seller evidence of (a) the posting of bonds or other
security with all applicable Governmental Authorities meeting the requirements of such authorities for Buyer to own and, where appropriate, operate, the Assets and (b) Buyer’s qualification to own and operate the Assets in the
jurisdictions where the Assets are located. Buyer further agrees to replace Seller as the provider of a bond on any Third Party existing bond obligation applicable to the Assets and described in Schedule 6.04 hereto, in an amount not to
exceed Sellers’ current amount of such Third Party bond obligation, and to the extent required by the Bankruptcy Court and permitted by such Third Party. 

Section 6.05 Payment of Expenses. Each Seller will cause its proportionate share of all expenses (including all bills for labor,
materials and supplies used or furnished for use in connection with the Assets and all Production Taxes, Transfer Taxes and severance, production, and similar Taxes) relating to the ownership or operation of the Assets prior to the date of Closing
to be promptly paid and discharged, except for expenses disputed in good faith. 

  
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 Section 6.06 Restrictions on Certain Actions. From the Execution Date until Closing,
except as set forth in this Article VI, Sellers have not, and will not, without Buyer’s prior written consent, which may be withheld by Buyer at Buyer’s discretion: 

(a) expend any funds, or make any commitments to expend funds (including entering into new agreements which would obligate
Sellers to expend funds), or otherwise incur any other obligations or liabilities, with respect to the Properties, other than to pay expenses or to incur liabilities in connection with routine operation of the Properties, which routine operation
shall include voting on all operations proposed pursuant to any applicable joint operating agreements, including (i) proposals of new Wells, (ii) reworking or recompletion of Wells and (iii) elections made pursuant to the area of
mutual interest provision thereof, after the Effective Time and except in the event of an emergency requiring immediate action to protect life or preserve the Properties, provided Sellers (A) promptly advise Buyer in writing of such items
described in Sections 6.06(a)(i), 6.06(a)(ii) and 6.06(a)(iii) when same occur, and (B) will not, without Buyer’s prior written consent make a capital expenditure, voluntarily incur any liability or enter into any
commitment or agreement with respect to the Properties which will cost (or which could involve the payment of amounts) in excess of Fifty Thousand Dollars and 00/100 ($50,000.00), net to Sellers’ interest, with respect to an individual project
or series of related projects; 
 (b) except where necessary to prevent the termination of a Lease or other material
agreement governing Sellers’ interest in the Properties and except with respect to the Excluded Assets, propose the drilling of any additional wells, or propose the deepening, plugging back or reworking of any existing Wells, or propose the
conducting of any other operations which require consent under any applicable joint operating agreement, or propose the conduct of any other operations other than the normal operation of the existing Wells on the Properties, or propose the
abandonment of any wells on the Properties (and Sellers agree that they will advise Buyer of any such proposals made by Third Parties and will respond to each such proposal made by a Third Party in the manner requested by Buyer); and 

(c) release (or permit to terminate), or modify or reduce its rights under, any Lease forming a part of the Properties, or any
other Basic Document, or enter into any new agreements which would be Basic Documents, or modify any existing production sales contracts or enter into any new production sales contracts, except contracts terminable by Sellers with notice of sixty
(60) days or less. 
 Section 6.07 Commercially Reasonable Efforts. Subject to any applicable order of the Bankruptcy
Court, and otherwise on the terms and subject to the conditions of this Agreement, Sellers and Buyer shall use Commercially Reasonable Efforts to cause the Closing to occur as promptly as practicable, and no Party shall take any action to prevent or
delay, or fail to take any action in order to prevent or delay, the Closing from occurring as promptly as practicable. Without limiting the generality of the foregoing, the Parties shall (and shall cause their respective directors, officers and
subsidiaries, and use their Commercially Reasonable Efforts to cause their respective Affiliates, employees, agents, attorneys, accountants and representatives, to consult and cooperate with and provide reasonable assistance to each other and
otherwise use Commercially Reasonable Efforts in connection with (a) obtaining all necessary consents, licenses, qualifications or other permission or action by, and giving all necessary notices to and making all necessary filings with and
applications and submissions to, any Governmental Authority or other Person with respect to the consummation of the transactions contemplated by this Agreement, (b) causing to be lifted or rescinded any injunction or restraining order

  
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or other order adversely affecting the ability of the parties to consummate the transactions contemplated by this Agreement; (c) defending, and cooperation in defending, all proceedings
before a Governmental Authority challenging this Agreement or the consummation of the transactions contemplated by this Agreement; and (d) the execution of any additional instruments necessary to consummate the transactions contemplated by this
Agreement, and (e) in general, consummating and making effective the transactions contemplated hereby. 
 Section 6.08
Bankruptcy Actions. Buyer covenants and agrees that it shall cooperate with Sellers in connection with furnishing information or documents to Sellers to satisfy the requirements of adequate assurance of future performance under
Section 365(f)(2)(B) of the Bankruptcy Code. 
 Section 6.09 Notice of Litigation. Until the Closing, (a) Buyer, upon
learning of the same, shall promptly notify Sellers of any proceeding by or before a Governmental Authority which is commenced or threatened against Buyer and which affects this Agreement or the transactions contemplated herein and (b) Sellers,
upon learning of the same, shall promptly notify Buyer of any proceeding by or before a Governmental Authority which is commenced or threatened against Sellers which affects this Agreement or the transactions contemplated herein. 

Section 6.10 Notice of Certain Matters. 

(a) Until the Closing, Sellers shall give prompt notice to Buyer of: (i) the occurrence or nonoccurrence of any event the
occurrence or nonoccurrence of which, to Sellers’ Knowledge, would be likely to cause any representation or warranty made by Sellers in Section 5.01 to be untrue or inaccurate at or prior to the Closing and (ii) any failure of
Sellers to comply with or satisfy any covenant, condition, or agreement to be complied with or satisfied by Sellers hereunder prior to Closing. 

(b) Until the Closing, Buyer shall give prompt notice to Sellers of: (i) the occurrence or nonoccurrence of any event the
occurrence or nonoccurrence of which, to Buyer’s Knowledge, would be likely to cause any representation or warranty contained in Section 5.02 to be untrue or inaccurate at or prior to the Closing, and (ii) any failure of Buyer
to comply with or satisfy any covenant, condition, or agreement to be complied with or satisfied by Buyer hereunder prior to Closing. 

(c) The delivery of any notice pursuant to this Section 6.10 shall not be deemed to (i) modify the
representations or warranties hereunder of the Party delivering such notice, (ii) modify the conditions set forth in Article VIII, or (iii) limit or otherwise affect the remedies available hereunder to the Party receiving such
notice. 
 Section 6.11 Taxes. 

(a) Production Taxes. For purposes of allocating liability for Production Taxes under this Agreement, in the case of any
taxable period that begins before and ends after the Effective Time, Production Taxes attributable to the Assets allocable to the portion of the period ending before the Effective Time shall be equal to the amount of such Production Taxes for the
entire period multiplied by a fraction, the numerator of which is the number of days during the period that are in the period ending before the Effective Time and the denominator of which is the total number of days in the period. Similarly,
Production Taxes attributable to the Assets allocable to the portion of the period beginning on the Effective Time shall be equal to the amount of such Production Taxes for the entire period multiplied by a fraction, the numerator of which is the
number of days during the portion of the period beginning on the Effective Time and 

  
 26 

 
the denominator of which is the total number of days in the period. Sellers shall be liable for and shall timely pay all Production Taxes that are attributable to all taxable periods (or portions
thereof) ending before the Effective Time, and Buyer shall be liable for all Production Taxes that are attributable to taxable periods beginning on or after the Effective Time. 

(b) Refunds. Any refunds and credits with respect to Taxes paid by Sellers or allocated to Sellers under
Section 6.11(a) shall belong to Sellers, provided, however, that in no event shall Sellers be entitled to any Taxes (or any refunds or credits with respect to such Taxes) that increase the Purchase Price pursuant to
Section 9.02(a). Buyer will forward to Sellers or reimburse Sellers for any refunds or credits of Taxes belonging to Sellers within ten (10) Business Days from receipt thereof by Buyer. Any refunds and credits with respect to Taxes
paid by Buyer or allocated to Buyer under Section 6.11(a) or that increase the Purchase Price pursuant to Section 9.02(a) shall belong to Buyer. Sellers will forward to Buyer or reimburse Buyer for any refunds or credits
belonging to Buyer within ten (10) Business Days from receipt thereof by Sellers. 
 (c) Withholding. Buyer shall
not withhold, under Code Section 1445, from payments to be made pursuant to any transaction contemplated by this Agreement, provided that Sellers deliver to Buyer at Closing a properly completed Certificate of Non-Foreign Status in the form
attached hereto as Exhibit E. Except as provided in the immediately preceding sentence, Buyer shall be entitled to deduct and withhold from any consideration payable hereunder, or other payment otherwise payable pursuant to this Agreement,
the amounts required to be deducted and withheld under the Code, or any provision of any U.S. federal, state, local or foreign Law. Any amounts so withheld shall be paid over to the appropriate Governmental Authority. To the extent that amounts are
so deducted and withheld, such deducted and withheld amounts shall be treated for all purposes of this Agreement as having been paid by the Buyer to the Sellers. 

(d) Cooperation on Preparation of Tax Returns. Sellers and Buyer shall provide the other with such reasonable assistance
as is reasonably requested (i) to prepare any Tax Return potentially impacting the liability of Sellers or Buyer for Taxes and (ii) in connection with any audit or other examination by any Governmental Authority or judicial or
administrative proceedings relating to any liability of Sellers or Buyer for Taxes. If the cooperation requested by one Party under this Section 6.11(d) requires the other Party to incur any extraordinary cost or expense, the requesting
Party shall reimburse the other Party for (or shall bear) such cost or expense, provided that the other Party reasonably notifies the requesting Party about the incurrence of such cost or expense in advance. 

(e) Transfer Taxes. All sales, use, stamp, documentary, filing, recording, value-added, registration, stamp duty,
transfer or similar Taxes, including any interest and penalties in connection therewith, that are imposed or levied by any Governmental Authority by reason of, in connection with or attributable to the sale, assignment, conveyance and transfer by
Sellers to Buyer of the Assets pursuant to this Agreement (“Transfer Taxes”) shall be borne by Buyer, and Buyer shall, at its own expense, file all necessary Tax Returns and other documentation with respect to all such Transfer
Taxes. The Parties shall reasonably cooperate with the other to prepare and file all such Tax Returns and to provide any information and documentation reasonably requested that may be necessary to obtain any exemption from any Transfer Taxes. In
addition, Sellers shall reasonably cooperate to mitigate, reduce or eliminate any Transfer Taxes, including providing, executing and/or delivering any certificate or other documents as may be requested by Buyer to mitigate, reduce or eliminate any
such Transfer Taxes. 

  
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 Section 6.12 Amendment of Exhibits and Schedules. Until five (5) Business Days
prior to the Closing, Sellers may correct or supplement any Schedule hereto by furnishing such corrected or supplemented Schedule to Buyer (and such corrected or supplemented information shall be deemed to amend this Agreement for all purposes);
provided, however, any corrected or supplemented information set forth on such corrected or supplemented Schedule shall be disregarded (a) in determining whether the condition set forth in Section 8.02(a) has been satisfied and
(b) to the extent such corrected or supplemented information reduces or increases the Allocated Value of a Well, on a Well-by-Well basis. Additionally, the Parties agree to make such revisions to Exhibit A as are reasonably necessary or
appropriate to correct the descriptions of, or more fully and better describe, the Assets. 
 Section 6.13 Dispositions of
Assets. During the Interim Period, Sellers shall not, without the prior and sole discretion consent of Buyer, transfer, sell, or otherwise dispose of any Assets, except for (a) sales and dispositions of Hydrocarbon production in the
ordinary course of business, (b) sales of equipment that is no longer necessary in the operation of the Assets or for which replacement equipment is obtained, and (c) sales, transfers or similar dispositions of Assets in accordance with
Section 4.01 of the exercise of any preferential rights to purchase or similar rights (and, following any such sale, transfer or disposition pursuant to this clause (c), the Purchase Price shall be reduced by the Allocated Value of the Assets,
or portion thereof, so sold or transferred). 
 Section 6.14 Buyer Indemnification. BUYER HEREBY INDEMNIFIES AND SHALL DEFEND AND
HOLD SELLERS INDEMNITEES HARMLESS FROM AND AGAINST ANY AND ALL OF THE FOLLOWING CLAIMS ARISING FROM BUYER’S ONSITE INSPECTION AND REVIEW OF THE ASSETS: (I) CLAIMS FOR PERSONAL INJURIES TO OR DEATH OF EMPLOYEES OF BUYER, ITS CONTRACTORS,
AGENTS, CONSULTANTS, AND REPRESENTATIVES, AND DAMAGE TO THE PROPERTY OF BUYER OR OTHERS ACTING ON BEHALF OF BUYER, EXCEPT FOR INJURIES OR DEATH CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ONE OR MORE OF THE SELLERS INDEMNITEES; AND (II)
CLAIMS FOR PERSONAL INJURIES TO OR DEATH OF EMPLOYEES OF SELLERS OR THIRD PARTIES, AND DAMAGE TO THE PROPERTY OF SELLERS OR THIRD PARTIES, TO THE EXTENT CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF BUYER. TO THE EXTENT PROVIDED ABOVE, THE
FOREGOING INDEMNITY INCLUDES, AND THE PARTIES INTEND IT TO INCLUDE, AN INDEMNIFICATION OF THE INDEMNIFIED PARTIES FROM AND AGAINST CLAIMS ARISING OUT OF OR RESULTING, IN WHOLE OR PART, FROM THE CONDITION OF THE ASSETS OR THE SOLE, JOINT,
COMPARATIVE, OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF ANY OF THE INDEMNIFIED PARTIES. THE PARTIES AGREE THAT THE FOREGOING COMPLIES WITH THE EXPRESS NEGLIGENCE RULE AND IS CONSPICUOUS. 

ARTICLE VII. BANKRUPTCY MATTERS 

Section 7.01 Auction and Bidding. 

(a) Auction. Consummation of the transactions provided for herein is subject to the determination by Sellers that this
Agreement is the highest or otherwise best offer from a Qualified Bidder for the Assets and the assumption of the Assumed Obligations. In connection with this determination, Sellers may conduct an auction (the “Auction”) of the
Assets in accordance with Section 363 of the Bankruptcy Code and the Bidding Procedures, as may be modified by the Bidding Procedures Order. 

(b) Bidding. Sellers shall offer the Assets for sale in accordance with the Bidding Procedures and shall solicit Bids
from Qualified Bidders. If more than one competing proposal is timely received by Sellers, Sellers may conduct the Auction in accordance with the Bidding Procedures and the Bidding Procedures Order. In the event Sellers conduct the Auction, Buyer
will be the entity acting as the Qualified Bidder and submitting a Bid, if any, for the Assets. 

  
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 Section 7.02 Certain Contract Matters. 

(a) Leases. The Leases listed on Exhibit A-Part 1 are to be transferred to Buyer as part of the sale of the
Assets. To the extent any Lease constitutes an executory contract or unexpired lease of real property under Section 365 of the Bankruptcy Code, such Lease shall be assumed by Sellers and assigned by Sellers to Buyer pursuant to Section 365
of the Bankruptcy Code. 
 (b) Contracts. Sellers shall assign to Buyer, and Buyer shall assume, the Contracts under
Section 365 of the Bankruptcy Code pursuant to the Sale Order. Buyer shall pay, or otherwise satisfy, settle, or resolve, all Contract Cure Amounts. To the extent any Contract does not constitute an executory contract subject to assumption and
assignment under Section 365 of the Bankruptcy Code, then the rights and obligations under such Contracts shall be transferred to Buyer as part of the sale of the Assets, provided, however, that Buyer shall pay, or otherwise satisfy, settle or
resolve, all unpaid Contract Cure Amounts pertaining to such Contracts. Buyer shall have all of Sellers’ rights to contest such Contract Cure Amounts, including contesting the amount of such cure obligation and the proper source of payment of
such obligation, and Sellers agree to fully cooperate with Buyer in minimizing Buyer’s obligations with respect to the Contract Cure Amounts. 

Section 7.03 Appeal. In the event the Bidding Procedures Order or the Sale Order shall be appealed, Sellers and Buyer shall use
Commercially Reasonable Efforts to defend such appeal. 
 ARTICLE VIII. CONDITIONS TO CLOSING 

Section 8.01 Conditions to Sellers’ Obligations. The obligations of Sellers to consummate the transactions provided for
herein are subject, at the option of Sellers, to the fulfillment on or prior to the Closing Date of each of the following conditions: 

(a) Representations. The representations and warranties of Buyer set forth in this Agreement shall be true and correct
in all material respects on and as of the Closing Date (provided that any representations and warranties expressly qualified by materiality or a like standard shall be true and correct in all respects on and as of the Closing Date), with the same
force and effect as though such representations and warranties had been made or given on and as of the Closing Date (other than representations and warranties that are made as of another date, which shall be so true and correct as of such date
only); provided, however, that this condition shall be deemed to have been satisfied even if such representations and warranties are not true and correct unless the individual or aggregate impact of all inaccuracies of such representations and
warranties would materially hinder or impede the consummation by Buyer of the transactions contemplated by this Agreement. 

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

  
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 (c) Execution and Delivery of Closing Documents. Buyer shall have executed
and acknowledged, as appropriate, and shall be ready, willing and able to deliver to Sellers and the Escrow Agent, as applicable, all of the documents described in Section 9.04 and Buyer shall be ready, willing and able to deliver to
Sellers the Adjusted Purchase Price. 
 (d) Performance Bonds. Buyer shall have obtained, or caused to be obtained, in
the name of Buyer, replacements for Sellers’ and/or Sellers’ Affiliates’ bonds, letters of credit and guarantees applicable to the Assets, and such other bonds, letters of credit and guarantees as may be required in accordance with
Section 6.04. Buyer’s obligation under Section 6.04 to replace Sellers as the provider of a bond on any Third Party bond obligation applicable to the Assets only is limited in an amount not to exceed Sellers’
current amount of such Third Party bond obligation. If, as a result of such limitation, the Buyer does not provide a bond in the full amount of the bond obligation required by the Third Party, and the Assets to which such bond applies are excluded
from the Closing pursuant to Section 4.01(b), the failure of the Buyer to provide a bond in the full amount of the bond obligation required by the Third Party will not otherwise affect Sellers’ obligation to consummate the
transactions hereunder. Additionally, if, as a result of such limitation, the Buyer does not provide a bond in the full amount of the bond obligation required by the Third Party, but the Assets to which such bond applies are not excluded from the
Closing pursuant to Section 4.01(b), Sellers or Buyer will each nevertheless have a separate and independent right, to exclude the Assets to which such bond applies, from the Closing, and in the event of such exclusion, the Purchase
Price shall be reduced by the Allocated Value of such excluded Assets, and the failure of the Buyer to provide a bond in the full amount of the bond obligation required by the Third Party in such instance will not otherwise affect Sellers’
obligation to consummate the transactions hereunder. 
 Section 8.02 Conditions to Buyer’s Obligations. The obligations of
Buyer to consummate the transactions provided for herein are subject, at the option of Buyer, to the fulfillment on or prior to the Closing Date of each of the following conditions: 

(a) Representations. The representations and warranties of Sellers set forth in this Agreement shall be true and correct
in all respects on and as of the Closing Date (provided that any representations and warranties expressly qualified by materiality or a like standard shall be true and correct in all respects on and as of the Closing Date), with the same force and
effect as though such representations and warranties had been made or given on and as of the Closing Date (other than representations and warranties that are made as of another date, which shall be so true and correct as of such date only);
provided, however, that this condition shall be deemed to have been satisfied even if such representations and warranties are not true and correct unless the individual or aggregate impact of all inaccuracies of such representations and warranties
has resulted or would reasonably be expected to result in a Material Adverse Effect. 
 (b) Performance. Sellers shall
have materially performed or complied with all obligations, agreements and covenants contained in this Agreement as to which performance or compliance by Sellers are required prior to or at the Closing. 

(c) Execution and Delivery of Closing Documents. Sellers shall have executed and acknowledged, as appropriate, and shall
be ready, willing and able to deliver to Buyer all of the documents described in Section 9.03. 
 (d) Release
or Discharge of all Liens. All loans to Seller secured by Liens, and all other Liens and security interests affecting the Assets to be conveyed at Closing, or which result in encumbrances, claims, or other burdens affecting any of the Assets,
including the Liens 

  
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described in Schedule 1.01(b), shall attach to the proceeds of the sale represented by the delivery by Buyer at Closing of the Purchase Price pursuant to a binding order of the Bankruptcy
Court, so that the sale and transfer of the Assets to Buyer at the Closing is free and clear of all Liens, claims and interests affecting the Assets (other than Liens created by Buyer), pursuant to Section 363(f) of the Bankruptcy Code. 

Section 8.03 Conditions to the Parties’ Obligations. The obligations of Sellers and Buyer to consummate the transactions
provided for herein are subject to the fulfillment on or prior to the Closing Date of each of the following conditions: 

(a) Final Order. The Sale Order shall have been entered and shall have become a Final Order; provided that, if the Sale
Order has been entered and is not then subject to a stay, Buyer may notify Sellers that it desires to proceed to Closing notwithstanding that the Sale Order is not a Final Order and Sellers shall so proceed. 

(b) No Injunctions or Restraints. No applicable Law enacted, entered, promulgated, enforced or issued by any
Governmental Authority or other legal restraint or prohibition preventing the consummation of the transactions contemplated by this Agreement shall be in effect. 

Section 8.04 Closing Over Breaches or Unsatisfied Conditions. Notwithstanding anything to the contrary contained in this
Agreement, if there is a failure of any condition to be satisfied in favor of Buyer or if there is a breach of any representation or warranty or covenant of Sellers to the Knowledge of Buyer and Buyer elects to proceed with the Closing, then the
condition that is unsatisfied or the representation, warranty or covenant that is breached at the Closing Date will be deemed waived by Buyer, and Buyer will be deemed to fully release and forever discharge Sellers on account of any and all
Liabilities with respect to the same, including any claims for indemnification hereunder, and Buyer agrees, on behalf of itself and the Buyer Affiliates, not to make, file or bring any claim or cause of action with respect to such released
Liabilities. 
 Section 8.05 Frustration of Closing Conditions. Neither Buyer nor Sellers may rely on the failure of any
condition set forth in this Article VIII to be satisfied if such failure was caused by such Party’s failure to use its Commercially Reasonable Efforts to cause the Closing to occur, as required by Section 6.07. 

ARTICLE IX. CLOSING 

Section 9.01 Time and Place of Closing. If the conditions referred to in Article VIII have been satisfied or waived in
writing, the sale by Sellers and the purchase by Buyer of the Assets pursuant to this Agreement (the “Closing”) shall take place at the offices of Haynes and Boone, LLP, counsel to Sellers, located at 1221 McKinney Street, Suite
2100, Houston, Texas 77010, at 10:00 a.m., Houston time, on or before the Outside Date (the “Closing Date”). 

Section 9.02 Closing Statement; Adjustments to Purchase Price at Closing. Sellers shall prepare and deliver to Buyer, not later
than three (3) Business Days prior to Closing, a statement which sets forth the Parties’ good faith estimate of the adjustments to the Purchase Price (accompanied by supporting documentation) made in accordance with the following
provisions (the “Closing Statement”): 
 (a) At the Closing, the Purchase Price shall be increased, as set
forth in the Closing Statement, in the following amounts: 
 (i) all costs and expenses (including Royalties, Production
Taxes, and Operating Expenses, but excluding rentals, lease renewals, and other lease maintenance payments) paid by Sellers that are (A) attributable to the Assets conveyed at Closing and (B) attributable to any period of time from and
after the Effective Time; provided, however, in no event shall the Purchase Price be increased for any Production Taxes that are (or have been) deducted or withheld from amounts described in Section 9.02(b)(i) that are received by (or
that are otherwise receivable by) Sellers. 

  
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 (ii) the Overhead Costs (less any amounts received by Sellers from Third Parties
pursuant to any applicable joint operating agreement burdening the Assets); 
 (iii) the value of all Hydrocarbons produced
from or attributable to the Properties prior to the Effective Time that are in storage to the bottom of the flange prior to sale and that are upstream of the sales metering point as of the Closing Date; 

(iv) the net amount of any Imbalances as of the Effective Time, if such net amount is positive, with the value to be based upon
the sales price as of the Effective Time under the applicable marketing or sales contract; and 
 (v) any other amount
provided for in this Agreement or agreed upon by Sellers and Buyer. 
 (b) At the Closing, the Purchase Price shall be
decreased, as set forth in the Closing Statement, in the following amounts: 
 (i) except for any Excluded Asset, the amount
of all proceeds received by Sellers with respect to the Assets conveyed at Closing that are attributable to the period of time from and after the Effective Time (but in no event including Hydrocarbons produced prior to the Effective Time); 

(ii) the Allocated Value of any Assets removed from the transaction pursuant to Section 4.01 or 4.02; 

(i) the net amount of any Imbalances as of the Effective Time, if such net amount is negative, with the value to be based upon
the sales price as of the Effective Time under the applicable marketing or sales contract; and 
 (iii) any other amount
provided for in this Agreement or agreed upon by Sellers and Buyer. 
 (c) Buyer shall prepare within sixty (60) days
after the Closing Date and furnish to Sellers a final accounting statement setting forth the adjustments and pro-rating of any amounts provided for in this Article IX or elsewhere in this Agreement (the “Final Accounting
Statement”) together with reasonable supporting documentation. Sellers shall within five (5) days after receipt of the Final Accounting Statement deliver to Buyer a written report (together with reasonable supporting documentation)
containing any changes that Sellers propose be made to such Final Accounting Statement (the “Dispute Notice”). The Parties shall undertake to agree on the final adjustment amounts and such final adjustment amounts shall be paid by
Buyer or Sellers, as appropriate, not later than five (5) days after such agreement. 
 (d) If Sellers and Buyer are
unable to resolve the matters addressed in the Dispute Notice, each of Buyer and Sellers shall, within ten (10) Business Days after the delivery of such Dispute Notice, summarize its position with regard to such dispute in a written document of
ten pages or less and submit such summaries to the Bankruptcy Court, together with the Dispute Notice, the Final Accounting Statement and any other documentation such Party may desire to submit. Any decision rendered by the Bankruptcy Court pursuant
hereto shall be final, conclusive and binding on Sellers and Buyer and will be enforceable against any of the Parties in any court of competent jurisdiction, and such final adjustment amounts shall be paid by Buyer or Sellers, as appropriate, not
later than five (5) days after such decision. 

  
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 Section 9.03 Actions of Sellers at Closing. At the Closing, Sellers shall: 

(a) execute and deliver to Buyer executed and notarized assignments, substantially in the form of Exhibit C (the
“Assignments”), in sufficient counterparts to facilitate recording in the applicable counties and parishes relating to the Assets held of record or beneficially by Sellers or any of Sellers’ Affiliates, and such other
instruments, in form and substance mutually agreed upon by Buyer and Sellers, as may be necessary or desirable to convey ownership, title and possession of the Assets to Buyer free and clear of all Liens; 

(b) deliver to Buyer on forms prepared by Buyer and reasonably acceptable to Sellers transfer orders or letters in lieu thereof
directing all purchasers of production to make payment to Buyer of proceeds attributable to production from the Assets from and after the Effective Time, for delivery by Buyer to the purchasers of production; 

(c) deliver an executed Certificate of Non-Foreign Status in the form attached as Exhibit E; 

(d) deliver to Buyer, as applicable, change of operator forms executed by Sellers naming Buyer as the new operator; 

(e) execute and deliver to Buyer Texas Comptroller Form 01-917, Statement of Occasional Sale; 

(f) deliver to Buyer counterpart signed by Dune Energy, Inc. of the agreement between Dune Energy, Inc. and Parallel Resource
Partners, LLC., terminating the Confidentiality Agreement dated March 9, 2015, between Dune Energy, Inc. and Parallel Resource Partners, LLC, as of the Closing Date, (such agreement to be in a form reasonably satisfactory to Sellers and Buyer);

 (g) deliver to Buyer counterpart signed by Dune Energy, Inc. of the agreement between Dune Energy, Inc. and Buyer,
terminating the Confidentiality Agreement dated June 16, 2014 between Dune Energy, Inc. and Buyer, as of the Closing Date, (such agreement to be in a form reasonably satisfactory to Sellers and Buyer); and 

(h) execute and deliver any other agreements that are provided for herein or are necessary or desirable to effectuate the
transactions contemplated hereby. 
 Section 9.04 Actions of Buyer at Closing. At the Closing, Buyer shall: 

(a) deliver to the Escrow Agent written instruction, in accordance with the terms of the Escrow Agreement, to release the
Earnest Money to Sellers by wire transfer; 

  
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 (b) deliver to Sellers by wire transfer as set forth in Section 3.01
an amount equal to the Adjusted Purchase Price less the Earnest Money; 
 (c) deliver to Sellers a certificate executed by
the Chief Financial Officer of Buyer, dated as of the Closing Date, attaching, and certifying on behalf of Buyer, complete and correct copies of (A) the resolutions of the Board of Directors of Buyer authorizing the execution, delivery, and
performance by Buyer of this Agreement and the transactions contemplated hereby and (B) any required approval by Buyer’s Board of Directors of this Agreement and the transactions contemplated hereby; 

(d) deliver to Sellers notarized counterparts of the Assignments executed by Buyer; 

(e) deliver to Sellers counterpart signed by Parallel Resource Partners, LLC, of the agreement between Dune Energy, Inc. and
Parallel Resource Partners, LLC, terminating the Confidentiality Agreement dated March 9, 2015, between Dune Energy, Inc. and Parallel Resource Partners, LLC, as of the Closing Date, (such agreement to be in a form reasonably satisfactory to
Sellers and Buyer); 
 (f) deliver to Sellers counterpart signed by Buyer of the agreement between Dune Energy, Inc. and
Buyer, terminating the Confidentiality Agreement dated June 16, 2014 between Dune Energy, Inc. and Buyer, as of the Closing Date, (such agreement to be in a form reasonably satisfactory to Sellers and Buyer); and 

(g) execute, acknowledge and deliver any other agreements provided for herein or necessary or desirable to effectuate the
transactions contemplated hereby. 
 ARTICLE X. CERTAIN POST-CLOSING OBLIGATIONS 

Section 10.01 Operation of the Assets After Closing. It is expressly understood and agreed that neither Sellers nor any of their
Affiliates shall be obligated to continue operating any of the Assets, or to provide any support services relating thereto, upon and after the Closing and Buyer hereby assumes full responsibility for operating (or causing the operation of) all
Assets upon and after the Closing. Sellers and Buyer shall execute, and Buyer shall promptly file, change of operator regulatory forms as may be required with the appropriate Governmental Authority. For thirty (30) days after the Closing Date,
Sellers agree to reasonably cooperate (without any obligation to expend money) with Buyer following Closing to assist Buyer in its efforts to be named successor operator with respect to the Assets. 

Section 10.02 Files. Sellers shall make the Files available for pickup by Buyer immediately after the Closing and Buyer shall pick
up such Files on such date or within three (3) Business Days thereafter; provided, however, that Sellers, at their own expense, may retain a copy of such Files. 

Section 10.03 Financial Records and Access to Information. For a period of up to six (6) months following the Closing Date,
Sellers shall make the Financial Records available to Buyer and its representatives at Sellers’ offices, and shall provide Buyer with reasonable access, at reasonable times and upon prior notice, and at no cost to Sellers, to (i) the
employees of Sellers associated with the preparation of those Financial Records for purposes of performing Buyer’s audits and financial and tax filings required by a Governmental Authority, and (ii) a photocopier in order that Buyer may
make and retain copies of the Financial Records. 
 Section 10.04 Further Cooperation. After the Closing, and subject to the
terms and conditions of this Agreement, each Party, at the request of the other and without additional consideration, 

  
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shall execute and deliver, or shall cause to be executed and delivered from time to time, such further instruments of conveyance and transfer and shall take such other action as the other Party
may reasonably request to convey and deliver the Assets to Buyer in the manner contemplated by this Agreement. After the Closing, the Parties will cooperate to have all proceeds received attributable to the Assets paid to the proper Party hereunder
and to have all expenditures to be made with respect to the Assets made by the proper Party hereunder. Buyer is authorized to prosecute any claims constituting Assets. 

Section 10.05 Document Retention. 

(a) Inspection. Subject to the provisions of Section 10.03, Buyer agrees, and will cause its respective
assigns to agree, that the Files shall be open for inspection by representatives of Sellers at reasonable times and upon reasonable notice during regular business hours for a period of four (4) years following the Closing Date (or for such
longer period as may be required by Law or Governmental Authorities) and that Sellers may, during such period and at its expense, make such copies thereof as it may reasonably request. 

(b) Destruction. Without limiting the generality of the foregoing, for a period of four (4) years after the Closing
Date (or for such longer period as may be required by Law or by Governmental Authorities), Buyer shall not, and shall cause its respective assigns to agree that they shall not, destroy or give up possession of any original or final copy of the Files
without first offering Sellers the opportunity, at Sellers’ expense (without any payment to Buyer), to obtain such original or final copy or a copy thereof. 

Section 10.06 Suspense Accounts. At Closing, Sellers shall transfer or cause to be transferred to Buyer all funds held by Sellers
in suspense related to proceeds of production and attributable to Third Parties’ interests in the Properties or Hydrocarbon production from the Properties, including funds suspended awaiting minimum disbursement requirements, funds suspended
under division orders and funds suspended for title and other defects. Buyer agrees to administer all such accounts and assume all payment obligations relating to such funds in accordance with all applicable Laws, rules and regulations and shall be
liable for the payment thereof to the proper parties and such obligations shall become part of the Assumed Obligations. 
 ARTICLE XI.
TERMINATION 
 Section 11.01 Right of Termination. This Agreement and the transactions contemplated hereby may be completely
terminated at any time at or prior to the Closing: 
 (a) by mutual written consent of the Parties; 

(b) by Sellers, by written notice to Buyer, at Sellers’ option, if any of the conditions set forth in
Section 8.01 or Section 8.03 is not satisfied and is incapable of being satisfied at or prior to the Outside Date; 

(c) by Buyer, by written notice to Sellers, at Buyer’s option, if any of the conditions set forth in
Section 8.02 or Section 8.03 is not satisfied and is incapable of being satisfied at or prior to the Outside Date; 

(d) by either Party, by written notice to the other, if the sum of all reductions to the Purchase Price pursuant to
Sections 4.01, 4.02, and 8.01(d), exceeds twenty percent (20%) of the unadjusted Purchase Price; 

  
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 (e) by either Party, by written notice to the other Party, if the Bankruptcy
Court enters a Final Order following Sellers’ acceptance of a Bid from a Successful Bidder from a Person other than Buyer (an “Alternative Transaction”) or a Final Order confirming any plan of reorganization of Sellers under
the Bankruptcy Code (other than pursuant to this Agreement); provided that Buyer agrees to serve as the Backup Successful Bidder if it is selected as the next highest and best Bid for any particular Assets after the Successful Bidder is determined
in accordance with the Bidding Procedures, in which event Buyer’s Bid shall remain open and irrevocable until thirty (30) days after the entry of an order by the Court approving a definitive agreement providing for the sale of such Assets.

 (f) by either Party, by written notice to the other Party, if the Closing does not occur on or prior to the Outside Date;
provided, however, that the right to terminate this Agreement under this Section 11.01(f) shall not be available to any Party whose breach of a representation or warranty in this Agreement or whose action or failure to act in breach of
this Agreement has been a principal cause or resulted in the failure of the Closing to occur on or before such date; 
 (g)
by either Party, by written notice to the other Party, if the Bankruptcy Case is dismissed or converted to a case under Chapter 7 of the Bankruptcy Code; or 

(h) by Buyer, by written notice to Sellers, if the Bankruptcy Court materially modifies this Agreement with respect to any of
Buyer’s rights or obligations hereunder. 
 Section 11.02 Effect of Termination; Earnest Money. 

(a) In the event that the Closing does not occur as a result of either Party exercising its right not to close pursuant to
Section 11.01, then, except for the provisions of Section 1.01, Section 1.02, Article XI, Section 12.06, Section 12.08, Article XIII and Article XIV (other than
Section 14.01, Section 14.02, and Section 14.03), this Agreement shall thereafter be null and void and neither Party shall have any rights or obligations under this Agreement. 

(b) In the event of termination of this Agreement by Sellers pursuant to (i) Section 11.01(b), and the passage
of the Outside Date without the occurrence of the Closing was due to (A) the failure of any condition to Closing set forth in Section 8.01 to be satisfied as of that date or (B) Buyer’s refusal or inability to close
notwithstanding the satisfaction of the conditions precedent set forth in Section 8.02 and Section 8.03 or (ii) Section 11.01(f), due to (A) Buyer’s breach of a representation or warranty in this
Agreement or (B) Buyer’s action or failure to act in breach of this Agreement, and the event described in (A) or (B) has been the principal cause or resulted in the failure of the Closing to occur on or before the Outside Closing
Date, then Sellers shall be entitled to receive and retain immediately the Earnest Money as liquidated damages (and not as a penalty). THE PARTIES RECOGNIZE THAT THE ACTUAL DAMAGES FOR SUCH CIRCUMSTANCES WOULD BE DIFFICULT OR IMPOSSIBLE TO
ASCERTAIN WITH REASONABLE CERTAINTY BECAUSE OF THE UNIQUE NATURE OF THIS AGREEMENT, THE UNIQUE NATURE OF THE ASSETS, THE UNCERTAINTIES OF APPLICABLE COMMODITY MARKETS AND DIFFERENCES OF OPINION WITH RESPECT TO SUCH MATTERS, AND THAT THE LIQUIDATED
DAMAGES PROVIDED FOR HEREIN IS A REASONABLE ESTIMATE BY THE PARTIES OF SUCH DAMAGES UNDER SUCH CIRCUMSTANCES AND DO NOT CONSTITUTE A PENALTY. Accordingly, the Parties hereby agree that, in the event that this Agreement is terminated in the
circumstances described above in this Section 11.02(b), as applicable, the sole and exclusive remedy of Sellers and any of their Affiliates against Buyer and any of its Affiliates, and any of their respective former, current and future
shareholders, members, 

  
 36 

 
managers, partners, representatives and financing sources and each of the foregoing’s respective successors and assigns, based upon, arising out of, or related to this Agreement and the
transactions contemplated hereby shall be to receive as from the Escrow Agent the Earnest Money pursuant to this Section 11.02(b), as liquidated damages, and Sellers shall have no other remedy. The Parties acknowledge and agree that the
agreements set forth in this Section 11.02(b) are an integral part of the transactions contemplated hereby, and without such agreements, the Parties would not have entered into this Agreement. 

(c) If this Agreement is terminated for any reason other than as provided in Section 11.02(b), then within three
(3) days following such termination, Sellers and Buyer shall instruct the Escrow Agent to disburse the Earnest Money and all interest earned thereon to Buyer and to close the Escrow Account. 

(d) In the event of the passage of the Outside Date without the occurrence of the Closing due to (i) the failure of any
condition to Closing set forth in Section 8.02 to be satisfied as of that date or (ii) Sellers’ refusal or inability to close notwithstanding the satisfaction of the conditions precedent set forth in Section 8.01
and Section 8.03, then Buyer may, at its option, in lieu of delivering any notice of termination as otherwise permitted to do so under this Agreement, notify and advise the Bankruptcy Court that Buyer desires the Bankruptcy Court to
enforce specifically this Agreement, in which event the Bankruptcy Court shall so order and compel such specific performance of this Agreement. 

(e) NOTWITHSTANDING ANYTHING TO THE CONTRARY IN THIS AGREEMENT, IN NO EVENT SHALL EITHER PARTY BE ENTITLED TO RECEIVE ANY
INDIRECT, CONSEQUENTIAL, PUNITIVE OR EXEMPLARY DAMAGES, OR DAMAGES FOR LOST PROFITS OF ANY KIND OR LOSS OF BUSINESS OPPORTUNITY. 

ARTICLE XII. ASSUMPTION AND INDEMNIFICATION 

Section 12.01 Assumption and Indemnity. As of the Closing, Buyer assumes and agrees to pay, perform and discharge, or cause to be
paid, performed, and discharged, the following obligations and Liabilities with respect to the Assets: 
 (a) all obligations
(whether arising by Law or by contract) to properly plug, replug and abandon all Wells and dismantle, cap and bury all associated flow lines associated with the Assets, decommission or remove all personal property, fixtures and related equipment now
located on the land covered by or attributable to the Properties or other Assets or hereafter placed thereon, and all such obligations to cleanup and restore such lands; 

(b) all Production Taxes allocable to Buyer pursuant to Section 2.04 (except to the extent any such Production Tax
is economically borne by Buyer pursuant to the application of Section 9.02(a)(i)); 
 (c) all Liabilities
relating in any way to the Assets (including Seller’s operation of such Assets at any time) arising under Environmental Law or arising from, attributable to or alleged to be arising from or attributable to, a violation of or the failure to
perform any obligation imposed by any Environmental Law or otherwise relating to the environmental condition of the Assets; FOR AVOIDANCE OF DOUBT, BUYER’S ASSUMPTION, AND AGREEMENT TO PAY, PERFORM OR DISCHARGE SUCH LIABILITIES APPLIES
REGARDLESS OF WHETHER THE LIABILITIES ARE THE RESULT OF: (i) STRICT LIABILITY, (ii) THE 

  
 37 

 
VIOLATION OF ANY LAW BY ANY PERSON INCLUDING SELLER OR BY A PRE-EXISTING CONDITION OR (iii) THE SOLE, CONCURRENT OR COMPARATIVE NEGLIGENCE OF ANY PERSON INCLUDING SELLER; 

(d) all obligations to settle any Imbalances; 

(e) all Liabilities and obligations, except for Operating Expenses, with respect to the Leases and Contracts arising on or
after the Petition Date, and all Operating Expenses with respect to the Leases and Contracts arising on or after the Effective Time; and 

(f) the Contract Cure Amounts (even though one or more of such Contract Cure Amounts may have arisen prior to the Petition
Date). 
 All such assumed obligations and Liabilities described above in this Section 12.01 are collectively referred to herein as the
“Assumed Obligations.” Provided, however, for the avoidance of doubt and notwithstanding anything contained to the contrary in this Agreement, Assumed Obligations do not include any obligations or Liabilities, and Buyer expressly
does not assume any obligations or Liabilities, related to, pertaining to, or arising in connection with, any of the following: 
  

	 	(i)	Excluded Assets; 

  

	 	(ii)	any and all rights, titles, interests, obligations and Liabilities of Sellers in any oil and gas properties, other real or personal properties, or Material Contracts, not included in the definition of Assets in this
Agreement, or otherwise not being conveyed to, or acquired or assumed by, Buyer, pursuant to this Agreement; 

  

	 	(iii)	any and all rights, titles, interests, obligations and Liabilities of Sellers in any Contract insofar as such Contract applies to oil and gas properties or other real or personal properties not included in the
definition of Assets in this Agreement, or otherwise not being conveyed to, or acquired or assumed by, Buyer, pursuant to this Agreement; 

  

	 	(iv)	unless and except to the extent included in Contract Cure Amounts, if at all, failure to pay or the incorrect payment to any royalty owner, overriding royalty owner, working interest owner or other interest holder under
the Properties and/or Units insofar as the same are attributable to periods and oil, gas and other minerals produced and marketed prior to the Effective Time; 

  

	 	(v)	unless and except to the extent included in Section 12.01(e) above, if at all, bodily injury or death arising from operations on the Assets prior to the Effective Time; 

 

	 	(vi)	unless and except to the extent included in Sections 12.01(a), (c), (d), (e), and (f) above, ownership or operation of the Assets, prior to the Effective Time; 

 

	 	(vii)	Income Taxes imposed on, or incurred by, Sellers and any Production Taxes, which are the obligation of the Sellers pursuant to Section 6.11(a).; and 

 

	 	(viii)	unless and except to the extent included in Sections 12.01(a), (b), (c), (d), (e), and (f) above, Liabilities and obligations attributable or otherwise related to the
Assets arising and attributable to periods before the Effective Time. 

  
 38 

 Section 12.02 Indemnification by Buyer. Effective as of Closing, Buyer hereby
defends, releases, indemnifies and holds harmless the Seller Indemnitees from and against any and all Liabilities caused by, arising from, attributable to or alleged to be caused by, arising from or attributable to (a) any Assumed Obligation or
(b) the breach by Buyer of any of its representations, warranties, covenants or agreements contained in this Agreement. 

Section 12.03 Buyer’s Environmental Indemnification. Notwithstanding anything herein to the contrary, in addition to the
indemnities set forth in Section 12.02, effective as of the Closing, Buyer and its successors and assigns shall assume (as part of the Assumed Obligations), be responsible for, shall pay on a current basis and defend, indemnify, hold
harmless and forever release the Seller Indemnitees from and against any and all Liabilities arising from, based upon, related to or associated with (a) any environmental condition or other environmental matter related or attributable to the
Assets, (b) Hazardous Substances, including NORM or (c) Environmental Law including any violation or alleged violation thereof, regardless of whether such Liabilities arose prior to, on or after the Effective Time, including the presence,
disposal or removal of any Hazardous Substances, NORM, pollutant, contaminant, or hazardous or toxic substance, waste or material of any kind regulated under any Environmental Law in, on or under the Assets or other property (whether neighboring or
otherwise) and including any Liability of any Seller Indemnitees with respect to the Assets under any Environmental Laws, including the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. §§ 9601 et. seq.), the
Resource Conservation and Recovery Act (42 U.S.C. § 6901 et. seq.), the Clean Water Act (33 U.S.C. §§ 466 et. seq.), the Safe Drinking Water Act (14 U.S.C. §§ 1401-1450), the Hazardous Materials Transportation Act (49 U.S.C.
§§ 1801 et. seq.), the Toxic Substance Control Act (15 U.S.C. §§ 2601-2629), the Clean Air Act (42 U.S.C. § 7401 et. seq.), the Oil Pollution Act (33 U.S.C. § 2701 et. seq.), any and all amendments to the foregoing, and
all state and local Environmental Laws. 
 Section 12.04 Negligence and Fault. THE DEFENSE, RELEASE, INDEMNIFICATION AND HOLD
HARMLESS OBLIGATIONS SET FORTH IN THIS AGREEMENT SHALL ENTITLE THE INDEMNITEE TO SUCH DEFENSE, RELEASE, INDEMNIFICATION AND HOLD HARMLESS HEREUNDER IN ACCORDANCE WITH THE TERMS HEREOF, REGARDLESS OF WHETHER THE CLAIM GIVING RISE TO SUCH OBLIGATION
IS THE RESULT OF: (A) STRICT LIABILITY (INCLUDING UNDER ENVIRONMENTAL LAW), (B) THE VIOLATION OF ANY LAW BY SUCH INDEMNITEE OR BY A PRE-EXISTING CONDITION, OR (C) THE SOLE, CONCURRENT OR COMPARATIVE NEGLIGENCE OF SUCH INDEMNITEE, BUT
IN ALL INSTANCES EXCLUDING THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH INDEMNITEE. THE PARTIES ACKNOWLEDGE AND AGREE THAT THE PROVISIONS OF ANY ANTI-INDEMNITY STATUTE RELATING TO OILFIELD SERVICES AND ASSOCIATED ACTIVITIES SHALL NOT BE
APPLICABLE TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY. 
 Section 12.05 Exclusive Remedy. From and after Closing,
except for the rights of the Parties expressly set forth herein, each of the Parties acknowledges and agrees that its sole and exclusive remedy with respect to any and all Liabilities pursuant to or in connection with this Agreement, the purchase of
the Assets by Buyer and the sale of the Assets by Sellers, arising from or related to environmental matters or Environmental Law or otherwise in connection with the transactions contemplated hereby shall be limited to the indemnification provisions
set forth in this Agreement, if any. Except for the rights of the Parties expressly set forth in this Agreement, effective as of Closing, Buyer, on its own behalf and on behalf of its Affiliates, hereby releases, remises and forever discharges
Sellers and their Affiliates and all such parties’ shareholders, partners, members, board of directors and/or supervisors, officers, employees, agents and representatives from any and all suits, legal or administrative proceedings, claims,
demands, damages, losses, costs, Liabilities, interest or causes of action whatsoever, at Law or in equity, known or unknown, which Buyer or its Affiliates might now or subsequently may have, based on, relating to or

  
 39 

 
arising out of this Agreement, the transactions contemplated hereby, the ownership, use or operation of the Assets or the condition, quality, status or nature of the Assets, including rights to
contribution under the Comprehensive Environmental Response, Compensation, and Liability Act (42 U.S.C. § 9601 et. seq.), breaches of statutory or implied warranties, nuisance or other tort actions, rights to punitive damages, common law rights
of contribution and rights under insurance maintained by Sellers or any of their Affiliates. 
 Section 12.06 Expenses.
Notwithstanding anything herein to the contrary, the foregoing defense, release, indemnity and hold harmless obligations shall not apply to, and each Party shall be solely responsible for, all expenses, including due diligence expenses, incurred by
it to enter into, and consummate the transactions contemplated by, this Agreement. 
 Section 12.07 Survival. The
representations and warranties of Sellers in Article V shall terminate upon the Closing. Unless terminating earlier in accordance with their terms, the covenants and agreements of Sellers shall terminate upon the determination of the Final
Accounting Statement in accordance with Section 9.02(c) or Section 9.02(d), as applicable. The representations and warranties of Buyer in Article V (other than the representations in Section 5.02(a) –
(d) and (g)) shall survive the Closing for a period of eighteen (18) months. Subject to the foregoing, the remainder of this Agreement shall survive the Closing without time limit. Representations, warranties, covenants and
agreements shall be of no further force and effect after the date of their expiration; provided, however, that there shall be no termination of any bona fide claim asserted pursuant to this Agreement with respect to such a representation, warranty,
covenant or agreement prior to its expiration date. 
 Section 12.08 Non-Compensatory Damages. None of the Buyer Affiliates nor
the Sellers Indemnitees shall be entitled to recover from Sellers or Buyer, or their respective Affiliates, any indirect, consequential, punitive or exemplary damages or damages for lost profits of any kind or loss of business opportunity arising
under or in connection with this Agreement or the transactions contemplated hereby. Subject to the preceding sentence, Buyer, on behalf of each of the Buyer Affiliates, and Sellers, on behalf of each of the Sellers Indemnitees, waive any right to
recover punitive, special, exemplary and consequential damages, including damages for lost profits or loss of business opportunity, arising in connection with or with respect to this Agreement or the transactions contemplated hereby. 

Section 12.09 Indemnification Actions. All claims for indemnification under this Article XII by Sellers or any Sellers
Indemnitee shall be asserted and resolved as follows: 
 (a) For purposes of this Agreement, the term
“Indemnitee” when used in connection with particular damages shall mean a Sellers Indemnitee having the right to be indemnified with respect to such damages pursuant to this Agreement. 

(b) To make claim for indemnification under this Article XII, an Indemnitee shall notify Buyer of its claim, including
the specific details of and specific basis under this Agreement for its claim (the “Claim Notice”). In the event that the claim for indemnification is based upon a claim by a Third Party against the Indemnitee (a
“Claim”), the Indemnitee shall provide its Claim Notice promptly after the Indemnitee has actual knowledge of the Claim and shall enclose a copy of all papers (if any) served with respect to the Claim; provided that the failure of
any Indemnitee to give notice of a Claim as provided in this Section 12.09 shall not relieve Buyer of its obligations under this Article XII except to the extent (and only to the extent of such incremental damages incurred) such
failure results in insufficient time being available to permit Buyer to effectively defend against the Claim or otherwise prejudices Buyer’s ability to defend against the Claim. In the event that the claim for indemnification is based upon an
inaccuracy or breach of a representation, warranty, covenant or agreement, the Claim Notice shall specify the representation, warranty, covenant or agreement that was inaccurate or breached. 

  
 40 

 (c) In the case of a claim for indemnification based upon a Claim, Buyer shall
have thirty (30) days from its receipt of the Claim Notice to notify the Indemnitee whether or not it agrees to indemnify and defend the Indemnitee against such Claim under this Article XII. The Indemnitee is authorized, prior to and
during such thirty (30) day period, to file any motion, answer or other pleading that it shall deem necessary or appropriate to protect its interests or those of Buyer and that is not prejudicial to Buyer. 

(d) If Buyer agrees to indemnify the Indemnitee, it shall have the right and obligation to diligently defend, at its sole cost
and expense, the Claim. Buyer shall have full control of such defense and proceedings, including any compromise or settlement thereof, subject to the terms hereof. If requested by Buyer, the Indemnitee agrees to cooperate in contesting any Claim
which Buyer elects to contest (provided, however, that the Indemnitee shall not be required to bring any counterclaim or cross-complaint against any Person). The Indemnitee may participate in, but not control, at its sole cost and expense, any
defense or settlement of any Claim controlled by Buyer pursuant to this Section 12.09. Buyer shall not, without the written consent of the Indemnitee, such consent not to be unreasonably withheld, conditioned or delayed, settle any Claim
or consent to the entry of any judgment with respect thereto that (i) does not result in a final resolution of the Indemnitee’s Liability with respect to the Claim (including, in the case of a settlement, an unconditional written release
of the Indemnitee from all Liability in respect of such Claim) or (ii) may materially and adversely affect the Indemnitee (other than as a result of money damages covered by the indemnity). 

(e) If Buyer does not agree to indemnify the Indemnitee within the thirty (30) day period specified in
Section 12.09(c) or fails to give notice to the Indemnitee within such thirty (30) day period regarding its election or if Buyer agrees to indemnify, but fails to diligently defend or settle the Claim, then the Indemnitee shall have
the right to defend against the Claim (at the sole cost and expense of Buyer, if the Indemnitee is entitled to indemnification hereunder), with counsel of the Indemnitee’s choosing; provided, however, that the Indemnitee shall make no
settlement, compromise, admission or acknowledgment that would give rise to Liability on the part of any Buyer without the prior written consent of such Buyer, which consent shall not be unreasonably withheld, conditioned or delayed. 

(f) In the case of a claim for indemnification not based upon a Claim, Buyer shall have thirty (30) days from its receipt
of the Claim Notice to (i) cure the damages complained of, (ii) agree to indemnify the Indemnitee for such damages, or (iii) dispute the claim for such damages. If Buyer does not respond to such Claim Notice within such thirty
(30) day period, Buyer will be deemed to dispute the claim for damages. 
 Section 12.10 Characterization of Indemnity
Payments. The Parties agree that any indemnity payments made pursuant to this Article XII shall be treated for all Tax purposes as an adjustment to the Purchase Price unless otherwise required by Law. 

ARTICLE XIII. DISCLAIMERS OF REPRESENTATIONS AND WARRANTIES 

(a) EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN Section 5.01 OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER
DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT THE CLOSING, (I) SELLERS MAKE NO REPRESENTATIONS OR WARRANTIES, EXPRESS, STATUTORY OR IMPLIED AND (II) 

  
 41 

 
SELLERS EXPRESSLY DISCLAIM ALL LIABILITY AND RESPONSIBILITY FOR ANY REPRESENTATION, WARRANTY, STATEMENT OR INFORMATION MADE OR COMMUNICATED (ORALLY OR IN WRITING) TO BUYER OR ANY OF ITS
AFFILIATES, EMPLOYEES, AGENTS, CONSULTANTS OR REPRESENTATIVES (INCLUDING, WITHOUT LIMITATION, ANY OPINION, INFORMATION, PROJECTION OR ADVICE THAT MAY HAVE BEEN PROVIDED TO BUYER BY ANY OFFICER, DIRECTOR, SUPERVISOR, EMPLOYEE, AGENT, CONSULTANT,
REPRESENTATIVE OR ADVISOR OF SELLERS OR ANY OF ITS AFFILIATES). 
 (b) EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN
Section 5.01 OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT THE CLOSING, AND WITHOUT LIMITING THE GENERALITY OF THE FOREGOING, SELLERS EXPRESSLY DISCLAIM ANY REPRESENTATION OR WARRANTY,
EXPRESS, STATUTORY OR IMPLIED, AS TO (I) TITLE TO OR ANY LIENS OR ENCUMBRANCES AFFECTING ANY OF THE ASSETS, (II) THE CONTENTS, CHARACTER OR NATURE OF ANY REPORT OF ANY PETROLEUM ENGINEERING CONSULTANT, OR ANY ENGINEERING, GEOLOGICAL OR SEISMIC
DATA OR INTERPRETATION, RELATING TO THE ASSETS, (III) THE QUANTITY, QUALITY OR RECOVERABILITY OF HYDROCARBONS IN OR FROM THE ASSETS, (IV) ANY ESTIMATES OF THE VALUE OF THE ASSETS OR FUTURE REVENUES GENERATED BY THE ASSETS, (V) THE PRODUCTION OF
HYDROCARBONS FROM THE ASSETS, (VI) THE MAINTENANCE, REPAIR, CONDITION, QUALITY, SUITABILITY, DESIGN OR MARKETABILITY OF THE ASSETS, (VII) THE CONTENT, CHARACTER OR NATURE OF ANY INFORMATION (FINANCIAL OR OTHERWISE), MEMORANDUM, REPORTS, BROCHURES,
CHARTS OR STATEMENTS PREPARED BY SELLERS OR THIRD PARTIES WITH RESPECT TO THE ASSETS, (VIII) ANY OTHER MATERIALS OR INFORMATION THAT MAY HAVE BEEN MADE AVAILABLE TO BUYER, ITS AFFILIATES OR THEIR EMPLOYEES, AGENTS, CONSULTANTS, REPRESENTATIVES OR
ADVISORS IN CONNECTION WITH THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY DISCUSSION OR PRESENTATION RELATING THERETO, AND (IX) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM PATENT OR TRADEMARK INFRINGEMENT. 

(c) EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN Section 5.01 OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER
DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT THE CLOSING, SELLERS EXPRESSLY DISCLAIM AND NEGATE, AND BUYER HEREBY WAIVES (I) ANY IMPLIED OR EXPRESS WARRANTY OF MERCHANTABILITY, (II) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR
PURPOSE, (III) ANY IMPLIED OR EXPRESS WARRANTY OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (IV) ANY RIGHTS OF PURCHASERS UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF CONSIDERATION, AND (V) ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER
APPLICABLE LAW; IT BEING THE EXPRESS INTENTION OF BOTH BUYER AND SELLERS THAT, EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN Section 5.01 OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT
THE CLOSING, THE ASSETS SHALL BE CONVEYED TO BUYER IN THEIR PRESENT CONDITION AND STATE OF REPAIR, “AS IS” AND “WHERE IS,” WITH ALL FAULTS, AND THAT BUYER HAS MADE OR SHALL MAKE PRIOR TO CLOSING SUCH INSPECTIONS AS BUYER DEEMS
APPROPRIATE. 

  
 42 

 (d) EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN Section 5.01
OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT THE CLOSING, SELLERS HAVE NOT AND WILL NOT MAKE ANY REPRESENTATION OR WARRANTY REGARDING ANY MATTER OR CIRCUMSTANCE RELATING TO ENVIRONMENTAL LAWS, THE
RELEASE OF MATERIALS INTO THE ENVIRONMENT, THE PROTECTION OF HUMAN HEALTH, SAFETY, NATURAL RESOURCES OR THE ENVIRONMENT OR ANY OTHER ENVIRONMENTAL CONDITION OF THE ASSETS, AND NOTHING IN THIS AGREEMENT OR OTHERWISE SHALL BE CONSTRUED AS SUCH A
REPRESENTATION OR WARRANTY. EXCEPT AS AND TO THE EXTENT EXPRESSLY SET FORTH IN Section 5.01 OF THIS AGREEMENT, THE ASSIGNMENTS, AND OTHER DOCUMENTS EXECUTED AND DELIVERED BY SELLERS AT THE CLOSING, UPON CLOSING, BUYER SHALL BE DEEMED TO
BE TAKING THE ASSETS “AS IS” AND “WHERE IS,” WITH ALL FAULTS FOR PURPOSES OF THEIR ENVIRONMENTAL CONDITION, AND BUYER ACKNOWLEDGES IT HAS MADE OR CAUSED TO BE MADE SUCH ENVIRONMENTAL INSPECTIONS AS BUYER DEEMS APPROPRIATE.] 

(e) AS PARTIAL CONSIDERATION FOR THIS AGREEMENT, EACH PARTY HEREBY EXPRESSLY WAIVES THE PROVISIONS OF THE TEXAS DECEPTIVE TRADE
PRACTICES CONSUMER PROTECTION ACT, ARTICLES 17.41 ET SEQ. OF THE TEXAS BUSINESS & COMMERCE CODE, OTHER THAN ARTICLE 17.555 WHICH IS NOT WAIVED, AND ALL OTHER CONSUMER PROTECTION LAWS OF THE STATE OF TEXAS, OR ANY OTHER STATE, THAT MAY BE
WAIVED BY THE PARTIES TO THE EXTENT PERMITTED BY APPLICABLE LAW. 
 (f) SELLERS AND BUYER AGREE THAT THE DISCLAIMERS OF
CERTAIN WARRANTIES CONTAINED IN THIS Article XIII ARE “CONSPICUOUS” DISCLAIMERS FOR THE PURPOSES OF ANY APPLICABLE LAW, RULE OR ORDER. 

ARTICLE XIV. MISCELLANEOUS 

Section 14.01 Filings, Notices and Certain Governmental Approvals. As soon as reasonably possible after the Closing, but in no
event later than thirty (30) days after such Closing, unless otherwise consented to in writing by Sellers, Buyer shall remove the names of Sellers and their Affiliates, and all variations thereof, from the Assets. Promptly after Closing, Buyer
shall make all requisite filings with, and provide the requisite notices to, the appropriate Governmental Authorities to accomplish all transactions contemplated by this Agreement. 

Section 14.02 Entire Agreement. This Agreement, the documents to be executed pursuant hereto and the exhibits and schedules
attached hereto constitute the entire agreement between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations and discussions, whether oral or written, of the Parties pertaining to the
subject matter hereof. No supplement, amendment, alteration, modification, waiver or termination of this Agreement shall be binding unless executed in writing by the Parties and specifically referencing this Agreement as being supplemented, amended,
altered, modified, waived or terminated. 
 Section 14.03 Waiver. No waiver of any of the provisions of this Agreement or rights
hereunder shall be deemed or shall constitute a waiver of any other provisions hereof or right hereunder (whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided. 

  
 43 

 Section 14.04 Publicity. Each Party shall consult with the other Party prior to
making any public release concerning this Agreement or the transactions contemplated hereby and, except as required by applicable Law or by any Governmental Authority or stock exchange, no Party shall issue any such release without the prior written
consent of the other Party, which consent shall not be unreasonably withheld or delayed. 
 Section 14.05 No Third Party
Beneficiaries. Except with respect to the Persons included within the definition of Sellers Indemnitees (and in such cases, only to the extent expressly provided herein), nothing in this Agreement shall provide any benefit to any Third Party or
entitle any Third Party to any claim, cause of action, remedy or right of any kind, it being the intent of the Parties that this Agreement shall not be construed as a Third Party beneficiary contract. 

Section 14.06 Assignment. No Party shall assign all or any part of this Agreement, nor shall any Party assign or delegate any of
its rights or duties hereunder without the prior written consent of the other Party, provided that Buyer shall be permitted, without Sellers’ consent, to assign its rights and obligations under this Agreement to an Affiliate of Buyer or an
Affiliate of Parallel Resource Partners, LLC. Any assignment made by either Party as permitted hereby shall not relieve such Party from any Liability or obligation hereunder. Except as otherwise provided herein, this Agreement shall be binding upon
and inure to the benefit of the Parties hereto and their respective permitted successors, assigns and legal representatives. 

Section 14.07 GOVERNING LAW; VENUE; WAIVER OF JURY TRIAL. THIS AGREEMENT AND THE LEGAL RELATIONS AMONG THE PARTIES SHALL BE
GOVERNED AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, EXCLUDING ANY CONFLICTS OF LAW RULE OR PRINCIPLE THAT MIGHT REFER CONSTRUCTION OF SUCH PROVISIONS TO THE LAWS OF ANOTHER JURISDICTION, EXCEPT TO THE EXTENT THE LAWS OF TEXAS
OR LOUISIANA ARE MANDATORILY APPLICABLE TO TITLE AND REAL PROPERTY MATTERS. ALL ACTIONS AND PROCEEDINGS WITH RESPECT TO, ARISING DIRECTLY OR INDIRECTLY IN CONNECTION WITH, OUT OF, RELATED TO, OR FROM THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY SHALL BE EXCLUSIVELY LITIGATED, HEARD AND DETERMINED IN THE BANKRUPTCY COURT, AND THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY SUBMIT TO THE EXCLUSIVE JURISDICTION AND AUTHORITY OF THE BANKRUPTCY COURT TO HEAR AND DETERMINE ANY SUCH
ACTION OR PROCEEDING; PROVIDED, HOWEVER, THAT IF THE BANKRUPTCY CASE IS CLOSED, THE PARTIES HEREBY UNCONDITIONALLY AND IRREVOCABLY SUBMIT TO THE JURISDICTION OF THE COURTS OF THE STATE OF TEXAS OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN
DISTRICT OF TEXAS. EACH PARTY HERETO WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY. 
 Section 14.08 Notices. Any notice, communication, request, instruction or other document required or
permitted hereunder shall be given in writing and delivered in person or sent by United States mail (postage prepaid, return receipt requested), telex, facsimile or telecopy to the addresses of Sellers and Buyer set forth below. Any such notice
shall be effective upon receipt only if received during normal business hours or, if not received during normal business hours, on the next Business Day. 
  

			
	Sellers:		 Dune Energy, Inc.,
 Dune Operating Company,
and
 Dune Properties, Inc.

  
 44 

			
			 811 Louisiana, Ste. 2300
 Houston, Texas
77002
 Attn: James A. Watt, CEO
 Telephone: [713] 229-6300

Facsimile: [713] 229-6398
  

with a copy to:
  

Kenric D. Kattner
 Haynes and Boone LLP

1221 McKinney Street, Suite 2100
 Houston, Texas 77010-2007

Telephone: (713) 547-2518
 Facsimile: (713) 236-5408

		
	Buyer:		 White Marlin Oil and Gas Company, LLC
 15990 N.
Barkers Landing, Suite 350
 Houston, TX 77079
 Attn: Terrell J.
Clark, President
 Telephone: (713) 595-3600
 Facsimile: (281)
920-9192
  
 with copies to:

 
 John K. Howie

Parallel Resource Partners, LLC
 919 Milam Street, Suite 550

Houston, Texas 77002
 Telephone: (713) 238 9516

Facsimile: (713) 238-9501
  

Louis J. Davis
 Baker & McKenzie LLP

700 Louisiana, Suite 3000
 Houston, Texas 77002

Telephone: (713) 427-5031
 Facsimile: (713) 427-4099

 Either Party may, by written notice so delivered, change its address for notice purposes hereunder. 

Section 14.09 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by
any rule of Law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any
adverse manner to either Party. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original
intent of the Parties as closely as possible in an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the extent possible. 

  
 45 

 Section 14.10 Counterparts. This Agreement may be executed in any number of
counterparts, and each counterpart hereof shall be deemed to be an original instrument, but all such counterparts shall constitute but one instrument. It is not necessary that each Party execute the same counterpart so long as identical counterparts
are executed by each Party. Any signature hereto delivered by a Party by facsimile or electronic transmission shall be deemed an original signature hereto. 

Section 14.11 Approval of the Bankruptcy Court. Notwithstanding anything herein to the contrary, any and all obligations under
this Agreement are subject to approval of the Bankruptcy Court. 
 Section 14.12 Amendment. This Agreement may be amended only
by an instrument in writing executed by all Parties. 
 Section 14.13 Schedules and Exhibits. The inclusion of any matter upon
any Schedule or any Exhibit attached hereto does not constitute an admission or agreement that such matter is material with respect to the representations and warranties contained herein. 

Section 14.14 Time of the Essence. Time is of the essence in this Agreement and with respect to the covenants, obligations and
agreements evidenced hereby. 
 Section 14.15 Buyer Exclusion Rights. Notwithstanding anything contained to the contrary in this
Agreement, Buyer shall have the right, for any reason or no reason, to exclude or reject any Contract (other than Leases), from the transactions contemplated by this Agreement, provided that, unless and except as otherwise provided for in this
Agreement, such rejection or exclusion pursuant to this Section 14.15 shall not affect the Purchase Price. Such right of Buyer to so exclude or reject shall survive the Closing indefinitely. 

[Signature page follows] 

  
 46 

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

			
	SELLERS:
	
	 DUNE ENERGY, Inc.
 a Delaware
corporation

		
	By:		 /s/ Donald R. Martin

	Name:		 Donald R. Martin

	Title:		 Chief Restructuring Officer

	
	 DUNE OPERATING COMPANY
 a
Texas corporation

		
	By:		 /s/ Donald R. Martin

	Name:		 Donald R. Martin

	Title:		 Chief Restructuring Officer

	
	 DUNE PROPERTIES, Inc.
 a
Texas corporation

		
	By:		 /s/ Donald R. Martin

	Name:		 Donald R. Martin

	Title:		 Chief Restructuring Officer

	
	BUYER:
	
	 WHITE MARLIN OIL AND GAS COMPANY LLC,

a Delaware limited liability company

		
	By:		 /s/ Terrell J. Clark

	Name:		Terrell J. Clark
	Title:		President and Chief Executive Officer

 Signature Page to Purchase and Sale AgreementEx.
10.1

ASSET
PURCHASE AGREEMENT

 

This Asset Purchase
Agreement (this “Agreement”), dated as of June 29, 2015, is entered into by and between Acacia Diversified Holdings,
Inc., a Texas corporation (“ADH”), and its wholly-owned subsidiaries Citrus Extracts, Inc., a Florida corporation
(“CEI”), and Acacia Transport Services, Inc., a Florida corporation (“ATS”); and Citrus Extracts
II, LLC, a Florida limited liability company (“CEL”), and Citrus Extracts Transport Services, LLC (“CETS”).
ADH, CEI and ATS are individually and collectively referred to herein as the “Seller.” CEL and CETS are individually
and collectively referred to herein as the “Buyer.”

 

RECITALS

 

WHEREAS, ADH, by
and through its subsidiary CEI is engaged in the business of acquiring and processing raw citrus peel into dehydrated citrus ingredient
products (the “CEI Business”), and by and through its subsidiary ATS is engaged in the business of transporting
raw citrus peel by truck (the “ATS Business”). For its part, ADH owns certain assets relating to the milling
of dehydrated citrus ingredient products (the “Milling Business,” and collectively with the CEI Business and
ATS Business, the “Seller Businesses”);

 

WHEREAS, the Seller,
in pursuit of the Seller Businesses, holds good and valuable title to assets related to the Seller Businesses and has assumed certain
liabilities in the normal course of the Seller Businesses;

 

WHEREAS, Seller
wishes to sell and assign to Buyer, and Buyer wishes to purchase and assume from Seller, the rights and interests of Seller to
the Purchased Assets and the Assumed Liabilities (as defined herein), subject to the terms and conditions set forth herein;

 

NOW, THEREFORE,
in consideration of the mutual covenants and agreements hereinafter set forth and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

Article
I 

Purchase
and Sale

 

Section
1.01        Purchase
and Sale of Assets. 

 

(a)               
Subject to the terms and conditions set forth herein, at the Closing Seller shall sell, assign,
transfer, convey and deliver to the appropriate Buyer, and such Buyer shall purchase and acquire from Seller, free and clear of
any mortgage, pledge, lien, charge, security interest, claim or other encumbrance (each being an “Encumbrance”),
all of Seller’s right, title and interest in and to all of the assets, properties, and rights (including goodwill), wherever
located, described below (collectively, the “Purchased Assets”): 

(i)                
the assets set forth on Section 1.01 of the schedules attached to this Agreement (the “Disclosure
Schedules”); 

(ii)              
all of Seller’s contracts and agreements relating to the Seller Businesses or the Purchased
Assets, including the Assigned Contracts set forth on Section 3.07 of the Disclosure Schedule; 

(iii)            
all of Seller’s Permits (as defined below) relating to the Seller Businesses or the
Purchased Assets, to the extent transferable or assignable to the Buyer, including the Assigned Permits set forth on Section 3.08
of the Disclosure Schedule; 

(iv)            
all prepaid expenses and deposits of Seller relating to the Purchased Assets or the Seller
Businesses, subject to Section 5.09; 

(v)              
all inventory, raw materials, finished goods and work-in-progress relating to the Seller Businesses
or the Purchased Assets;

(vi)            
all data, records and information relating to the Purchased Assets or the Seller Businesses,
including without limitation financial records and information and data relating to technical support or operations of the Seller
Businesses;

(vii)          
 all technical information, data, customer lists, supplier lists, price lists, process technology,
plans and drawings, and all other Intellectual Property (as defined below) relating to the Seller Businesses or the Purchased Assets,
including without limitation Seller’s trade secrets relating to its Citrus Emulsion System and its Citrus Peel Processing
System, but excluding any right to use the name “Acacia” or its trademarks, trade names, or logos using the name “Acacia”;
and 

(viii)        
all claims under warranties, indemnities or other claims or rights against third parties relating
to the Purchased Assets or the Seller Businesses, and all insurance benefits and proceeds arising out of the Purchased Assets or
the Seller Businesses after the Closing. 

(b)              
CEL shall acquire at the Closing all of the Purchased Assets except for the following which
shall be acquired by CETS (collectively, the “CETS Assets”): (a) the Purchased Assets specifically described
on Section 1.01 of the Disclosure Schedule as being transferred to CETS, (b) the Assigned Contracts specifically designated as
being acquired by CETS on Section 3.07 of the Disclosure Schedule (the “CETS Contracts”), and (c) the Assigned
Permits specifically designated as being acquired by CETS on Section 3.08 of the Disclosure Schedule (the “CETS Permits”).

 

Section
1.02        Excluded
Assets. Notwithstanding the foregoing, the Purchased Assets shall not include: 

 

(a)Seller’s
cash, cash equivalents, accounts and notes receivables;

 

(b)all
minute books, stock and similar records, and company seals:

 

(c)all
issued and outstanding shares of capital stock of Seller;

 

(d)all
personnel records and other records that Seller is required by law to retain in its possession;

 

(e)all
contracts that are not included in the Purchased Assets; and

 

(f)all
insurance policies and rights thereunder; and,

 

(g)any other
assets of Seller identified as excluded assets on Section 1.02 of the Disclosure Schedule or not otherwise described in Section
1.01 above (collectively, the “Excluded Assets”).

 

Section
1.03        Assumed
Liabilities; Excluded Liabilities. 

 

(a)               
As part of the consideration for the Purchased Assets, subject to the terms and conditions
set forth herein, (a) CEL shall assume and agree to pay, perform and discharge only the liabilities and obligations arising after
the Closing under the Assigned Contracts other than the CETS Contracts, but only to the extent that such liabilities and obligations
do not relate to any breach, default or violation by Seller on or prior to the Closing (the “CEL Assumed Liabilities”)
and (b) CETS shall assume and agree to pay, perform and discharge only the liabilities and obligations arising after the Closing
under the CETS Contracts, but only to the extent that such liabilities and obligations do not relate to any breach, default or
violation by Seller on or prior to the Closing (the “CETS Assumed Liabilities” and, collectively with the CEL
Assumed Liabilities, the “Assumed Liabilities”). 

(b)              
Other than the Assumed Liabilities, Buyer shall not assume any liabilities or obligations
of Seller or the Seller Businesses of any kind, whether known or unknown, contingent, matured or otherwise, whether currently existing
or hereinafter created. Seller shall, and shall cause each of its Affiliates to, pay and satisfy in due course all liabilities
and obligations which they are obligated to pay and satisfy. All liabilities and obligations of the Seller other than the Assumed
Liabilities are sometimes referred to as the “Excluded Liabilities.”

 

Section
1.04        Purchase
Price; Payments. 

 

(a)               
Purchase Price. The purchase price for the Purchased Assets shall be Two Million Five
Hundred Sixty Thousand Eight Hundred Fourteen Dollars and 22/100 ($2,560,814.22) (the “Purchase Price”), plus
the assumption of the Assumed Liabilities.

 

(b)              
Payments at Closing. At the Closing, Buyer shall pay an amount equal to the Purchase
Price, by wire transfer of immediately available funds to accounts and in accordance with wire transfer instructions specified
in writing before Closing, as follows: 

 

(i)                
the amounts to the Sellers’ creditors and other holders of Seller’s trade payable
obligations, as set forth in the lender’s payoff letters and related information delivered to Buyer or the trade payables
list set forth on Section 1.04 of the Disclosure Schedule; 

(ii)              
any amounts to the persons set forth on Section 1.04 of the Disclosure Schedule in consideration
of his or her execution of the Non-Competition Agreements;

(iii)            
the remainder to ADH as sole shareholder of CEI and ATS in accordance with the wire transfer
instructions set forth in Section 1.04 of the Disclosure Schedules. 

Section
1.05        Allocation
of Purchase Price and Assets. Seller and Buyer agree to allocate the Purchase Price among the Purchased Assets for all purposes
(including tax and financial accounting) in accordance with the Section 1.05 of the Disclosure Schedules. Buyer and Seller shall
file all tax returns (including amended returns and claims for refund) and information reports in a manner consistent with such
allocation. 

 

Article
II

Closing

 

Section
2.01        Closing.
The closing of the transactions contemplated by this Agreement (the “Closing”) shall take place simultaneously
with the execution of this Agreement on the date of this Agreement (the “Closing Date”) at the offices of the
BrownWinick Law Firm, 666 Grand Avenue, Suite 2000, Des Moines, IA 50309. The consummation of the transactions contemplated by
this Agreement shall be deemed to occur at 12:01 a.m. on the Closing Date.

 

Section
2.02        Closing
Deliverables.

 

(a)At
the Closing, Seller shall deliver to Buyer the following:

 

(i)                
a bill of sale in form and substance satisfactory to Buyer, duly executed by Seller, transferring
the Purchased Assets (other than the CETS Assets) to CEL (the “CEL Bill of Sale”);

 

(ii)              
a bill of sale in form and substance satisfactory to Buyer, duly executed by Seller, transferring
the CETS Purchased Assets to CETS (the “CETS Bill of Sale”);

 

(iii)            
an assignment for each of the Purchased Assets which are intangible assets (“Intangible
Asset Assignment”);

 

(iv)            
executed consents for any Assigned Contracts for which a consent is required by the terms
of such Assigned Contract, including without limitation those set forth on Section 3.02 of the Disclosure schedule (the “Contract
Consents”);

 

(v)              
an assignment and assumption agreement in form and substance satisfactory to Buyer, duly executed
by the Seller, effecting the assignment to and assumption by CEL of the Assigned Contracts (other than the CETS Contracts), the
Assigned Permits (other than the CETS Permits), to the extent such permits are assignable, and the CEL Assumed Liabilities (the
“CEL Assignment and Assumption Agreement”);

 

(vi)            
an assignment and assumption agreement in form and substance satisfactory to Buyer, duly executed
by the Seller, effecting the assignment to and assumption by CETS of the CETS Contracts, CETS Permits to the extent such permits
are assignable, and the CETS Assumed Liabilities (the “CETS Assignment and Assumption Agreement”);

 

(vii)          
Seller’s affidavit that it owes no taxes in any jurisdiction in which it is obligated
to file tax returns or reports or pay taxes, and that there is no obligation of Seller that could serve to cause an Encumbrance
or an attachment to the Purchased Assets. 

 

(viii)        
a certificate of the Secretary (or equivalent officer) of each Seller certifying as to (A)
the resolutions of the board of directors of such entity, duly adopted and in effect, which authorize the execution, delivery and
performance of this Agreement and the transactions contemplated hereby, and (B) the names and signatures of the officers of such
entity authorized to sign this Agreement and the documents to be delivered hereunder; 

 

(ix)            
 a non-competition and non-solicitation agreement in form and substance satisfactory to Buyer,
executed by each of Steven L. Sample, Edward W. Sample, William A. Sample, Clarence Shivers, and William J. Howe in favor of Buyer
(collectively, the “Non-Competition Agreements”); 

 

(x)              
an employment agreement in form and substance satisfactory to Buyer, executed by each of William
J. Howe and Clarence Shivers (the "Employment Agreements"); 

 

(xi)            
Payoff letters for any secured creditors and/or other reasonable documentation detailing indebtedness
of Seller for purposes of identifying the obligations of Seller to be extinguished from proceeds of the sale as set forth in Section
1.04; 

 

(xii)          
all certificates of title relating to any of the Purchased Assets, duly endorsed for transfer
as necessary to vest title in the appropriate Buyer;

(xiii)        
all Required Consents, in form and substance satisfactory to Buyer; 

(xiv)        
such other customary instruments of transfer, assumption, filings or documents, in form and
substance reasonably satisfactory to Buyer, as may be required to give effect to this Agreement.

 

(b)              
At the Closing, Buyer shall deliver to Seller the following:

 

(i)                
The payments referenced in Section 1.04(b); 

 

(ii)              
the CEL Assignment and Assumption Agreement and CETS Assignment and Assumption Agreement duly
executed by Buyer;

 

(iii)            
the Employment Agreements duly executed by Buyer;

 

(iv)            
the Non-Competition Agreements duly executed by Buyer; 

 

(v)              
the Assignments and Assumptions of Leases duly executed by Buyer;

 

(vi)            
a certificate of the Secretary (or equivalent officer) of each Buyer certifying as to (A)
the resolutions of the managers of such entity, duly adopted and in effect, which authorize the execution, delivery and performance
of this Agreement and the transactions contemplated hereby, and (B) the names and signatures of the managers or officers of Buyer
authorized to sign this Agreement and the documents to be delivered hereunder.

 

Article
III

Representations and warranties of seller

 

Each Seller jointly
and severally represents and warrants to Buyer that the statements contained in this Article III are true and correct as of the
date hereof. For purposes of this Article III, “Seller’s knowledge,” “knowledge of Seller” and any
similar phrases shall mean the actual or constructive knowledge of any director or officer of Seller, after due inquiry.

 

Section
3.01        Organization
and Authority of Seller; Enforceability. ADH is a corporation duly organized, validly existing and in good standing under the
laws of the state of Texas. CEI and ATS are corporations duly organized, validly existing and in good standing under the laws of
the state of Florida. Seller has full corporate power and authority to enter into this Agreement and the documents to be delivered
hereunder, to carry out its obligations hereunder and to consummate the transactions contemplated hereby. The execution, delivery
and performance by Seller of this Agreement and the documents to be delivered hereunder and the consummation of the transactions
contemplated hereby have been duly authorized by all requisite corporate action on the part of Seller and its shareholders. This
Agreement and the documents to be delivered hereunder have been duly executed and delivered by Seller and (assuming due authorization,
execution and delivery by Buyer) this Agreement and the documents to be delivered hereunder constitute legal, valid and binding
obligations of Seller, enforceable against Seller in accordance with their respective terms.

 

Section
3.02        No
Conflicts; Consents. The execution, delivery and performance by Seller of this Agreement and the documents to be delivered
hereunder, and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the
certificate of incorporation, articles of incorporations, bylaws or other organizational documents of Seller; (b) violate or conflict
with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or the Purchased Assets; (c)
conflict with, or result in (with or without notice or lapse of time or both) any violation of, or default under, or give rise
to a right of termination, acceleration or modification of any obligation or loss of any benefit under any contract or other instrument
to which Seller is a party or to which any of the Purchased Assets are subject; or (d) result in the creation or imposition of
any Encumbrance on the Purchased Assets. Except as set forth on Section 3.02 of the Disclosure Schedule, no consent, approval,
waiver or authorization is required to be obtained by Seller from any person or entity (including any governmental authority) in
connection with the execution, delivery and performance by Seller of this Agreement and the consummation of the transactions contemplated
hereby (the “Required Consents”).

 

Section
3.03        Title
to Purchased Assets. Seller owns and has good and transferable title to the Purchased Assets, free and clear of Encumbrances,
except for those Encumbrances set forth on Section 3.03 of the Disclosure Schedule to be released at Closing upon payoff of the
amounts and pursuant to payoff letters referenced in Section 1.04(b)(i). No party other than Seller has any right, title or interest
in or to any of the Purchased Assets.

 

Section
3.04        Condition
of Assets. Subject to the terms of this Agreement, all tangible Purchased Assets and items are sold and conveyed by Seller
“as is-where is”, without any warranty as to fitness or condition, either expressed or implied, and Seller makes no
representation as to the fitness or condition of any asset or item for a particular purpose. 

 

Section
3.05        Inventory.
To the best of Seller’s knowledge, all inventory, finished goods, raw materials, work in progress, packaging, supplies, parts
and other inventories included in the Purchased Assets consist of a quality and quantity usable and salable in the ordinary course
of business as of the Closing.

 

Section
3.06        Intellectual
Property.

 

(a)               
“Intellectual Property” means any and all of the following as may be now
or previously owned, used or licensed by Seller and used in any of the Seller Businesses, in any jurisdiction throughout the world:
(i) its trademarks and service marks, including all applications and registrations and the goodwill connected with the use of and
symbolized by the foregoing, and the name of and right to use “Citrus Extracts”; (ii) copyrights, including all applications
and registrations related to the foregoing; (iii) its patents and patent applications; (iv) its websites and internet domain name
registrations; (v) all its trade secrets, know how, confidential or proprietary information related to its Emulsion System and
CitraBlend products, customer and supplier lists, software (excluding the QuickBooks Enterprise software and any other software
licensed directly to ADH (the “ADH Licensed Software”)), technical information, processes, designs, plans and
other proprietary and confidential information used in a Seller Business; (vi) all computer software, programs and databases in
any form insofar as they can be transferred, and excluding the QuickBooks Enterprise software and any other software licensed directly
to ADH; and (vii) other intellectual property and related proprietary rights, interests and protections (including all rights to
sue and recover and retain damages, costs and attorneys’ fees for past, present and future infringement and any other rights
relating to any of the foregoing).

 

(b)              
Section 3.06(b) of the Disclosure Schedules lists all material Intellectual Property included
in the Purchased Assets. The Purchased Assets include all Intellectual Property relating to the Seller Businesses (other than the
right to use the name “Acacia” and the ADH Licensed Software). Seller owns or has adequate, valid and enforceable rights
to use all the Intellectual Property, free and clear of all Encumbrances. Seller is not bound by any outstanding judgment, injunction,
order or decree restricting the use of the Intellectual Property, or restricting the licensing thereof to any person or entity.

 

(c)               
Seller’s prior and current use of the Intellectual Property has not and does not infringe,
violate, dilute or misappropriate the intellectual property or proprietary rights of any person or entity and there are no claims
pending or threatened by any person or entity with respect to the ownership, validity, enforceability, effectiveness or use of
the Intellectual Property. To the knowledge of Seller, no person or entity is infringing, misappropriating, diluting or otherwise
violating any of the Intellectual Property, and neither Seller nor any affiliate of Seller has made or asserted any claim, demand
or notice against any person or entity alleging any such infringement, misappropriation, dilution or other violation.

 

Section
3.07        Assigned
Contracts. Section 3.07 of the Disclosure Schedules includes each contract, agreement included in the Purchased Assets and
being assigned to and assumed by Buyer (the “Assigned Contracts”). The Assigned Contracts constitute all of
the contracts, agreements and understandings, whether written or oral, which are necessary for or useful to permit the Buyer to
conduct the Seller Businesses as conducted by Seller immediately before Closing. Each Assigned Contract is valid and binding on
the parties thereto in accordance with its terms and is in full force and effect. None of Seller or, to Seller’s knowledge,
any other party thereto is in breach of or default under (or is alleged to be in breach of or default under), or has provided or
received any notice of any intention to terminate, any Assigned Contract. No event or circumstance has occurred that, with or without
notice or lapse of time or both, would constitute an event of default under any Assigned Contract or result in a termination thereof
or would cause or permit the acceleration or other changes of any right or obligation or the loss of benefit thereunder. Complete
and correct copies of each Assigned Contract have been delivered to Buyer. Each Assigned Contract is assignable to Buyer without
the consent of or notice to any other person, except as set forth on Section 3.02 of the Disclosure Schedule. There are no disputes
pending or threatened under any Assigned Contract.

 

Section
3.08        Permits.
Section 3.08 of the Disclosure Schedules lists all permits, licenses, franchises, approvals, authorizations, registrations, certificates,
variances and similar rights obtained from governmental authorities (“Permits”) held by a Seller and relating
to the Seller Businesses or the Purchased Assets, all of which are included in the Purchased Assets to the extent they are assignable
or transferable (collectively, the “Assigned Permits”). The Assigned Permits constitute all of the Permits,
if transferrable, which are necessary for or useful to permit Buyer to lawfully conduct the Seller Businesses as conducted by the
Seller immediately before Closing and own and use the Purchased Assets in the manner owned and used by the Seller immediately before
Closing. The Assigned Permits are valid and in full force and effect for Seller. The Assigned Permits are, and have been, in compliance
with the applicable terms and requirements of such Permits. All fees and charges with respect to such Assigned Permits as of the
date hereof have been paid in full. No event has occurred that, with or without notice or lapse of time or both, would reasonably
be expected to result in the revocation, suspension, lapse or limitation of any Assigned Permit. 

 

Section
3.09        Compliance
With Laws. Seller has complied, and is now complying, with all applicable federal, state and local laws and regulations applicable
to ownership and use of the Purchased Assets and the operation of the Seller Businesses. No event has occurred or circumstance
exists that (with or without notice or passage of time or both) may constitute or result in a failure to comply with any such applicable
federal, state and local law or regulation.

 

Section
3.10        Financial
Statements. Seller has delivered to Buyer the consolidated audited income statements and balance sheets of ADH and its subsidiaries
and supporting documentation as provided by Seller’s public auditors as of and for the years ended December 31, 2014 and
2013. Such financial statements fairly present the financial condition and results of operations of Seller as of the respective
dates thereof for the periods referred to in such financial statements, in accordance with GAAP. Seller has no liability or obligation,
except as reflected or reserved against in the most recent balance sheets for Seller referenced in this Section 3.10 or for immaterial
liabilities incurred in the ordinary course of business after the date of such balance sheet. 

 

Section
3.11        Material
Adverse Effect. Since January 1, 2015, there has not been any material adverse change in the business, operations, assets,
results of operations or condition (financial or other) of CEI or ATS or the prospects of either and, to Seller’s knowledge,
no event has occurred or circumstance exists that may reasonably be expected to result in such a material adverse change. 

 

Section
3.12        Other
Shared Information. For purposes of this Section, “Shared Information” refers to projections and confidential
information shared by William J. Howe to Buyer, independent of and without authorization by Seller or Steven L. Sample, relating
to the past and present operations, production, product and service sales, clientele matters, and all other factors related to
CEI and ATS and Buyer’s potential acquisition from Seller of the Purchased Assets. Seller does not make any representation
or warranty to Buyer regarding the accuracy of the Shared Information that was created on William J. Howe’s (“Howe”)
own time and by Howe’s own efforts, which Shared Information contains various projections, scenarios, plans, descriptions,
depictions, representations and forward-looking statements, all of which were prepared and presented to Buyer by Howe in their
entirety without the prior review and/or approval of Seller, who takes no responsibility for the content thereof. Nothing contained
in this Section 3.12 shall limit Seller’s representations and warranties set forth in this Agreement (including the Disclosure
Schedules hereto) or restrict Buyer’s right to rely on the due diligence information provided to Buyer by Seller, including
the financial reports and related information provided to Buyer directly by Seller for which Seller takes full responsibility.

 

Section
3.13        Legal
Proceedings. There is no claim, action, suit, proceeding or governmental investigation (“Action”) of any
nature pending or, to Seller’s knowledge, threatened against or by Seller (a) relating to or affecting the Purchased Assets,
the Assumed Liabilities or any Seller Business; or (b) that challenges or seeks to prevent, enjoin or otherwise delay the transactions
contemplated by this Agreement or any document to be delivered hereunder. No event has occurred or circumstances exist that may
give rise to, or serve as a basis for, any such Action.

 

Section
3.14        Sufficiency
of Assets. The Purchased Assets constitute all of the assets and properties, tangible and intangible, real or personal, of
any nature whatsoever, necessary to operate each of the Seller Businesses in substantially the same manner the Seller Businesses
were conducted by Seller immediately prior to Closing.

 

Section
3.15        Taxes.
Seller has filed or caused to be field on a timely basis all tax returns and reports relating to taxes that are or were required
to be filed pursuant to federal, state and local laws and regulations. All tax returns and reports field by Seller are true, correct
and complete and were prepared in compliance with federal, state and local laws and regulations. There is no dispute or claim concerning
any taxes of Seller either claimed or raised by any governmental authority in writing or as to which Seller has knowledge. There
are no proposed tax assessment or deficiency against Seller except as disclosed on the balance sheet referenced in Section 3.11(a).

 

Section
3.16        Employee
Benefits. Seller’s Plans, if any, have been operated and administered in accordance with their respective terms and with
applicable laws, including, without limitation, all applicable provisions of the Employee Retirement Income Security Act of 1974,
as amended and the Internal Revenue Code of 1986, as amended and the respective rules and regulations thereunder. The term “Plan”
means all severance pay, vacation, sick leave, medical, dental, life insurance, disability or other welfare plans, savings, profit
sharing or other retirement plans and all bonus or other incentive plans, contracts, arrangements or practices maintained or contributed
to by the Seller and in which any one or more of the current or former employees of the Seller is eligible to participate or has
participated. There are no pending or, to Seller’s knowledge, threatened, claims by or on behalf of any of the Plans, by
any employee or beneficiary covered under such Plan, or otherwise involving any such Plan (other than routine claims for benefits),
and all contributions required to be made under the terms of any Plan have been made. 

 

Section
3.17        Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of any Seller.

 

Section
3.18        Full
Disclosure. No representation or warranty by Seller in this Agreement and no statement contained in the Disclosure Schedules
to this Agreement or any certificate or other document furnished or to be furnished to Buyer pursuant to this Agreement contains
any untrue statement of a material fact, or omits to state a material fact necessary to make the statements contained therein,
in light of the circumstances in which they are made, not misleading.

 

Article
IV

Representations and warranties of buyer

 

Each Buyer jointly
and severally represents and warrants to Seller that the statements contained in this Article IV are true and correct as of the
date hereof. For purposes of this Article IV, “Buyer’s knowledge,” “knowledge of Buyer” and any similar
phrases shall mean the actual or constructive knowledge of any manager or officer of Buyer, after due inquiry.

 

Section
4.01        Organization
and Authority of Buyer; Enforceability. CEL and CETS are limited liability companies duly organized, validly existing and in
good standing under the laws of the state of Florida. Buyer has full limited liability company power and authority to enter into
this Agreement and the documents to be delivered hereunder, to carry out its obligations hereunder and to consummate the transactions
contemplated hereby. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder
and the consummation of the transactions contemplated hereby have been duly authorized by all requisite company action on the part
of Buyer. This Agreement and the documents to be delivered hereunder have been duly executed and delivered by Buyer, and (assuming
due authorization, execution and delivery by Seller) this Agreement and the documents to be delivered hereunder constitute legal,
valid and binding obligations of Buyer enforceable against Buyer in accordance with their respective terms.

 

Section
4.02        No
Conflicts; Consents. The execution, delivery and performance by Buyer of this Agreement and the documents to be delivered hereunder,
and the consummation of the transactions contemplated hereby, do not and will not: (a) violate or conflict with the organizational
documents of Buyer; or (b) violate or conflict with any judgment, order, decree, statute, law, ordinance, rule or regulation applicable
to Buyer. No consent, approval, waiver or authorization is required to be obtained by Buyer from any person or entity (including
any governmental authority) in connection with the execution, delivery and performance by Buyer of this Agreement and the consummation
of the transactions contemplated hereby.

 

Section
4.03        Legal
Proceedings. There is no Action of any nature pending or, to Buyer’s knowledge, threatened against or by Buyer that challenges
or seeks to prevent, enjoin or otherwise delay the transactions contemplated by this Agreement. No event has occurred or circumstances
exist that may give rise to, or serve as a basis for, any such Action.

 

Section
4.04        Brokers.
No broker, finder or investment banker is entitled to any brokerage, finder’s or other fee or commission in connection with
the transactions contemplated by this Agreement based upon arrangements made by or on behalf of Buyer.

 

Section
4.05        Access.
Buyer acknowledges that it has been provided access by the Seller to the properties and assets
of the Seller and the opportunity to communicate with Seller’s auditors for the purpose of conducting an investigation and
review of the Purchased Assets. 

 

 

Article
V

Covenants

 

Section
5.01        Public
Announcements. Unless otherwise required by applicable law, no party shall make any public announcements regarding this Agreement
or the transactions contemplated hereby without the prior written consent of the other party (which consent shall not be unreasonably
withheld or delayed), except to the extent required by applicable federal securities laws and regulations. 

 

Section
5.02        Bulk
Sales Laws. The Parties hereby waive compliance with the provisions of any bulk sales, bulk transfer or similar laws of any
jurisdiction that may otherwise be applicable with respect to the sale of any or all of the Purchased Assets to Buyer; provided,
however, that Seller agrees (a) to pay and discharge when due or to contest or litigate all claims of creditors which are asserted
against Buyer or the Purchased Assets by reason of such noncompliance; (b) to indemnify, defend and hold harmless Buyer from and
against any and all such claims in the manner provided in Article VI; and (c) to take promptly all necessary action to remove any
Encumbrance which is placed on the Purchased Assets by reason of such noncompliance.

 

Section
5.03        Transfer
Taxes; Taxes for Pre-Closing Periods. All transfer, documentary, sales, use, stamp, registration, value added and other such
taxes and fees (including any penalties and interest) incurred in connection with this Agreement and the documents to be delivered
hereunder shall be borne and paid by Buyer when due. Buyer shall, at its own expense, timely file any tax return or other document
with respect to such taxes or fees (and Seller shall cooperate with respect thereto as necessary). Further, Seller shall be liable
for and shall pay any and all taxes and fees of Seller or any Affiliate of Seller relating to the ownership, use or operation of
the Seller Businesses, the Purchased Assets and the Assumed Liabilities for any period on or before the Closing Date.

 

Section
5.04        Further
Assurances. Following the Closing, each of the parties hereto shall execute and deliver such additional documents, instruments,
conveyances and assurances and take such further actions as may be reasonably required to carry out the provisions hereof and give
effect to the transactions contemplated by this Agreement and the documents to be delivered hereunder.

Section
5.05        Employees
and Employee Benefits. Commencing on the Closing Date, Seller shall terminate all employees who are actively employed by CEI
or ATS on the Closing Date, and, at Buyer’s sole discretion, Buyer may offer employment to any or all of such employees on
terms determined by Buyer. Seller shall be solely responsible, and Buyer shall have no obligations whatsoever for, any compensation,
benefits or other amounts payable to any current or former employee, officer, director, independent contractor or consultant of
Seller, including, without limitation, hourly pay, commission, bonus, salary, accrued vacation, fringe, pension, welfare benefits,
or profit sharing benefits or severance pay for any period relating to the service with Seller at any time on or prior to the Closing
Date and Seller shall pay all such amounts to all entitled persons on or prior to the Closing Date.

Section
5.06        Restrictive
Covenants. 

(a)               
Noncompetition. For a period of five (5) years after the Closing Date (the “Non-Compete
Period”), no Seller nor any of any Affiliate of a Seller, shall, anywhere in the United States (the “Restricted
Territory”), directly or indirectly invest in, own, manage, operate, finance, control, advise, render services to or
guarantee the obligations of any person or entity engaged in or planning to become engaged in any of the Seller Businesses or any
business competitive with any of the Seller Businesses. An “Affiliate” of a person shall mean any of its directors,
officers, partners or managers (or similar capacity), any beneficial owner of 20% or more of the outstanding equity of such person,
or any other person who, directly or indirectly, controls or is under common control with such a person. William J. Howe’s
or Clarence Shivers’ performance of duties in accordance with the Employment Agreements shall not be deemed a violation of
this provision.

(b)              
Nonsolicitation. During the Non-Compete Period, no Seller nor any Affiliate of a Seller,
shall, directly or indirectly:

(i)                
solicit the business of any person or entity who is a customer or potential customer of a
Buyer for the products or services then sold by Buyer in any manner that could be likely to result in such person or entity curtailing
or canceling any business or contracts that such person or entity has with a Buyer, or in any way interfere with the relationship
between a Buyer and such person or entity; 

(ii)              
cause, induce or attempt to cause or induce any actual or potential customer, supplier, licensee,
licensor, distributor, employee, consultant or other business relation of a Buyer to cease doing business with a Buyer, to deal
with any competitor of a Buyer, or in any way interfere with its relationship with such Buyer; or

(iii)            
hire, employ, engage, retain or attempt to hire, employ, engage or retain any employee or
independent contractor of a Buyer or in any way interfere with the relationship between Buyer and any of its employees or independent
contractors.

(c)               
Confidentiality and Nondisparagement. No Seller nor any Affiliate of a Seller will,
directly or indirectly (including through advisors and brokers), (i) disparage another party to this Agreement or any of such other
party’s members, managers, officers, employees or agents, (ii) disclose to any person or entity any confidential, proprietary
or non-public information concerning the Buyer, the Seller Businesses, the Purchased Assets, the transactions contemplated in this
Agreement, or the terms of this Agreement or any related documents (“Confidential Information”), for any reason
or purpose whatsoever, except as permitted under this Agreement, or (iii) use any of such Confidential Information for such Seller
or Affiliate’s own purpose or for the benefit of any person or entity.

(d)Modification
of Covenant. If a final judgment of a court or tribunal of competent jurisdiction determines that any term or provision contained
in Section 5.06(a) through (c) is invalid or unenforceable, then the parties agree that the court or tribunal will have the power
to reduce the scope, duration or geographic area of the term or provision, to delete specific words or phrases or to replace any
invalid or unenforceable term or provision with a term or provision that is valid and enforceable and that comes closest to expressing
the intention of the invalid or unenforceable term or provision. This Section 5.06 will be enforceable as so modified after the
expiration of the time within which the judgment may be appealed. This Section 5.06 is reasonable and necessary to protect and
preserve Buyer’s legitimate business interests and the value of the Purchased Assets and to prevent any unfair advantage
conferred on Sellers or their Affiliates.

 

5.07 Name
Change. Seller shall within ten (10) days following the Closing, execute and file appropriate documents with the State
of Florida to change the name of Citrus Extracts, Inc. to “CEI Liquidation, Inc.” or such other name that does not
utilize “Citrus Extracts” or any confusingly similar name.

 

5.08Cooperation
Regarding Permits and Authorizations. Seller shall provide Buyer with all commercially-reasonable assistance and documentation
required to give effect to the transfer to CEL and CETS of all permits, certificates and certifications, licenses and other authorities
related to the Seller Businesses, including the Assigned Permits, as set forth in Section 3.08 of the Disclosure Schedule to the
extent they are transferrable to Buyer.

 

5.09Expenses.
Seller and Buyer agree that: (a) Seller shall be responsible for payment of all costs and expenses in connection with the Purchased
Assets incurred before the Closing Date, and (b) Buyer shall be responsible for payment of all costs and expenses incurred by Buyer
in connection with the Purchased Assets on or after the Closing Date. To the extent there are certain Straddle Period Expenses
(as defined below) relating to the Purchased Assets incurred by Seller and payable for a period which commenced prior to but ends
after the date of Closing (the “Straddle Period”), then the Straddle Period Expenses will be shared as follows:

 

(i)Seller will
be responsible for its Pro Rata Percentage of such Straddle Period Expenses incurred through the date immediately prior to the
date of Closing; and

 

(ii)Buyer will
be responsible for its Pro Rata Percentage of such Straddle Period Expenses incurred on and after the date of Closing.

 

A party’s
respective “Pro Rata Percentage” shall be determined by dividing the number of days in the applicable Straddle
Period during which it owned the Purchased Assets (with Buyer being deemed the owner of the Purchased Assets on the date of Closing)
by the total number of days within the Straddle Period, or in any other manner which the parties mutually agree.

 

The “Straddle
Period Expenses” shall mean expenses relating to natural gas, electric and other utilities and other costs which the
parties mutually agree should be shared among the parties in the manner provided herein. The parties agree to cooperate in good
faith to ensure that the Straddle Period Expenses are shared in a manner that is reflective of the time period during which each
party was the owner of the Purchased Assets to which the Straddle Period Expenses relate.

 

The party billed
for or who otherwise initially incurred the obligation to pay the Straddle Period Expenses shall timely pay such expenses in full,
and the other party’s Pro Rata Percentage, if any, of such expenses shall be offset against the FPUA Deposit as contemplated
in this Section 5.09 below.

 

Seller acknowledges
and agrees that it will have no authority to incur any expenses, costs or fees on behalf of Buyer from and after the date of Closing
and that if any such expenses, costs or fees are incurred contrary to this sentence, Buyer will have no obligation to pay any portion
thereof.

 

Similarly, Buyer
acknowledges and agrees that it will have no authority to incur any expenses, costs or fees on behalf of Seller from and after
the date of Closing and that if any such expenses, costs or fees are incurred contrary to this sentence, Seller will have no obligation
to pay any portion thereof.

 

Notwithstanding
anything herein to the contrary, the parties agree that the total amount of the Straddle Period Expenses which Buyer is responsible
for hereunder shall be offset against the total amount of the Seller’s deposit with the Fort Pierce Utility Authority, including
any deposit held in the name of Red Phoenix Extracts, Inc. for Seller’s benefit (“FPUA Deposit”) (which is a
Purchased Asset that Seller shall be entitled to hold post-Closing for the account of Buyer until settlement as provided herein),
and upon settlement of such amounts Seller shall thereafter promptly pay over and deliver to Buyer the difference between the FPUA
Deposit and such expenses of Buyer.

 

5.10 Non-Assignable
Permits; Permit Fees. To the extent that any Permits are not assignable to Buyer by applicable law, regulation or rule, as
further disclosed on Schedule 3.08, Buyer acknowledges and agrees that it will be responsible for applying for such Permits in
its own name, provided that Seller will cooperate with Buyer to facilitate such process.

 

Article
VI

Indemnification

 

Section
6.01        Survival.
All representations, warranties, covenants and agreements contained herein and all related rights to indemnification shall survive
the Closing.

 

Section
6.02        Indemnification
By Seller. Seller shall defend, indemnify and hold harmless Buyer, its affiliates and their respective stockholders, members,
managers, directors, officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses,
costs and expenses, including attorneys’ fees and disbursements, arising from or relating to:

 

(a)               
any inaccuracy in or breach of any of the representations or warranties of Seller contained
in this Agreement or any document to be delivered hereunder;

 

(b)              
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by
Seller pursuant to this Agreement or any document to be delivered hereunder; 

 

(c)               
any claim, liability or obligation based upon or arising out of the ownership or operation
of the Seller Businesses or the Purchased Assets or any other liability or obligation of Seller, in any case existing or arising
on or prior to the date of Closing (other than the Assumed Liabilities); 

 

(d)              
any claim, liability or obligation relating to or arising out of any Encumbrance or claimed
Encumbrance by Florida Community State Bank or any other lienholder of Red Phoenix Extracts Inc. on any of the Purchased Assets;

 

(e)               
any Excluded Asset or Excluded Liability.

 

Section
6.03        Indemnification
by Buyer. Buyer shall defend, indemnify and hold harmless Seller, its affiliates and their respective stockholders, directors,
officers and employees from and against all claims, judgments, damages, liabilities, settlements, losses, costs and expenses, including
attorneys’ fees and disbursements, arising from or relating to:

 

(a)               
any inaccuracy in or breach of any of the representations or warranties of Buyer contained
in this Agreement or any document to be delivered hereunder;

 

(b)              
any breach or non-fulfillment of any covenant, agreement or obligation to be performed by
Buyer pursuant to this Agreement or any document to be delivered hereunder; or

 

(c)               
any Assumed Liability.

 

Section
6.04        Claims;
Assumption of Defense. As soon as is reasonably practicable after becoming aware of a claim for indemnification under this
Agreement (including a claim or suit by a third party), the Indemnified Party shall promptly give written notice to the Indemnifying
Party of such claim, which notice shall specify in reasonable detail the facts relating to the claim. The Indemnifying Party may,
at its own expense, 

 

(a)               
participate in the defense of any claim, suit, action or proceeding; and, 

(b)              
upon notice to the Indemnified Party at any time during the course of any such claim, suit,
action or proceeding, assume the defense thereof, including selecting counsel for the matter; provided, however, that counsel selected
by the Indemnifying Party is reasonably satisfactory to the Indemnified Party. By the Indemnifying Party’s assumption of
such defense, the applicable claim, suit or proceeding will be conclusively established as being within the scope of the Indemnifying
Party’s indemnification obligations to the Indemnified Party under Section 6.02 or 6.03, as applicable. If the Indemnifying
Party assumes such defense, the Indemnified Party shall have the right to participate in the defense thereof and to employ counsel,
at its own expense, separate from the counsel employed by the Indemnifying Party. Counsel selected by the Indemnifying Party shall
have the lead role in any subsequent litigation. Whether or not the Indemnifying Party chooses to assume the defense of any such
claim, suit, action or proceeding, all of the Parties hereto shall cooperate in the defense or prosecution thereof. 

(c)               
For purposes of this Section 6.04, the term “Indemnified Party” shall mean
any person entitled to indemnification under the terms of this Agreement, and the term “Indemnifying Party”
shall mean any person from whom an Indemnified Party is entitled to seek indemnification under the terms of this Agreement. 

 

Section
6.05        Tax
Treatment of Indemnification Payments. All indemnification payments made by Seller under this Agreement shall be treated by
the parties as an adjustment to the Purchase Price for tax purposes, unless otherwise required by law.

 

Section
6.06        Effect
of Investigation. Either party’s right to indemnification or other remedy based on the representations, warranties, covenants
and agreements of the other as contained herein will not be affected by any investigation conducted by that party with respect
to, or any knowledge acquired by the party at any time, with respect to the accuracy or inaccuracy of or compliance with, any such
representation, warranty, covenant or agreement.

 

Section
6.07        Cumulative
Remedies. The rights and remedies provided in this Article VI are cumulative and are in addition to and not in substitution
for any other rights and remedies available at law or in equity or otherwise.

 

Article
VII

Miscellaneous

 

Section
7.01        Expenses.
All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the
party incurring such costs and expenses.

 

Section
7.02        Notices.
All notices, requests, consents, claims, demands, waivers and other communications hereunder shall be in writing and shall be deemed
to have been given (a) when delivered by hand (with written confirmation of receipt); (b) when received by the addressee if sent
by a nationally recognized overnight courier (receipt requested); (c) on the date sent by facsimile or e-mail of a PDF document
(with confirmation of transmission) if sent during normal business hours of the recipient, and on the next business day if sent
after normal business hours of the recipient; or (d) on the third day after the date mailed, by certified or registered mail, return
receipt requested, postage prepaid. Such communications must be sent to the respective parties at the following addresses (or at
such other address for a party as shall be specified in a notice given in accordance with this Section 7.02):

 

	If to Seller:	
        Acacia Diversified Holdings, Inc.

        Facsimile: (877) 513-6295

        E-mail: steve.sample@acacia.bz

        Attention: Steven L. Sample, CEO

         

	If to Buyer CEL:	
        Citrus Extracts, LLC

        Facsimile:(515) 253-0942

        E-mail: akoch@WEBILD.com

        Attention:Al Koch, Co-Manager

 

 

If to Buyer CETS:Citrus Extracts
Transport Services, LLC

Facsimile:
(515) 253-0942

E-mail:
akoch@WEBILD.com

Attention:Al
Koch, Co-Manager

 

Section
7.03        Headings.
The headings in this Agreement are for reference only and shall not affect the interpretation of this Agreement.

 

Section
7.04        Severability.
If any term or provision of this Agreement is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality
or unenforceability shall not affect any other term or provision of this Agreement or invalidate or render unenforceable such term
or provision in any other jurisdiction.

 

Section
7.05        Entire
Agreement. This Agreement and the documents to be delivered hereunder constitute the sole and entire agreement of the parties
to this Agreement with respect to the subject matter contained herein, and supersede all prior and contemporaneous understandings
and agreements, both written and oral, with respect to such subject matter, including any letter of intent. In the event of any
inconsistency between the statements in the body of this Agreement and the documents to be delivered hereunder, the Disclosure
Schedule (other than an exception expressly set forth as such in the Disclosure Schedules) and any other exhibit or attachment
hereto, the statements in the body of this Agreement will control. The recitals to this Agreement are incorporated by this reference.

 

Section
7.06        Successors
and Assigns. This Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective
successors and permitted assigns. Neither party may assign its rights or obligations hereunder without the prior written consent
of the other party, which consent shall not be unreasonably withheld or delayed. No assignment shall relieve the assigning party
of any of its obligations hereunder.

 

Section
7.07        No
Third-party Beneficiaries. Except as provided in Article VI, this Agreement is for the sole benefit of the parties hereto and
their respective successors and permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any
other person or entity any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Agreement.

 

Section
7.08        Amendment
and Modification. This Agreement may only be amended, modified or supplemented by an agreement in writing signed by each party
hereto.

 

Section
7.09        Waiver.
No waiver by any party of any of the provisions hereof shall be effective unless explicitly set forth in writing and signed by
the party so waiving. No waiver by any party shall operate or be construed as a waiver in respect of any failure, breach or default
not expressly identified by such written waiver, whether of a similar or different character, and whether occurring before or after
that waiver. No failure to exercise, or delay in exercising, any right, remedy, power or privilege arising from this Agreement
shall operate or be construed as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege
hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

Section
7.10        Governing
Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of Florida without
giving effect to any choice or conflict of law provision or rule (whether of the State of Florida or any other jurisdiction).

 

Section
7.11        Submission
to Jurisdiction. Any legal suit, action or proceeding arising out of or based upon this Agreement or the transactions contemplated
hereby may be instituted in the federal courts of the United States of America or the courts of the State of Florida in each case
located in the city of Orlando and county of Orange and each party irrevocably submits to the exclusive jurisdiction of such courts
in any such suit, action or proceeding.

 

Section
7.12        Waiver
of Jury Trial. Each party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve
complicated and difficult issues and, therefore, each such party irrevocably and unconditionally waives any right it may have to
a trial by jury in respect of any legal action arising out of or relating to this Agreement or the transactions contemplated hereby.

 

Section
7.13        Specific
Performance. The parties agree that irreparable damage would occur if any provision of this Agreement were not performed in
accordance with the terms hereof and that the parties shall be entitled to specific performance of the terms hereof, in addition
to any other remedy to which they are entitled at law or in equity.

 

Section
7.14        Counterparts.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed
to be one and the same agreement. A signed copy of this Agreement delivered by facsimile, e-mail or other means of electronic transmission
shall be deemed to have the same legal effect as delivery of an original signed copy of this Agreement.

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers
thereunto duly authorized.

 

[SIGNATURE PAGE TO FOLLOW]

    	 

    	 

    

SIGNATURE PAGE TO ASSET
PURCHASE AGREEMENT

 

	 	
        Acacia Diversified Holdings, Inc.

         

	 	
        By__/s/ Steven L. Sample___

        Name: Steven L. Sample

        Title: Chief Executive Officer

 

	 	
        Citrus Extracts, Inc.

         

	 	
        By__/s/ Steven L. Sample___

        Name: Steven L. Sample

        Title: Chief Executive Officer

 

	 	
        Acacia Transport Services, Inc.

         

	 	
        By__/s/ Steven L. Sample___

        Name: Steven L. Sample

        Title: Chief Executive Officer

 

	 	
        Citrus Extracts II, LLC

         

	 	
        By__/s/ Alan Koch________

        Name: Alan Koch

        Title: Co-Manager

         

	 	
        Citrus Extracts Transport Services, LLC

         

        By: Citrus Extracts II,
        LLC, its Managing Member

         

	 	
        By:__/s/ Alan Koch______

        Name: Alan Koch

        Title: Co-Manager

	 	 

 

	 
	 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Asset Purchase Agreement]

 SCHEDULE 1.01

PURCHASED ASSETS

 

Assets to be Conveyed from CEI and ADH
to CEL

 

	Item	Qty.	Description or Notes
	 
	 	 	 
	 	 	 
	Reactor Tanks 750 Gallon Capacity	2	Portable. 750 gallon capacity each.
	Fruit Bins	25	46" X 46" X 28" - Subject to variation in Qty
	Agitator	1	Lightnin, single impeller Prox 5 HP
	Assorted Break Room Items	1	Refirgerator, chect freezer, furniture Bldg. 12-E
	Assorted Lab Equipment	1	Blender, mill, Tyler sieve shaker, vacuum sealers, etc.
	Assorted Machinery & Equipment - 1	1	3 Portable pressure washers, 2 hyd. Pallet jacks, alum dock plate, extra propane tanks
	Assorted Machinery & Equipment - 2	1	S/s hoppers, conveyors, motors, pumps, hoses, etc.
	Assorted Office Items	1	Office desks, chairs, furniture in 12-E
	Inclined Auger Conveyor	1	9" Diameter, stainless steel w/motor
	Continuous Conveyor	1	Rubber belt type
	Continuous Inclined Conveyor	1	Inclined rubber belt type
	Vincent Dehydration Press	1	Model KP-10-K76 S/N 98027-C Stainless Steel
	Fruit Bin Dump Table	1	S/S hopper, 6' dia., 15' auguer conveyor
	Erriez Vibratory Conveyor	1	"Hi-Vi" Model.Stainless.  Covered. Incl. motor
	Filling Stand for SuperSacks	1	S/S
	FMC Vibratory Conveyor	1	Prox. 34" X 13"  w/drive supports and motor
	Fitzmill Hammermill	1	Cominutor Model DA06 S/N 7000
	Hoist System	1	Single girder prox. 15" span w/support and 1,000 lb hoist
	Hydraulic Dumper, Hopper, & Conveyor	1	10-15 HP Hydraulic power unit w/hopper
	Hyster Model S50XL Forklift Truck	1	S/N C187V02929N. 5,000 lb cap.  LP gas.Side shifter, etc.
	LOMA Systems Metal Detector	1	Model IQ2.  Gravity flow type.
	Safeline Metal Detector	1	Gravity flow type
	Newlong Sewing Machine	1	Model NP-7A.  For closing SuperSacks and bags
	Piedmont Vibratory Conveyor	1	Model 990089
	Reactor Tank 750 Gallon Capacity	1	750 gal. capacity stainless steel
	Reitz Model RSP-6-K2 Screw Press	1	 S/N RSP-86003801 Stainless steel. W/motor, drive, support stand
	Rice Lake Digital Platform Scale	1	48" X 48"
	Rice Lake Rough Deck Digital Scale	1	Weigh-Tronix Model 350 "Rough Deck" 48" X 48"  
	Polypropylene Storage Tank 4000 Gallon Capacity	1	Vertical setup
	SWECO Model LS48C68 SEPARATOR w/Stand	1	S/N LS48C-848-873-63 48" Diameter 4-Deck. 1200 RPM
	URSHEL Comitrol #3600 Dicer	1	S/N 876 Used in production - Bldg 12-E
	Urschel #RA-D Dicer	1	GL 140677 Urschel Dicer, Model RA-D s/n #1597 (UPSTAIRS)
	Wolverine-Proctor Oven	1	Stainless Steel Bed and Conveyor.  3 Burners
	Caterpillar A200 GC25K Forklift Truck	1	Acquired following end of lease term August 2014
	Ohaus SD75L Platform Scale	1	New
	Fruit Bins	50	46" X 46" X 28" - Subject to variation in Qty
	Auger Conveyor and Stainless Steel  Fabrications	1	For discharge end of Wolverine Proctor Dryer
	SWECO Screens	3	Added after RPE asset acquisition
	Fitzmill Screens	2	Added after RPE asset acquisition
	Freemachine	1	Acquired from RPE
	Urschel 180U Cutting Head	1	New spare for peel cutter
	Load Leveler 1,000 pound capacity	1	New
	Electric chain hoist 2,000 pound capacity	1	New
	Flex Neck Digital Imaging Camera	1	New
	Lenovo 8705-CTO Tower Case PC with Software	1	With Windows, MS Office, etc.
	HP Tower Case Pavillion PC with Software	1	With windows, MS Office, etc
	HP OfficeJet 4630All-in-One	1	Printer/fax/copier
	HP G7 Laptop Computer	1	With Windows, MS Office, Etc.
	Ice Machine for Bldg. 12-E	1	Stand alone model
	40' Standard Height  Shipping Container for CEI Storage	 	Storage Container (#1) (From RPE)
	Dual halogen light stand	1	Work light
	Dollies (as casters) for moving heavy machinery	4	New
	Drill press	1	New
	Portable Generator	1	Approximately 900 watts.  New.
	Portable Generator	1	4,000 watts.  New.
	Steel dock plate	1	Purchsed new from Uline
	SuperSacks	240	Inventory - Subject to variation in Qty
	SuperSack Liners	108	Inventory - Subject to variation in Qty
	Product Boxes	500	Inventory - Subject to variation in Qty
	Poly Liners for Product Boxes	800	Inventory - Subject to variation in Qty
	Stainless Steel Screw Conveyor	1	SS Screw conveyor 12’ x 28” w/1 hp drive motor
	Stainless Steel Screw Conveyor	1	18’ x 14” SS screw conveyor (no gearbox or motor)
	Stainless Steel Screw Conveyor	1	12’x 14” SS screw conveyor
	Stainless Steel Screw Conveyor	1	36’ x 16” SS screw conveyor w/gearbox
	Stainless Steel Screw Conveyor	1	12’ x 12” SS screw conveyor
	Stainless Steel Screw Conveyor	1	36’ x 12” SS screw conveyor
	Stainless Steel Screw Conveyor	1	30’ x 12” SS screw conveyor w/7.5 hp motor
	Stainless Steel Screw Conveyor	1	36’ x 14” SS screw w 10 HP motor
	Stainless Steel Screw Conveyor	1	12’ x 14”SS  screw with 15 HP motor
	Stainless Steel Screw Conveyor	1	24’ x 16” SS screw w/10 HP motor
	Stainless Steel Screw Conveyor	1	12’ x 20” SS screw with 15 HP motor
	Stainless Steel Screw Conveyor	1	24’ x 24” SS screw w/15HP motor
	Stainless Steel Screw Conveyor	1	10' x 9" SS screw w/5HP motor
	Stainless Steel Screw Conveyor	1	10' x 9' SS screw w/5HP motor
	Stainless Steel Screw Conveyor	1	5' x 9" SS screw w/5HP motor
	Stainless Steel Bin	1	Stainless Steel Unloading Bin, 102” x 102” x 136”
	Insulated Stainless Steel Tank	1	Double Wall SS Insulated Tank w/7-1/2 HP motor
	Metal Storage Container	1	Metal Storage Container
	Urschel Cutting Machine	1	Urschel Comitrol 3640 w/40 hp motor
	Urschel Cutting machine	1	Urschel Comitrol 3640 w/40 hp motor
	Metal detector	1	Metal Detector, Safe Line
	Belt Conveyor	1	Belt Conveyors 18” x 21’ and 20” x 26’
	Stainless Steel Belt Conveyor	1	Belt Conveyors 20” x 16’ Stainless Steel
	Pump	1	Moyno Pump, 7-1/2 HP motor and drive
	Pump	1	Moyno Pump, 5 HP motor and drive
	Pump	1	Progressive Cavity Pump w/5HP motor and drive
	Pump	1	Moyno pump w/var speed drive 7HP
	Pump	1	Monyo pump w/5HP drive motor
	Pump	1	Durco pump or shredder with 40 HP drive motor
	Pump	1	Monyo pump w/20 HP drive
	Bagging/Loading System	1	Bagging/Tote Loading System
	Vibratory Screen deseeder/Conveyor w/Motor	1	Deseeder (vibratory screen) and conveyor w/5hp motor
	Bulker	1	Griffin Bulker
	Heat Exchanger	1	Gosset Heat Exchanger Model ITT 7t
	Pallets	40	Inventory - Subject to variation in Qty
	Forklift ramp - Heavy Duty Steel	1	Forklift ramp from ground to loading deck height
	Prepaids (Insurance, etc.)	 	Estimated for March 31 closing
	Licenses, certifications, subsidies, etc.                         (INSOFAR AS ANY OF THESE MAY BE TRANSFERRED BY SELLER TO BUYER)	1	Food license, Organic Certification License, Kosher Certification, HACCP System, State of Florida rent subsidy certification, etc.
	Service deposits	1	Fort Pierce Utility Authority deposit (prox) $12,000 Transferred to Buyer by CEI and/or Red Phoenix Extracts with full authority of Red Phoenix (Subject to the terms and conditions of Section 5.09 of the Agreement)
	Finished NON-ORGANIC Product Inventory as of Closing.	220,794	 
	Finished ORGANIC Product Inventory as of Closing.	143,568	 
	Description of Intellectual Property of Seller related to CEI to be transferred to Buyer as Assets:
	Trade Secret Intellectual Property – Emulsion System:	1	 
	Trade Secret Intellectual Property – CitraBlend Peel Processing System:	1	 
	Technical information, data, customer lists, price lists, process technology, plans, and drawings including the names and all corporate and fictional business names, trading names, registered and unregistered trademarks, service marks, and applications (collectively, the “Marks”); all patents, patent applications, and inventions and discoveries that may be patentable (collectively, “Patents”); all copyrights in both published works and unpublished works (collectively, the “Copyrights”); all contracts and agreements, including the Profit Share Agreement with Uncle Matt's Organic or otherwise (collectively, "Contracts"); all websites, e-mail addresses, and domain names (collectively the "Internet Technology"); and all know-how, trade secrets, confidential information, software, (collectively, the “Trade Secrets”).	1	Buyer shall not use the word "Acacia" in his business or trade activities.
	Total Buyer’s Valuation of Intellectual Property	1	 
	Goodwill	1	Goodwill relating to Citrus Extracts, Inc.
	(Assets of Acacia Diversified Holdings, Inc. relating to Acacia Milling Services)
	Urschel Comitrol 3640	1	Milling Machine S/N 673
	Microscope-3 Turrets with Digital Imaging	1	New
	Steel scaffold/stanchion	1	Acquired by AMS
	Dust collection units with motors, etc.	2	Acquired by AMS
	Champion Commercial Air Compressor	1	Prox. 80 gallon tank
	Drill Press	1	New
	Brother HL5370DW Laser Printer	1	Acquired by AMS
	HP Printer/Scanner	1	Acquired by AMS
	Bissell Vacuum Cleaner	1	Acquired by AMS
	4' Tilt Dumpster	1	Acquired by AMS
	Wood Double Pedestal Desk w/Glass Top	2	Acquired by AMS
	High Back Executive Swivel Chair	2	Acquired by AMS
	Secretarial Desk with Return	1	Acquired by AMS
	Mint Green Sofa with Table & Magazine Rack	1	Acquired by AMS
	Fire King Fireproof File Cabinet	1	Acquired by AMS
	Shaw-Walker Heavy Duty Floor Safe	1	Acquired by AMS 25" X 27" X 52" 
	Misc. Office Furnishings	1	Acquired by AMS
	100 Foot Heavy Duty Electrical Cord	1	Acquired by AMS
	HotPoint Refrigerator Freezer	1	Acquired by AMS
	GE Microwave Oven	1	Acquired by AMS
	GE Coffeemaker	1	Acquired by AMS
	All customer lists, price lists, contracts and agreements, including those with Citrus Extracts, Inc.	1	Buyer shall not use the word "Acacia" in his business or trade activities.
	
         

         

         

         

         

         

	 

Assets to be Conveyed from ATS to CETS

 

	Item	Qty.	Description or Notes
	 
	 	 	 
	 	 	 
	Assets to be Conveyed by Acacia Transport Services, Inc. to Citrus Extracts Transport Services, LLC
	2006 IHC 8600 Tandem Axle Road Tractor	1	Acquired July 2014 - Hydraulic wetline kit, 1 yr/100,000 mi warranty good till 8-8-2015 572,000 miles, whichever occurs first.
	2004 IHC 9200 Tandem Axle Road Tractor	1	Acquired July 2014 - Hydraulic wetline kit.
	1986 IHC F1954 tandem Axle Road Tractor	1	Acquired July 2014 - Used as "yard" tractor
	1987 IHC 1600 Flatbed Truck W/Stainless Tank	1	Electric-powered stainless screw unloader
	1974 Summit Tandem Axle Aluminum Dump Trailer	1	Acquired July 2014
	1981 Hardee Tandem Axle Aluminum Dump Trailer	1	Acquired July 2014
	1990 Summit Tandem Axle Aluminum Dump Trailer	1	Acquired July 2014
	1994 Dorsey Tandem Axle Aluminum Dump Trailer	1	Acquired July 2014
	1996 Benson Tandem Axle Aluminum Dump Trailer	1	Acquired July 2014
	1996 STRIK 53' Tandem Axle Van Trailer	1	Acquired July 2014
	40' X 8' Hi-Cube Shipping Container for Storage	1	Storage container #2 (Acquired by ATS)
	40' X 8' Hi-Cube Shipping Container for Storage	1	Storage container #3 (Acquired by ATS)
	Inventory of tires, wheels, parts, tools, etc. (new & used)	1	Acquired from Lane Trucking
	Wetline Hydraulic Kits for Tractors	3	Acquired from Lane Trucking
	Prepaid permits, licenses, insurance	1	Estimated for March 31st closing
	External Electric fuel transfer pump unit	1	12 V with fittings, hoses, 
	Portable mechanics tool kit	1	For field use on trucks
	Portable paint sprayer unit	1	For field use on trucks
	20 Ton bottle jack	1	New
	8" Bench grinder with stand	1	New
	Prepaids (Insurance, etc.)	1	Estimated for March 31st closing
	Licenses, permits, etc.	1	Estimated for March 31st closing
	2,000 pound capacity chain hoise	1	New
	Service deposits	1	Cash deposit on file with Fuelman to guarantee payment performance of fuel credit card account
	Description of Intellectual Property of Seller related to ATS to be transferred to Buyer as Assets:
	All customer lists and price lists; all contracts and agreements, including those with Lambeth Groves Juice Company, Davie Dairy, or otherwise (collectively, "Contracts"); and, all trade secrets and confidential information (collectively, the “Trade Secrets”).	1	Buyer shall not use the word "Acacia" in his business or trade activities.
	Goodwill	1	Goodwill relating to Acacia Transport Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 

    	 

    

SCHEDULE 1.02

EXCLUDED ASSETS

 

Listing of Assets to Be Excluded
from the Transactions

 

Item

 

Items and assets to be excluded from the transaction include
any and all asset items owned by

Acacia Diversified Holdings, Citrus Extracts, Inc., Acacia
Transport Services, Inc. and Acacia

Milling Services that are not included in the definition
of “Purchased Assets”, including but not

limited to the following:

 

Licenses, permits, certificates, certifications, subsidies,
etc. including but not limited to USDA

Phytosanitary Certificate, USDA Organic Certificate, Americert
Organic Certification, Kosher

Certification, HACCP System, Florida Department of Agriculture
Annual Food Permit, State of

Florida rent subsidy certification, etc. that cannot be
transferred to Buyer by law, rule or

otherwise.

 

Tent, test equipment, miscellaneous items and records of
activities outside the scope of the Seller

Businesses, all of which are located in Bldg. 12-W and otherwise.

 

"Millie Junior" Chinese Milling Machine

 

Laptop computer used by Bill Sample (Acacia Diversified
has provided a Lenovo 8705-CTO

tower case pc as a replacement)

 

Ford 755B backhoe

 

The name "Acacia"; its trademarks, service marks,
or logos using the name “Acacia”; or any use thereof.

 

Seller's Cash and Cash Equivalents, Accounts and Notes Receivable
and related monetary

assets.

 

All Ocion chemicals and products located onsite

 

The License Agreement dated January
1, 2015 between NW Ingredients, Inc. and Citrus Extracts, Inc.

 

Ft. Pierce State Farmers’ Market Commercial Lease
between the State of Florida Department of Agriculture and Consumer Services and Citrus Extracts Inc. dated February 14, 2014 (Unit
12 East), as extended by the Extension of Term Notice dated April 22, 2014

 

Ft. Pierce State Farmers’ Market Commercial Lease
between the State of Florida Department of Agriculture and Consumer Services and Citrus Extracts Inc. dated January 30, 2014 (Warehouse/Office
Unit 12 West), as extended by the Extension of Term Notice dated April 22, 2014

 

ADH Licensed Software (as defined in
the APA)

 

All items not included in the definition
of “Purchased Assets” and owned by Red Phoenix

Extracts, Inc., Natural Citrus Products
Corporation, or other organization(s) diverse from Acacia

Diversified, CEI and ATS and which
are and have been stored on the CEI premises. These items

include but are not limited to pallets
loaded with miscellaneous parts and equipment currently

stored in Building 5-E, 12-E (including
the mezzanine thereto) and 12-W, other parts, supplies,

and parts, equipment and supplies stored
in those same areas but not palletized, two large

electrical control panels currently
stored in steel storage container domiciled on the outside lot of

Building 12-E, and all items stored
in the area commonly referred to as the "Bone Yard"

consisting of outside storage maintained
by Natural Citrus Products Corporation in a diverse area

of the Fort Pierce State Farmers Market.

 

All other items as are not included in the definition of
“Purchased Assets”.

    	 

    	 

    

SCHEDULE 1.04

WIRE TRANSFER INSTRUCTIONS; PAYOFFS;
TRADE PAYABLES

 

 

 

 

Disbursements to be made at Closing from the Purchase
Price:

 

	Recipient – Creditors/Trade Payables	Amount
	Florida Community Bank	$129,557.73
	Natural Citrus Products Corporation	$189,000
	Red Phoenix Extracts, Inc	$74,950
	L. Palmer Sample	$63,920
	Kenneth E. Reeser MD, IRA 	$125,905.85
	Reesor Family Investments Custody Account 	$22,218.70
	David Lee Sadler Estate	$83,900
	Katy Sadler Prince Testamentary Trust	$6,200
	Alice L. Sample	$13,884
	William A. Sample	$5,862

 

	Recipient – Signatories to Non-Competition Agreements	Amount
	Edward W. Sample	$1,000
	William A. Sample	$1,000

 

The balance of the purchase price, being $1,845,415.94 after
payment of the relevant amounts above at closing (excluding payments for Non-Competition Agreements), will be paid to Acacia Diversified
Holdings, Inc.

 

Wire transfer instructions are as set forth in that certain
Funds Flow Memorandum dated as of the date of this Agreement between Buyer and Seller.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE 1.05

PURCHASE PRICE ALLOCATION

 

 

	 	 	Citrus Extracts II, LLC ($)	Citrus Extracts Transport Services, LLC ($)	Total ($)
	Finished Product Inventory	 	       458,474 	                  -   	       458,474 
	Parts/Supplies Inventory	 	           7,450 	         18,250 	         25,700 
	Equipment	 	   1,457,640 	       141,000 	   1,598,640 
	Non Compete Agreements	 	         50,000 	         50,000 	       100,000 
	Goodwill	 	       378,000 	                  -   	       378,000 
	Total	 	   2,351,564 	       209,250 	   2,560,814 
	 	 	 	 	 

 

 

 

 

SCHEDULE 3.02

REQUIRED CONSENTS

 

 

	Consent and approval of the shareholders of Seller, which was obtained
prior to Closing.

 

	Consents/Notices Required for Assignment of Assigned Contracts:

 

		·	Premises Usage Agreement between The Mushroom Guy and Citrus Extracts,
Inc. requires prior written consent of The Mushroom Guy to assign or sublease the agreement or the premises described therein.

 

		·	Definitive Supply and Profit Sharing Agreement between Uncle Matt’s
Organic, Inc. and Citrus Extracts, Inc. dated August 20, 2013, as extended by the Extension of Definitive Supply and Profit Sharing
Agreement dated June 25, 2015 between such parties, requires the prior written consent of the non-assigning party.

 

		·	Transport Agreement between Davie Dairy, Inc. and Acacia Transport
Services, Inc. dated June 26, 2015 provides that no party shall, without the prior written consent of the other party, which consent
shall not be unreasonably conditioned, withheld or delayed, assign or permit any transfer of the Agreement.

 

 

		·	Consents/Notices Required for Transfer of Assigned Permits:

 

		·	None

 

    	 

    	 

    

SCHEDULE 3.03

ENCUMBRANCES

 

 

None.

 

    	 

    	 

    

SCHEDULE 3.06(b)

INTELLECTUAL PROPERTY

 

	Citrus Emulsion System Trade Secret
	Citrus Peel Processing System Trade Secret
	Name “Citrus Extracts” and right to
use the same
	Name “CitraBlend” and the right to
use the same
	Assignment of current and future rights to allthingscitrus.com.
	Goodwill related to the Purchased Assets and the
Seller Businesses

    	 

    	 

    

 

SCHEDULE 3.07

ASSIGNED CONTRACTS

 

Assigned Contracts to CEL:

 

	Premises Usage Agreement between The Mushroom
Guy and Citrus Extracts, Inc.

 

	Definitive Supply and Profit Sharing Agreement
between Uncle Matt’s Organic, Inc. and Citrus Extracts, Inc. dated August 20, 2013, as extended by the Extension of Definitive
Supply and Profit Sharing Agreement dated June 25, 2015 between such parties.

 

 

 

Assigned Contracts to CETS:

 

	Modified and Extended Agreement for Citrus Peel
Hauling Services dated June 25, 2015 between Lambeth Groves Juice Company, Inc. and Acacia Transport Services, Inc.

 

	Transport Agreement between Davie Dairy, Inc.
and Acacia Transport Services, Inc. dated June 26, 2015.

 

 

 

    	 

    	 

    

SCHEDULE 3.08

ASSIGNED PERMITS

 

 

Certificates, Permits, and other
Authorizations of Seller, all of which will be Assigned Permits (Insofar as they are transferrable):

 

 

	Permit/Certification Name	Transferability 	Assignee (if applicable)
	USDA Organic Certification/Americert	Non-transferable; new application required 	 
	Food License	Non-transferable; new application required	 
	Kosher Certification	Non-transferable; new application required	 
	HACCP System	Non-transferable; new application required	 
	USDA Photosanitary Certificate	Non-transferable; new application required

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