Document:

THIS OPTION HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED. THE OPTIONEE WILL NOT TRANSFER THIS OPTION OR THE UNDERLYING COMMON SHARES UNLESS (I) THERE
IS AN EFFECTIVE REGISTRATION COVERING SUCH OPTION OR SUCH SHARES, AS THE CASE MAY BE, UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND APPLICABLE STATE SECURITIES LAWS, (II) AMERICAN EAGLE ENERGY CORPORATION FIRST RECEIVES A LETTER FROM AN ATTORNEY, ACCEPTABLE
TO IT, STATING THAT, IN THE OPINION OF THE ATTORNEY, THE PROPOSED TRANSFER IS EXEMPT FROM REGISTRATION UNDER THE SECURITIES ACT
OF 1933, AS AMENDED, AND UNDER ALL APPLICABLE STATE SECURITIES LAWS, OR (III) THE TRANSFER IS MADE PURSUANT TO RULE 144 UNDER THE
SECURITIES ACT OF 1933, AS AMENDED.

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

THIS STOCK OPTION
AGREEMENT (the “Agreement”) is made and entered into effective as of the 13th day of December,
2013 (the “Effective Date” or the “Grant Date”), by and between American Eagle Energy Corporation,
a Nevada corporation (“AMZG”), and James N. Whyte (the “Optionee”).

 

1.          Recitals.
Optionee is presently a member of the Board of Directors of AMZG. AMZG desires to provide Optionee with the opportunity to obtain
additional share ownership in AMZG so that Optionee may have a significant proprietary interest in AMZG's success. AMZG therefore
hereby issues Optionee this non-qualified option to purchase shares of its stock pursuant to the terms of, and subject to the conditions
set forth in, this Agreement.

 

2.          Shares
Subject to Option. As of the Effective Date, AMZG hereby grants to the Optionee the option (“Option”) to
purchase fifty thousand (50,000) shares of AMZG’s common stock (the “Optioned Shares”), at the price set
forth in the Paragraph of this Agreement entitled “Exercise Price” (the “Exercise Price”), subject
to the terms and conditions and within the period of time set forth in this Agreement. This Option is intended to be a non-statutory,
non-qualified stock option which does not qualify as an “incentive stock option” under Section 422 of the Internal
Revenue Code of 1986, as amended (the “Code”).

 

3.          Term.
This Agreement and the Option granted hereunder shall expire at 6:00 p.m. Mountain Time on the fifth anniversary of the Effective
Date. If all or any portion of this Option is unexercised upon the expiration of this Agreement, then, to that extent, this Option
shall be deemed to have been forfeited and of no further force or effect.

 

4.          Vesting.

 

4.1           Vesting
Schedule. Subject to the terms of the Subparagraph in this Agreement entitled “Change in Control,” the Option granted
hereunder shall vest as follows:  fifty percent (50%) of the Optioned Shares shall vest on December 13, 2014, and fifty percent
(50%) of the Optioned Shares shall vest on December 13 2015, in each event subject to the Optionee’s continued service as
an employee of, consultant to, or director of AMZG through such dates. From and after the respective vesting dates and through
the expiration hereof, the Option may be fully and immediately exercisable in whole or in part at any time and from time to time
in respect of such Optioned Shares.

 

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4.2           Change
in Control. Notwithstanding the vesting schedule set forth in the Subparagraph of this Agreement entitled “Vesting Schedule”
immediately above, if at any time prior to full vesting of all of the Optioned Shares and while Optionee is performing services
for AMZG a Change in Control (as that phrase is defined below) in AMZG occurs, Optionee’s grant and right to exercise this
Option shall immediately and fully vest and this Option shall immediately be exercisable as to one hundred percent (100%) of the
Optioned Shares (or such percentage of the Optioned Shares as may not then have been previously purchased) on the date immediately
preceding the consummation of such transaction. For purposes of this Agreement, “Change of Control” shall mean the
occurrence of any of the following events: (i) the consummation of any transaction after the Effective Date in which any person
or entity or group of related persons and\or entities becomes the beneficial owner, directly or indirectly, of securities representing
more than thirty percent (30%) of the combined voting power of AMZG’s then outstanding voting securities, or (ii) three or
more directors, whose election or nomination for election is not approved by a majority of the members of AMZG's Board of Directors
on the Effective Date, are elected within any twelve month period to serve on its Board of Directors, or (iii) any merger (other
than a merger in which AMZG is the survivor and there is no change of control pursuant to (i) or (ii) of this sentence), reorganization,
consolidation, liquidation, winding up or dissolution of AMZG or the sale of all or substantially all of its assets.

 

5.          Exercise
Price. Subject to the provisions of the Paragraph in this Agreement entitled “Vesting” and for adjustment
in the manner provided below, the exercise price for each Optioned Share shall be the average of the closing price of AMZG’s
common stock for the five trading days preceding the Grant Date, which is two and 17/100s US Dollars ($2.17).

 

6.          Method
of Exercise. This Option shall be deemed to be exercised when written notice identifying the number of Optioned Shares as to
which this Option is then being exercised has been provided to AMZG in accordance with the terms of this Option and full payment
for the Optioned Shares with respect to which the Option is exercised has been received by AMZG. Upon the exercise of this Option
in whole or in part and payment of the Exercise Price in the manner provided by this Agreement, AMZG shall, as soon thereafter
as practicable, deliver to the Optionee a certificate or certificates for the shares purchased. The Exercise Price for the Optioned
Shares to be purchased upon the exercise of the Option may be paid (i) in cash or cash equivalents, (ii) by delivery (by either
actual delivery or attestation) of AMZG shares of its common stock already owned by the Optionee, having a Fair Market Value, defined
below, on the date of exercise less than (with the balance paid in cash or cash equivalents) or equal to the aggregate Exercise
Price for the purchased shares, (iii) to the extent permitted by law, by a “cashless exercise” procedure approved by
AMZG in the exercise of its reasonable discretion, or (iv) by a combination of the foregoing methods. The term “Fair Market
Value” for shares of AMZG’s common stock on any particular date shall mean the last reported sale price of the common
stock on the principal market on which the common stock trades on such date or, if no trades of common stock are made or reported
on such date, then on the next preceding date on which the common stock traded. If AMZG’s common stock ceases to be traded
on any market, the Optionee and the Board of Directors of AMZG shall mutually agree upon an alternative method of determining the
Fair Market Value for shares of AMZG’s common stock.

 

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7.          Withholding.
AMZG may, in its discretion, require that the Optionee pay to it at or after the time of the exercise of any portion of this Option
any such additional amount as AMZG deems necessary, in the exercise of its reasonable discretion, to satisfy its liability to withhold
federal, state, or local income tax or any other tax incurred by reason of the exercise of this Option. The Optionee may satisfy
this requirement by (i) tendering to AMZG shares of AMZG’s common stock already owned by the Optionee, which, in the case
of shares of common stock purchased by the Optionee pursuant to the exercise of an option granted by AMZG, have been held by the
Optionee for at least six months following the date of such purchase or (ii) by electing to have AMZG withhold from delivery Optioned
Shares, provided that, in either case, such shares have a Fair Market Value equal to the minimum amount of tax required to be withheld.
Such shares shall be valued on the date as of which the amount of tax to be withheld is determined. Fractional share amounts shall
be settled in cash. Such election may be made with respect to all or any portion of the Optioned Shares to be delivered pursuant
to exercise of this Option.

 

8.          Adjustment
of Optioned Shares. In the event that there is any stock dividend, stock split, reverse stock split, combination, reclassification,
reorganization, recapitalization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of common stock
or other securities of AMZG, issuance of warrants or other rights to purchase common stock or other securities of
AMZG, or other similar corporate transaction or events that affect the common stock of AMZG
such that an adjustment is necessary to prevent dilution or enlargement of the benefits or potential benefits intended to be made
available pursuant to this Option, then the number of unexercised Optioned Shares subject to this Option and the exercise price
per share of such Optioned Shares shall be proportionately adjusted.

 

9.          Option
Non-Transferable. This Option shall not be transferable other than by will or the laws of descent and distribution and this
Option shall be exercisable during the Optionee’s lifetime only by the Optionee or his/her guardian or legal representative.
Any purported assignment of this Option, or of any right or privilege conferred hereunder, contrary to the provisions hereof shall
be null and void.

 

10.         Laws
and Regulations. No shares of common stock shall be issued under this Option unless and until all legal requirements applicable
to the issuance of such shares have been complied with to the satisfaction of AMZG in the exercise of its reasonable discretion.

 

11.         Rights
in Stock Before Issuance and Delivery. The Optionee shall not be entitled to the privileges of stock ownership in respect of
any shares issuable upon exercise of this Option, unless and until such shares have been issued to the Optionee by AMZG. Except
as provided in this Agreement, no adjustment shall be made in the number of shares of common stock issued to the Optionee or in
any other rights of the Optionee upon exercise of this Option by reason of any dividend (other than a stock dividend), distribution,
or other right granted to AMZG’s stockholders for which the record date is prior to the date of exercise of this Option.

 

12.         Tax
Consequences.

 

12.1         Section
409A. This Option is intended to meet the requirements of Internal Revenue Code Section 409A and the Treasury Regulations promulgated
thereunder. If the Option contained in this Agreement is determined to be taxable to the Optionee and/or to AMZG, then AMZG, after
consultation with the Optionee, shall have the authority to adopt, prospectively or retroactively, such amendments to this Agreement
that AMZG determines in its reasonable discretion to be appropriate to: (i) exempt the transactions contemplated under this Agreement
from Section 409A; (ii) make this Agreement comply with the requirements of Section 409A; or (iii) avoid more generally the
adverse tax consequences of Section 409A as it applies to this Agreement.

 

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12.2         Other
Tax Consequences. Except as otherwise provided in this Agreement, the Optionee acknowledges that AMZG has not made any representations
or warranties to the Optionee with respect to the tax consequences related to the transactions contemplated in this Agreement,
and the Optionee is in no manner relying on AMZG or its representatives for an assessment of such tax consequences. The Optionee
acknowledges that (i) there may be adverse tax consequences upon acquisition or disposition of this Option or the Shares subject
to this Option, (ii)  AMZG has no responsibility to the Optionee to ensure any particular tax result, and (iii) Optionee should
consult his/her own tax advisor prior to the acquisition, exercise, or disposition of this Option and the underlying Shares with
regard the particular tax treatment of this Option as it relates to the Optionee.

 

13.         Miscellaneous.

 

13.1         Agreement
Binding. This Agreement shall be binding upon the parties, their legal representatives, and permitted successors and assigns.

 

13.2         Entire
Agreement. This Agreement supersedes any statements, representations, or agreements of AMZG with respect to the grant of the
Option made herein and any related rights set forth herein and affecting the grant of this Option and the Optionee hereby waives
any rights or claims related to any such statements, representations, or agreements. Except to the extent specifically set forth
herein, this Agreement does not supersede or amend any existing agreement, between the Optionee and AMZG. No addition to or modification
of any provision of this Agreement shall be binding upon the Optionee or AMZG unless made in writing and signed by both the Optionee
and AMZG.

 

13.3         Notice.
All notices, demands or other communications to be given or delivered under or by reason of the provisions of this Agreement shall
be in writing and shall be deemed to have been given (a) when delivered to and received personally by the recipient, (b) when sent
to and received by the recipient by facsimile (receipt electronically confirmed by sender’s facsimile machine) if during
normal business hours of the recipient, otherwise on the next business day, (c) one business day after the date when sent to the
recipient by reputable express overnight courier service (charges prepaid) and delivery confirmed, or (d) three business days after
the date when mailed to the recipient by certified or registered mail, return receipt requested and postage prepaid and such receipt
is confirmed. Such notices, demands and other communications shall be sent to the parties at the addresses indicated below or to
such other address as a party may direct on written notice given pursuant to the terms of this Sub-paragraph:

 

	 	If to the Optionee:	James N. Whyte
	 	 	 
	 	 	 
	 	 	Fax:	 
	 	 	 
	 	If to AMZG:	American Eagle Energy Corporation.
	 	 	2549 West Main Street, Suite 202
	 	 	Littleton, Colorado 80120
	 	 	Fax:  303-798-5767
	 	 	Attn:  Bradley Colby, Chief Executive Officer

 

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13.4         Non-Waiver.
No delay or failure by either party to exercise any right under this Agreement, and no partial or single exercise of that right,
shall constitute a waiver of that or any other right, unless otherwise expressly provided herein.

 

13.5         Governing
Law; Jurisdiction; Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of Colorado,
exclusive of the conflict of law provisions thereof. The parties agree that the District Court of the County of Arapahoe, State
of Colorado shall have exclusive jurisdiction, including in personam jurisdiction, and shall be the exclusive venue for
any and all controversies and claims arising out of or relating to this Agreement or a breach thereof, except as otherwise jointly
agreed upon by the parties.

 

13.6         Attorneys’
Fees. If any party shall commence any action or proceeding against another party in order to enforce the provisions hereof,
or to recover damages as the result of alleged breach of any of the provisions hereof, the prevailing party therein shall be entitled
to recover all reasonable costs incurred in connection therewith, including, but not limited to, reasonable attorney’s fees.

 

13.7         Gender
and Number. As used herein, the masculine gender shall include the feminine and neuter genders, and the singular shall include
the plural, and vice versa, where the context requires.

 

13.8         Caption.
All captions, titles, headings, and divisions hereof are for purposes of convenience and reference only and shall not be construed
to limit or affect the interpretation of this Agreement.

 

13.9         Counterparts
and Electronic Signatures. For the convenience of the parties, any number of counterparts of this Agreement may be executed
by any one or more parties hereto, and each such executed counterpart shall be, and shall be deemed to be, an original, but all
of which shall constitute, and shall be deemed to constitute, in the aggregate but one and the same instrument. This Agreement
may be circulated for signature through electronic transmission, including, without limitation, facsimile and email, and all signatures
so obtained and transmitted shall be deemed for all purposes under this Agreement to be original signatures until such time, if
ever, as original counterparts are exchanged by the parties.

 

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

 

	AMZG:
	AMERICAN EAGLE ENERGY CORPORATION
	 	 	 
	By:	/s/ Bradley Colby	 
	 	Bradley Colby, Chief Executive Officer	 
	 	 
	OPTIONEE: 	 
	 	 
	/s/ James N. Whyte	 
	James N. Whyte	 

 

    	5THIRD AMENDMENT TO PURCHASE, SALE
AND OPTION AGREEMENT

 

This Third
Amendment to Purchase, Sale and Option Agreement (this “Amendment”) is entered into as of March 27, 2014,
by and between USG Properties Bakken I, LLC, a Delaware limited liability company (“Seller”), and American
Eagle Energy Corporation, a Nevada corporation (“Buyer”). Seller and Buyer are sometimes referred to
herein individually as a “Party” and collectively as the “Parties.” NextEra Energy Gas
Producing LLC, a Delaware limited liability company (“NextEra”) joins in this Agreement for the purposes
set forth in Section 12(c) of the Original Agreement (as defined below) and AMZG, Inc., a Nevada corporation
("AMZG") joins in this Agreement for the purposes set forth in Section 4 below.

 

WHEREAS, Seller and
Buyer are parties to Purchase, Sale and Option Agreement dated as of August 12, 2013, as amended by letter agreement dated September
30, 2013 and by Second Amendment to Purchase, Sale and Option Agreement dated as of October 2, 2013, (as amended, the “Original
Agreement”) pursuant to which Seller agreed to sell and Buyer agreed to purchase certain undivided interests in certain
oil and gas assets in Divide County, North Dakota. Capitalized terms used but not defined herein are intended to have the meanings
set forth in the Original Agreement.

 

WHEREAS, the parties
desire to further amend the Original Agreement, as provided herein.

 

NOW THEREFORE, in consideration
of the mutual covenants, representations, warranties, conditions and agreements contained in this Amendment and the Original Agreement
and other valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as follows:

 

1. Section 1 A of the Original Agreement
is hereby amended by deleting from the first line thereof the following: “Exhibit A, Parts I, II, III, IV and V”
and replacing it with “Exhibit A, Parts I, II, III, IV, V and VII”.

 

2. Section 24 of the Original Agreement
is hereby amended by deleting clause (ii) of the third sentence of such section and replacing it with the following:

 

“(ii) in lieu of delivering
the Stipulation Seller shall deliver to Buyer one or more counterparts of the Second Stipulation of Interest and Cross-Conveyance
(the "Second Stipulation") in the form attached hereto as Exhibit D-3"”

 

3. Section 24 of the Original Agreement
is further amended by deleting from the fourth sentence of such section the reference to "Exhibit C" and replacing
it with "Exhibit C-3".

 

4. AMZG agrees to join in the execution
of the Second Stipulation for the purposes of curing certain title matters.

 

5. Exhibit D to the Original Agreement
is hereby deleted and replaced in its entirety by Exhibit D-3 attached hereto; Exhibit C to the Original Agreement
is hereby deleted and replaced in its entirety by Exhibit C-3 attached hereto.

 

    	 

    	 

    

 

6. This Amendment may be executed
in counterparts, each of which will constitute an original and all of which will constitute one document. This Amendment may be
executed and delivered by either or both of the parties by facsimile transmission or email of a PDF version (with confirmation
of transmission) of a signed counterpart of the signature page hereof to the other at the applicable facsimile number or email
address shown in Section 15 of the Original Agreement. This Amendment shall be considered for all purposes as prepared through
the joint efforts of the parties and shall not be construed against one party or the other as a result of the preparation, substitution
or other event of negotiation, drafting or execution hereof. After execution and delivery by facsimile or electronic transmission
or email, the parties agree to follow up with two originally executed counterparts and signature pages so that each party will
have a counterpart with original signature pages from both parties. 

 

IN CONFIRMATION OF THE ABOVE, Buyer
and Seller execute this Amendment as of the date first stated above, and the representatives executing on behalf of Buyer and Seller
each attests to his or her authorization by such execution.

 

	SELLER:  	 	BUYER: 
	 	 	 	 	 
	USG Properties Bakken I, LLC	 	AMERICAN EAGLE ENERGY CORPORATION
	 	 	 	 	 
	By:   	/s/ Lawrence A. Wall, Jr.	 	By:   	/s/ Brad Colby
	Lawrence A. Wall, Jr., President 	 	Brad Colby, President
	 	 	 	 	 
	NextEra Energy Gas Producing, LLC 	 	AMZG, INC.
	 	 	 	 	 
	By:   	/s/ Lawrence A. Wall, Jr.	 	By:   	/s/ Brad Colby
	Lawrence A. Wall, Jr President 	 	Brad Colby, President

 

    	 

    	 

    

 

EXHIBIT “A”

 

    	 

    	 

    

 

EXHIBIT “D-3”

 

SECOND STIPULATION OF INTEREST AND
CROSS-CONVEYANCE

 

THIS SECOND STIPULATION
OF INTEREST AND CROSS-CONVEYANCE (this “Second Stipulation”), effective as of June 1, 2013 at 12:01 a.m., local time
in Divide County, North Dakota (the “Effective Time”), is among USG Properties Bakken I, LLC a Delaware limited liability
company (“USG”), NextEra Energy Gas Producing, LLC (“NextEra”) with each of USG and NextEra having an address
at 601 Travis Street, Suite 1900, Houston, Texas 77002 and American Eagle Energy Corporation, a Nevada corporation (“AEE”),
and AMZG, Inc., a Nevada corporation ("AMZG") with each of AEE and AMZG having an address at 2549 W. Main Street, Suite
202, Littleton, Colorado 80120.

 

RECITALS

 

A.               
AEE and NextEra are parties to A.A.P.L. Form 610 -1989 Model Form Operating Agreement dated May 1, 2011 and A.A.P.L. Form610
-1989 Model Form Operating Agreements November 1, 2011 (together, the “Joint Operating Agreements”) respectively covering
the Spyglass and West Spyglass areas in Divide County, North Dakota.

 

 

B.                
Pursuant to the Area of Mutual Interest provisions of the Joint Operating Agreements AEE and NextEra jointly acquired leasehold
and mineral interests in certain lands located in Divide County, North Dakota, as more fully set forth in Exhibit A (the
"Land"). USG, an affiliate of NextEra, has acquired certain of NextEra’s interests in the Land (as defined below)
and has thereby become a party to the Joint Operating Agreements.

  

C.             
 Pursuant to Purchase Sale and Option Agreement dated August 12, 2013 between AEE and USG, as amended by first and second
amendments dated, respectively, September 30, 2013 and October 2, 2013 (as amended the “Purchase Agreement”), and as
implemented by that certain Stipulation of Interest and Cross-Conveyance (the "Original Stipulation") dated as of the
Effective Time recorded in the real property records of Divide County North Dakota in Book __ at page __ among AEE, USG and NextEra
the parties carried out the acquisition by AEE from USG and NextEra of sufficient interests in the Property (as defined below)
such that the interests held by AEE and USG are currently owned in the respective, relative ratios of (i) 65.625/34.375 for that
portion of the Property described in Part I of Exhibit A (Spyglass – Developed), (ii) 59.375/40.625 for that portion
of the Property described in Part II of Exhibit A (Spyglass – Non-developed), (iii) 56.25/43.75 for that portion of
the Property described in Part III of Exhibit A (W. Spyglass -- Developed), (iv) 43.75/56.25 for that portion of the Property
described in Part IV of Exhibit A (W. Spyglass-Non-developed) and (v) 69.0625/30.9375 for that portion of the Property described
in Part V of Exhibit A (SM Energy Leases – Spyglass Developed).

  

D.            
Pursuant to the exercise of the option granted to AEE in the Purchase Agreement AEE has agreed to purchase from USG and
USG has agreed to sell to AEE additional interests in the Property (as defined below).

 

E.             
Certain irregularities or gaps in the chain of title among the parties may exist and the parties desire to cure any such
irregularities or gaps by executing this Second Stipulation.

 

    	 

    	 

    

 

F.              
Part VI of Exhibit A to the Original Stipulation listed certain wellbores that have been or are to be drilled pursuant to
the Carry Agreement and Farm-Out Agreement both dated as of August 12, 2013 among USG, AEE, and AMZG, Inc., as amended, with the
express intent that the ownership interests in such well boreholes were not to be affected by the cross-conveyance language in
the Original Stipulation. Since the execution of such Carry and Farm-Out Agreements, the parties have agreed to change the location
of certain wellbores to be drilled pursuant to such Carry and Farm-Out Agreements, and desire to reflect such intention in this
Second Stipulation.

 

STIPULATION AND CROSS-CONVEYANCE

 

For and in consideration of the sum of
ten dollars ($10.00) and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, USG,
NextEra, AMZG and AEE do hereby sell, assign, transfer and convey to each other interests in the assets described below (the “Property”)
sufficient such that after giving effect to this assignment and cross-conveyance the respective, relative ownership interests of
AEE and USG in the Property will be (i) 75.00/25.00 for that portion of the Property described in Parts I, II, III, IV and VII
of Exhibit A and (ii) 77.50/22.50 for that portion of the Property described in Part V of Exhibit A, and neither NextEra
or AMZG will own any interest in any of the Property:

 

(a)The oil, gas
and mineral leases described in Exhibit A, insofar as they cover any or all of the lands described in Exhibit A (the “Lands”),
together with all rights, privileges and obligations appurtenant thereto, including rights in any unit in which said leases or
Lands are included (collectively the “Leases”), provided, however, that the ownership interests in the wellbores described
on Part VI of Exhibit A shall not be affected by this Second Stipulation;

 

(b) All oil, gas and condensate wells
(whether producing, not producing or abandoned), and all water source, water injection and other injection and disposal wells and
systems located on the Leases or the Lands, or used in connection therewith, including without limitation those described in Exhibit
A (collectively the “Wells”), together with all equipment, facilities, and fixtures located on or used in developing
or operating the Leases, the Lands, or the Wells, or producing, storing, treating or transporting oil, gas, water, or other products
or byproducts, including pipelines, flow lines, gathering systems, tank batteries, improvements, fixtures, inventory, movables
and immovables (collectively the “Lease Property and Equipment”);

 

(c)To the extent assignable or transferable,
all permits, licenses, easements, rights-of-way, servitudes, surface leases, surface use agreements, and similar rights and interests
applicable to or used in operating the Leases, the Lands, the Wells, or the Lease Property and Equipment (collectively the “Permits
and Easements”);

 

(d)To the extent assignable or transferable,
all contracts and contractual rights, obligations and interests, insofar as they relate to the Leases, the Lands, the Wells, the
Lease Property and Equipment or the Permits and Easements (the “Related Contracts”); and

 

(e)To the extent assignable or transferable,
all other tangibles, miscellaneous interests and other assets on or used in connection with the Leases, the Lands, the Wells, the
Lease Property and Equipment, or the Permits and Easements (collectively the “Miscellaneous Personal Property”), including
records, files, and other data that relate to the Leases, the Lands, the Wells, the Lease Property and Equipment, the Permits and
Easements, or the Related Contracts, and lease, land and well files, production records, title opinions, contract, regulatory and
environmental files, and geological and geophysical information (collectively the “Property Records”).

 

    	 

    	 

    

 

Each of USG, NextEra,
AMZG and AEE warrants that it has not granted, created or reserved any burden, claim or title defect that would cause the Net Revenue
Interest in a Lease or Well to be less than the Net Revenue Interest for such Lease or Well set forth in Exhibit A or the Working
Interest in a Lease or Well to be greater than the Working Interest for such Lease or Well set forth in Exhibit A, except for any
such excess Working Interest accompanied by a proportionate increase in the Net Revenue Interest for such Lease or Well.

 

For purposes of this
Second Stipulation, “Working Interest” shall mean, with respect to a Lease or Well the percentage interest in a Lease
or Well that is burdened with the obligation to bear and pay costs and expenses of maintenance, development and operations in connection
with such Lease or Well, without regard to royalties, overriding royalties, net profits interests or other similar burdens.

 

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

 

Except for the special
warranty of title set forth above, THE PARTIES CONVEY THE PROPERTY TO EACH OTHER WITHOUT AND EXPRESSLY DISCLAIM ANY EXPRESS, STATUTORY
OR IMPLIED WARRANTY OR REPRESENTATION OF ANY KIND, INCLUDING WARRANTIES RELATING TO (i) THE CONDITION OR MERCHANTABILITY OF THE
PROPERTY, (ii) THE FITNESS OF THE PROPERTY FOR ANY PARTICULAR PURPOSE, OR (iii) CONFORMITY TO MODELS OR SAMPLES OF MATERIALS. THE
PARTIES HAVE INSPECTED (OR HAVE BEEN GIVEN THE OPPORTUNITY TO INSPECT), THE PROPERTY AND ARE SATISFIED AS TO THE PHYSICAL, OPERATING,
REGULATORY COMPLIANCE, SAFETY AND ENVIRONMENTAL CONDITION (BOTH SURFACE AND SUBSURFACE) OF THE PROPERTY AND EXPRESSLY AND KNOWINGLY
ACCEPTS THE PROPERTY AS IS, WHERE IS, AND WITH ALL FAULTS AND DEFECTS AND IN ITS PRESENT CONDITION AND STATE OF REPAIR. Without
limiting the generality of the foregoing, no party makes any representation or warranty as to (i) the amount, value, quality,
quantity, volume or deliverability of any oil, gas or other minerals or reserves (if any) in, under or attributable to the Property,
(ii) the physical, operating, regulatory compliance, safety or environmental condition of the Property, (iii) the geological
or engineering condition of the Property or any value thereof; (iv) the ability of the Property to generate income or profits;
or (v) the cost of owning or operating the Property.

 

THE PARTIES AGREE THAT,
TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE DISCLAIMERS OF CERTAIN REPRESENTATIONS AND WARRANTIES CONTAINED IN
THIS STIPULATION OF INTEREST AND CROSS CONVEYANCEARE “CONSPICUOUS” DISCLAIMERS FOR THE PURPOSE OF ANY APPLICABLE LAW.

 

To the extent that
the Leases cover state or federal leases, separate assignments on the appropriate state or federal forms required for filing in
the applicable state or federal records are being delivered contemporaneously herewith. Such separate assignments are intended
to cover the same interests that are being conveyed hereby.

 

    	 

    	 

    

 

The Original Stipulation
is hereby amended by replacing Part VI of Exhibit A thereto with the Part VI of Exhibit A attached hereto. Such amendment will
be given effect as if it were executed at the time of the Original Stipulation.

 

This Second Stipulation
shall be governed, construed and enforced in accordance with the laws of North Dakota without regard to conflicts of law.

 

This Second Stipulation
shall extend to and shall be binding upon the successors and assigns of the Parties.

 

THIS SECOND STIPULATION
is executed by the parties as of the Effective Time.

 

	 	USG Properties Bakken I, LLC
	 	By:   	 /s/ Lawrence A. Wall, Jr.
	 	 	 Lawrence A. Wall, Jr.	,
	 	 	President	 
	 	 	 
	 	 	 
	 	American Eagle Energy Corporation
	 	 	 
	 	By:   	/s/ Brad Colby
	 	 	Brad Colby	,
	 	 	President	 
	 	 	 
	 	NextEra Energy Gas Producing, LLC
	 	 	 
	 	By:  	/s/ Lawrence A. Wall, Jr.
			Lawrence A. Wall, Jr. 	,
	 	 	President	 
	 	 	 
	 	 	 
	 	AMZG, Inc.
	 	 	 
	 	By:   	/s/ Brad Colby
	 	 	Brad Colby	,
	 	 	President	 

  

STATE OF      Texas         §

§ ss.

COUNTY OF      Harris     §

 

This instrument was
acknowledged before me on March 27, 2014, by Larry A. Wall, as President of USG Properties Bakken I, LLC, a Delaware Limited
Liability Corporation, on behalf of said Limited Liability Corporation. Witness my hand and official seal.

 

    	 

    	 

    

 

	 	Kristi McClellan
	 	NOTARY PUBLIC

  

	(SEAL)	My commission expires: June 25, 2017

 

STATE OF ________________§

§ ss.

COUNTY OF ______________§

 

This instrument was acknowledged before
me on _____________, 2014, by _____________, as ____________ of ____________________, a ____________________, on behalf of said
_____________ __________________. Witness my hand and official seal.

  

	 	 
	 	NOTARY PUBLIC

 

	(SEAL)	My commission expires: _________________, 20___

 

STATE OF ________________§

§ ss.

COUNTY OF ______________§

 

This instrument was acknowledged before
me on _____________, 2014, by _____________, as ____________ of ____________________, a ____________________, on behalf of said
_____________ __________________. Witness my hand and official seal.

 

	 	 
	 	NOTARY PUBLIC

 

	(SEAL)	My commission expires: _________________, 20___

 

STATE OF ________________§

§ ss.

COUNTY OF ______________§

 

    	 

    	 

    

 

This instrument was acknowledged before
me on _____________, 2014, by _____________, as ____________ of ____________________, a ____________________, on behalf of said
_____________ __________________. Witness my hand and official seal.

 

	 	 
	 	NOTARY PUBLIC

 

	(SEAL)	My commission expires: _________________, 20___

 

(

 

    	 

    	 

    

  

EXHIBIT A 

TO THE SECOND STIPULATION OF INTEREST AND CROSS-CONVEYANCE

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