Document:

EX-10.1

 Exhibit 10.1 

Execution Version 

$600,000,000 
 MEMORIAL RESOURCE
DEVELOPMENT CORP. 
 5.875% Senior Notes due 2022 

PURCHASE AGREEMENT 
 Dated:
June 25, 2014 

 $600,000,000 

MEMORIAL RESOURCE DEVELOPMENT CORP. 

5.875% Senior Notes due 2022 

PURCHASE AGREEMENT 

June 25, 2014 
 Citigroup Global Markets Inc.

 As Representative of the several Initial Purchasers 
 388
Greenwich Street 
 New York, NY 10013 
 Ladies and Gentlemen:

 Memorial Resource Development Corp., a Delaware corporation (the “Company”) confirms its agreement with each of the
Initial Purchasers named on Exhibit A hereto (collectively, the “Initial Purchasers,” which term shall also include any person substituted for an Initial Purchaser pursuant to Section 10 hereof), for whom Citigroup Global
Markets Inc. is acting as representative (in such capacity, the “Representative”), with respect to the issue and sale by the Company and the purchase by the Initial Purchasers, acting severally and not jointly, of $600,000,000 in
aggregate principal amount of the Company’s 5.875% Senior Notes due 2022 (the “Notes”). The Notes will be issued pursuant to an Indenture, to be dated as of the Closing Date (as defined herein) (the
“Indenture”) among the Company, the Guarantors referred to below, and U.S. Bank National Association, as trustee (the “Trustee”). The Company’s obligations under the Notes, including the due and punctual
payment of interest on the Notes, will be irrevocably and unconditionally guaranteed on an unsecured senior basis (the “Guarantees” and, together with the Notes, the “Securities”) by the Guarantors. Certain terms
used in this purchase agreement (this “Agreement”) are defined in Section 15 hereof. 
 Reference herein to:
(i) “Guarantors” means each of the entities set forth on Exhibit B; (ii) “MRD Parties” means the Company and the Guarantors; (iii) “MRD Entities” means the MRD Parties and their
respective subsidiaries other than the Partnership and its subsidiaries; (iv) “Partnership” means Memorial Production Partners LP, a Delaware limited partnership; (v) “General Partner” means Memorial
Production Partners GP LLC, a Delaware limited liability company and the sole general partner of the Partnership; and (vi) “MRD Properties” means the properties and assets owned by the MRD Entities. 

The Securities will be offered and sold to the Initial Purchasers without registration under the 1933 Act, in reliance on the exemption
provided by Section 4(a)(2) of the 1933 Act. The MRD Parties have prepared a preliminary offering memorandum, dated June 23, 2014 (the “Preliminary Offering Memorandum”), and a pricing term sheet substantially in the form
attached hereto as Exhibit D (the “Pricing Term Sheet”) setting forth the terms of the Securities omitted from the Preliminary Offering Memorandum. Promptly following the execution of this Agreement, the MRD Parties will
prepare an offering memorandum, dated June 25, 2014 (the 

  
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“Offering Memorandum”), setting forth information regarding the MRD Entities and the Securities. The Preliminary Offering Memorandum, as supplemented and amended as of the
Applicable Time, together with the Pricing Term Sheet and any of the documents listed on Exhibit E hereto are collectively referred to as the “General Disclosure Package.” The MRD Parties hereby confirm that they have
authorized the use of the General Disclosure Package and the Offering Memorandum in connection with the offering and resale of the Securities by the Initial Purchasers. 

You have advised the Company that you will resell, in the case of (i) below, and offer and resell, in the case of (ii) below
(collectively, the “Exempt Resales”), the Securities purchased by you hereunder on the terms set forth in each of the General Disclosure Package and the Offering Memorandum, as amended or supplemented, solely to (i) persons
whom you reasonably believe to be “qualified institutional buyers” as defined in Rule 144A under the 1933 Act (“QIBs”), and (ii) in compliance with Regulation S under the 1933 Act (“Regulation S”).
Those persons specified in clauses (i) and (ii) of this paragraph are referred to herein as “Eligible Purchasers.” 

Holders (including subsequent transferees) of the Securities will have the benefit of the registration rights set forth in the registration
rights agreement substantially having the terms described in the General Disclosure Package among the MRD Parties and the Initial Purchasers to be dated the Closing Date (as defined herein). Pursuant to the Registration Rights Agreement, the MRD
Parties will agree to file with the Commission under the circumstances set forth therein, a registration statement under the 1933 Act relating to the Company’s 5.875% Senior Notes due 2022 (the “Exchange Notes”) and the
Guarantors’ Exchange Guarantees (the “Exchange Guarantees”) to be offered in exchange for the Notes and the Guarantees (the “Exchange Offer”). 

SECTION 1. Representations and Warranties. 

(a) Representations and Warranties by the MRD Parties. The MRD Parties, jointly and severally, represent and warrant to each Initial
Purchaser, and agree with each Initial Purchaser, as follows: 
 (1) Rule 144A Information. Each of the General
Disclosure Package and the Offering Memorandum, each as of its respective date, contains all the information required by Rule 144A(d)(4) under the 1933 Act, if any. 

(2) No Stop Orders. The General Disclosure Package and the Offering Memorandum have been prepared by the MRD Parties for
use by the Initial Purchasers in connection with the Exempt Resales. No order or decree preventing the use of the General Disclosure Package or the Offering Memorandum, or any order asserting that the transactions contemplated by this Agreement are
subject to the registration requirements of the 1933 Act has been issued, and no proceeding for that purpose has commenced or is pending or, to the knowledge of the MRD Parties, is contemplated. 

  
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 (3) No Material Misstatement or Omission. (i) The Preliminary
Offering Memorandum, as of the date thereof, did not include any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading, (ii) the General Disclosure Package, as of the Applicable Time, did not include any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading, (iii) the Offering Memorandum, as of the date thereof, did not and, at the Closing Date, will not include any untrue statement of a material fact or omit to state a material fact necessary to make the
statements therein, in the light of the circumstances under which they were made, not misleading and (iv) each Issuer Free Writing Document (as defined below) set forth on Exhibit E or used pursuant to Section 3(p) (including any
electronic road show) and each Permitted General Solicitation (as defined below), when taken together with the General Disclosure Package, did not, and, at the Closing Date, will not contain any untrue statement of a material fact or omit to state a
material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading. 

The representations and warranties in the preceding paragraph do not apply to statements in or omissions from the Offering
Memorandum, the General Disclosure Package, any Issuer Free Writing Document or any amendment or supplement to any of the foregoing made in reliance upon and in conformity with written information furnished to the Company by any Initial Purchaser
through the Representative expressly for use therein, it being understood and agreed that the only such information furnished by the Initial Purchasers as aforesaid consists of the information described as such in Section 6(b) hereof. 

(4) No Other Securities of Same Class. When the Securities are issued and delivered pursuant to this Agreement, such
Securities will not be of the same class (within the meaning of Rule 144A under the 1933 Act) as securities of the Company or the Guarantors that are listed on a national securities exchange registered under Section 6 of the 1934 Act or that
are quoted in a United States automated inter-dealer quotation system. 
 (5) No Registration. No registration under
the 1933 Act of the Securities is required for the sale of the Securities and to you as contemplated hereby or for the initial resale of Securities by you to the Eligible Purchasers, assuming the accuracy of the Initial Purchasers’
representations in this Agreement. 
 (6) No General Solicitation. No form of general solicitation or general
advertising within the meaning of Rule 502 under the 1933 Act (including, but not limited to, advertisements, articles, notices or other communications published in any newspaper, magazine or similar medium or broadcast over television or radio, or
any seminar or meeting whose attendees have been invited by any general solicitation or general advertising) (each, a “General Solicitation”) was used by the Company or any of its affiliates or any of their representatives (other
than the Initial Purchasers, as to whom the MRD Parties make no representation) in connection with the offer and sale of the Securities, other than a General Solicitation with the prior consent of the Representative and set forth on Exhibit F
(each, a “Permitted General Solicitation”). 

  
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 (7) Regulation S Compliance. No directed selling efforts within the
meaning of Rule 902 under the 1933 Act were or will be used by the Company or any affiliate or any of its representatives (other than the Initial Purchasers, as to whom the MRD Parties make no representation) with respect to Securities sold in
reliance on Regulation S, and the Company, any affiliate of the Company and any person acting on its behalf (other than the Initial Purchasers, as to whom the MRD Parties make no representation) have complied with and will implement the
“offering restrictions” required by Rule 902 under the 1933 Act. 
 (8) No Integration. None of the MRD
Parties nor any other person acting on behalf of the MRD Parties has sold or issued any securities that would be integrated with the offering of the Securities contemplated by this Agreement in a manner that would require registration of the
Securities under the 1933 Act. 
 (9) Good Standing of the MRD Entities. Each of the MRD Entities is validly existing
as a limited partnership, limited liability company or corporation, as applicable, in good standing under the laws of its jurisdiction of organization with full power and authority to enter into and perform its respective obligations under this
Agreement and the other Transaction Documents and consummate the transactions contemplated hereby and thereby. Each of the MRD Entities is duly qualified to do business as a foreign limited partnership, limited liability company or corporation, as
applicable, and is in good standing under the laws of each jurisdiction which requires, or at the Closing Date, will require, such qualification, except where the failure to be so qualified would not have a material adverse effect on the condition
(financial or otherwise), prospects, earnings, business or properties, taken as a whole, whether or not arising from transactions in the ordinary course of business, on the MRD Entities, taken as a whole (a “Material Adverse
Effect”). 
 (10) Ownership of the General Partner. The Company owns, and on the Closing Date, will own, all
of the issued and outstanding membership interests of the General Partner; such membership interests are duly authorized and validly issued in accordance with the limited liability company agreement of the General Partner (the “GP LLC
Agreement”), and are fully paid (to the extent required by the GP LLC Agreement) and nonassessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware Limited Liability Company Act (the
“Delaware LLC Act”)); and the Company owns such membership interests free and clear of all liens, encumbrances, security interests, charges or other claims (collectively, “Liens”), except for restrictions on
transferability contained in the GP LLC Agreement or as described in the General Disclosure Package and the Offering Memorandum; and on the Closing Date, no other interest in the General Partner will be outstanding. 

(11) General Partner of the Partnership. The General Partner is, and on the Closing Date, will be, the sole general
partner of the Partnership with an approximately 0.1% general partner interest in the Partnership; such general partner interest has been, and on the Closing Date, will be, duly authorized and validly issued in accordance with the First Amended and
Restated Agreement of Limited Partnership of the Partnership, as in effect on the date hereof (the “Partnership Agreement”); and the General Partner owns, 

  
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and will own on the Closing Date, such general partner interest free and clear of all Liens, except for restrictions on transferability contained in the Partnership Agreement or as described in
the General Disclosure Package and the Offering Memorandum. 
 (12) Ownership of the Partnership. The General Partner
owns, and on the Closing Date will own, 50% of the Incentive Distribution Rights (as such term is defined in the Partnership Agreement, the “IDRs”) in the Partnership free and clear of all Liens, except for restrictions on
transferability contained in the Partnership Agreement or as described in the General Disclosure Package and the Offering Memorandum; the IDRs and the limited partner interests represented thereby have been duly authorized and validly issued in
accordance with the Partnership Agreement, and are fully paid (to the extent required under the Partnership Agreement) and nonassessable (except as such nonassessability may be affected by Sections 17-607 and 17-804 of the Delaware Limited
Partnership Act). 
 (13) The Notes. The Notes have been duly authorized and, at the Closing Date, will have been duly
executed by the Company and, when authenticated in the manner provided for in the Indenture and delivered against payment of the purchase price therefor as provided in this Agreement, will constitute valid and binding obligations of the Company,
enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by bankruptcy, insolvency, fraudulent transfer, reorganization, moratorium and similar laws relating to or affecting creditors’ rights
generally and by general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law) (“Creditors’ Rights”), and will be in the form contemplated by, and entitled to the
benefits of, the Indenture. 
 (14) Exchange Notes. The Exchange Notes have been duly authorized and, when issued and
authenticated in accordance with the terms of the Indenture and delivered in accordance with the Exchange Offer as provided in the Registration Rights Agreement, will be validly issued and will constitute valid and binding obligations of the
Company, enforceable against the Company in accordance with their terms, except as enforcement thereof may be limited by Creditors’ Rights, and will be in the form contemplated by, and entitled to the benefits of, the Indenture. 

(15) The Guarantees. The Guarantees have been duly authorized by the Guarantors. When the Securities have been validly
issued, executed and authenticated in accordance with the terms of the Indenture and delivered against payment therefor as provided in this Agreement, the Guarantees will constitute valid and binding obligations of the Guarantors, enforceable
against each Guarantor in accordance with their terms, except as enforcement thereof may be limited by Creditors’ Rights, and will be in the form contemplated by, and entitled to the benefits of, the Indenture. 

(16) Exchange Guarantees. The Exchange Guarantees have been duly authorized, and when the Exchange Notes have been
validly issued, executed and authenticated in accordance with the terms of the Indenture and delivered in accordance with the Exchange Offer as provided in the Registration Rights Agreement, will be validly issued and will constitute valid and
binding obligations of the Guarantors, 

  
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enforceable against each Guarantor in accordance with their terms, except as enforcement thereof may be limited by Creditors’ Rights, and will be in the form contemplated by, and entitled to
the benefits of, the Indenture. 
 (17) Capitalization. All the outstanding shares of capital stock of the Company
have been duly authorized and validly issued and are fully paid and nonassessable, conform to the description thereof contained in the General Disclosure Package and the Offering Memorandum in all material respects and were issued in compliance with
federal and state securities laws and not in violation of any preemptive right, resale right, right of first refusal or similar right. 

(18) Subsidiaries. Attached as Exhibit C is a true and complete list of each entity in which the Company has a direct or
indirect majority equity or voting interest (each, a “Subsidiary” and, together, the “Subsidiaries”) and its jurisdictions of organization. All of the issued and outstanding equity interests of each MRD Entity have
been duly and validly authorized and issued, are fully paid and nonassessable (except as such nonassessability may be affected by Sections 18-607 and 18-804 of the Delaware LLC Act, Sections 101.206 and 101.613 of the Texas Business Organization
Code or Sections 17-607 and 17-804 of the Delaware Limited Partnership Act), were not issued in violation of any preemptive or similar right and, except as set forth in the General Disclosure Package and the Offering Memorandum, are owned,
directly or indirectly through Subsidiaries, by the Company (except with respect to limited partner interests in the Partnership owned by public or affiliated unitholders) free and clear of all Liens, other than transfer restrictions imposed by the
1933 Act, the securities or “blue sky” laws of certain jurisdictions or pursuant to the Credit Agreement dated as of June 18, 2014, among the Company, as borrower, Bank of America, N.A., as administrative agent and the lenders and
other parties thereto (the “Credit Agreement”). Except as set forth in the General Disclosure Package and the Offering Memorandum, there are no outstanding options, warrants or other rights to acquire or purchase, or instruments
convertible into or exchangeable for, any equity interests of the MRD Entities. Except as set forth in the General Disclosure Package and the Offering Memorandum, no holder of any securities of the Company or any of the Subsidiaries is entitled to
have such securities registered under any registration statement. 
 (19) Full Power. Each of the MRD Parties has all
requisite power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and perform its respective obligations hereunder and thereunder. The Company has all requisite corporate power and
authority to issue, sell and deliver the Securities, in accordance with and upon the terms and conditions set forth in this Agreement, the Indenture, the General Disclosure Package and the Offering Memorandum. Each of the Guarantors has all
requisite limited partnership, limited liability company or corporate power and authority, as applicable, to issue the Guarantees. 

(20) Authorization of this Agreement. This Agreement has been duly authorized, executed and delivered by each of the MRD
Parties. 

  
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 (21) The Indenture. The Indenture has been duly authorized by each of the
MRD Parties and, on the Closing Date, will have been duly executed and delivered by each of the MRD Parties and, assuming due authorization and execution by the Trustee, will constitute a valid and binding agreement of each of the MRD Parties,
enforceable against each of the MRD Parties in accordance with its terms, except as enforcement thereof may be limited by Creditors’ Rights. No qualification of the Indenture under the 1939 Act is required in connection with the offer and sale
of the Securities contemplated hereby or in connection with the Exempt Resales. The Indenture conforms in all material respects to the requirements of the 1939 Act and the rules and regulations thereunder applicable to an indenture that is qualified
thereunder. 
 (22) The Registration Rights Agreement. The Registration Rights Agreement has been duly authorized by
each of the MRD Parties. When the Registration Rights Agreement has been executed and delivered in accordance with the terms hereof and thereof by the MRD Parties, and assuming due authorization and execution by the Representative, it will
constitute a valid and binding agreement of each of the MRD Parties, enforceable against each of the MRD Parties in accordance with its terms, except as enforcement thereof may be limited by Creditors’ Rights. 

(23) No Conflicts. None of (i) the offering, issuance or sale by the MRD Parties of the Securities, (ii) the
execution, delivery and performance of this Agreement and the other Transaction Documents by the MRD Parties party thereto and the consummation of the transactions contemplated hereby and thereby, or (iii) the application of the proceeds as
described under the caption “Use of Proceeds” in the General Disclosure Package and the Offering Memorandum, (A) will conflict with, or will constitute a violation of, the partnership agreement, limited liability company agreement,
bylaws, certificate of limited partnership, certificate of formation, certificate of incorporation, certificate of conversion or other constituent document (collectively, the “Organizational Documents”) of any of the MRD Entities,
(B) will conflict with, or constitutes or will constitute a breach or violation of, or a default under (or an event that, with notice or lapse of time or both would constitute such a default), any indenture, mortgage, deed of trust, loan
agreement, lease or other agreement or instrument to which any MRD Entity is a party or bound or to which its property is subject, (C) will violate any statute, law, regulation, judgment, decree or injunction of any court or governmental agency
or body having jurisdiction over any MRD Entity or any of their properties in a proceeding to which any of them or their property is a party or (D) will result in the creation or imposition of any Lien upon any property or assets of any of the
MRD Entities, except for such conflicts, breaches, violations, defaults or Liens, in the case of clauses (B), (C) and (D), that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 

(24) [Intentionally Omitted.] 

(25) No Consents. No permit, consent, approval, authorization, order, registration, filing or qualification (each, for
purposes of this Section, a “consent”) of or with any court, governmental agency or body having jurisdiction over any of the MRD Entities or any of their properties or assets is required in connection with (i) the offering,

  
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issuance or sale by the MRD Parties of the Securities as described in the General Disclosure Package and the Offering Memorandum, (ii) the execution, delivery and performance of this
Agreement and the other Transaction Documents by the MRD Parties party thereto and the consummation of the transactions contemplated hereby and thereby, (iii) the application of the proceeds as described under the caption “Use of
Proceeds” in the General Disclosure Package and the Offering Memorandum other than (A) the filing of a registration statement by the Company with the Commission pursuant to the 1933 Act as required by the Registration Rights Agreement,
(B) any necessary qualification under the securities or blue sky laws of the various jurisdictions in which the Securities are being offered by the Initial Purchasers, and (C) consents that, if not obtained, would not, individually or in
the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (26) No Violations, Breaches or Defaults.
None of the MRD Parties is (i) in violation of any provision of its Organizational Documents, (ii) in violation of any statute, law, rule, regulation, judgment, order or decree of any court, governmental, regulatory or administrative
authority, agency or body, arbitrator or other authority having jurisdiction over any of the MRD Parties or any of its properties, as applicable, (iii) in breach, default (or an event that, with notice or lapse of time or both, would constitute
such a breach or default) or violation in the performance of any obligation, agreement or condition contained in any indenture, mortgage, deed of trust, loan agreement, lease or other agreement or instrument relating to the MRD Parties or MRD
Properties to which it is a party or by which it or any of its properties may be bound or (iv) in breach, default (or an event that, with notice or lapse of time or both, would constitute such a breach or default) or violation in the
performance of, assuming the due execution by all parties thereto, the Transaction Documents, which in the case of either (ii), (iii) or (iv) would reasonably be expected to have, if continued, a Material Adverse Effect or materially
impair the ability of the MRD Parties to execute this Agreement and the other Transaction Documents party thereto and consummate the transactions contemplated hereby and thereby. 

(27) Description of the Securities and Transaction Documents. The Notes, the Guarantees and the Indenture will conform
in all material respects to the respective statements relating thereto contained in the General Disclosure Package and the Offering Memorandum. 

(28) Absence of Labor Dispute. No labor problem or dispute with the employees of any of the MRD Entities exists or, to
the knowledge of the Company, is imminent that could have a Material Adverse Effect. 
 (29) Financial Statements. The
historical financial statements, together with the related schedules and notes, included in the General Disclosure Package and Offering Memorandum present fairly in all material respects the financial condition, results of operations and cash flows
of the Company and the predecessor to the Company, as applicable, as of the dates and for the periods indicated, comply as to form in all material respects with the applicable accounting requirements of Regulation S-X of the Act and have been
prepared in conformity with generally accepted accounting principles in the 

  
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United States applied on a consistent basis throughout the periods involved (except as otherwise noted therein). The pro forma condensed combined financial statements included in the General
Disclosure Package and Offering Memorandum include assumptions that provide a reasonable basis for presenting the significant effects directly attributable to the transactions and events described therein, the related pro forma adjustments give
appropriate effect to those assumptions, and the pro forma adjustments reflect an appropriate application of those adjustments to the historical combined financial statement amounts in the pro forma condensed combined financial statements included
in the General Disclosure Package and Offering Memorandum. The pro forma condensed combined financial statements included in the General Disclosure Package and Offering Memorandum comply as to form in all material respects with the applicable
accounting requirements of Regulation S-X of the Act. The summary historical and pro forma financial and operating information set forth in the General Disclosure Package and Offering Memorandum under the caption “Summary—Summary
Historical Consolidated and Combined Pro Forma Financial Data” and the selected historical and pro forma financial and operating information set forth under the caption “Selected Historical Financial Data” in the General Disclosure
Package and Offering Memorandum is accurately presented in all material respects and prepared on a basis consistent with the audited and unaudited historical financial statements and pro forma financial statements, as applicable, from which it has
been derived, unless expressly noted otherwise. 
 (30) Independent Accountants; Independent Petroleum Engineers. KPMG
LLP, which has expressed its opinion with respect to the financial statements (which term as used in this Agreement includes the related notes thereto) and supporting schedules included in the General Disclosure Package and Offering Memorandum is an
independent public accounting firm within the meaning of the 1933 Act and the rules of the Public Company Accounting Oversight Board. The reserve engineers who prepared the reports and audits upon which the estimates of the proved reserves of the
MRD Properties disclosed in the General Disclosure Package and the Offering Memorandum were based are independent petroleum engineers with respect to the MRD Entities and for the periods set forth in the General Disclosure Package and the Offering
Memorandum. 
 (31) Oil and Natural Gas Reserves. The oil and natural gas reserve estimates of the MRD Properties
contained in the General Disclosure Package and the Offering Memorandum are derived from reports that have been prepared, and audits that have been completed, by Netherland, Sewell & Associates, Inc. (“NSAI”), and such
estimates fairly reflect, in all material respects, the oil and natural gas reserves attributable to such properties at the dates indicated therein and are in accordance, in all material respects, with Commission guidelines applied on a consistent
basis throughout the periods involved. 
 (32) Absence of Proceedings. Except as described in the General Disclosure
Package and the Offering Memorandum, no action, suit, proceeding, inquiry or investigation by or before any court or governmental or other regulatory or administrative agency, authority or body or any arbitrator involving any of the MRD Entities or
their property is pending or, to the knowledge of the MRD Parties, threatened or contemplated 

  
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that (i) could reasonably be expected to have, individually or in the aggregate, a material adverse effect on the performance of this Agreement or the other Transaction Documents or the
consummation of any of the transactions contemplated herein or therein; or (ii) could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(33) Title to Property. Each of the MRD Entities has good and marketable title to, or has valid rights to lease or
otherwise use, all items of real property and personal property that are material to the conduct of the respective businesses of the MRD Entities, in each case free and clear of all liens, encumbrances and defects, except such liens, encumbrances
and defects as (i) are described in the General Disclosure Package and the Offering Memorandum, (ii) do not materially interfere with the use made and proposed to be made of such property by the MRD Entities and (iii) would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 
 (34) Possession of Licenses
and Permits. Each of the MRD Entities possesses such permits, licenses, approvals, consents and other authorizations (collectively, “Governmental Licenses”) issued by the appropriate federal, state, local or foreign regulatory
agencies or bodies necessary to conduct its business in the manner described in the General Disclosure Package and the Offering Memorandum, except for such Governmental Licenses the failure of which to obtain, would not result in, individually or in
the aggregate, a Material Adverse Effect; the MRD Entities are and will be in compliance with the terms and conditions of all such Governmental Licenses, except where the failure so to comply would not, individually or in the aggregate, have a
Material Adverse Effect; the Governmental Licenses are and will be valid and in full force and effect, except when the invalidity of such Governmental Licenses or the failure of such Governmental Licenses to be in full force and effect would not,
individually or in the aggregate, have a Material Adverse Effect; and, to the knowledge of the MRD Parties, none of the MRD Entities has received any notice of proceedings relating to the revocation or modification of any Governmental Licenses that,
individually or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would result in a Material Adverse Effect. 

(35) Tax Returns. Each of the MRD Entities has filed all foreign, federal, state and local tax returns that are required
to be filed or has requested extensions thereof, except in any case in which the failure so to file would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect and has paid all taxes required to be paid by
it and any other assessment, fine or penalty levied against it, to the extent that any of the foregoing is due and payable, except for any such tax, assessment, fine or penalty that is currently being contested in good faith and except for such
taxes, assessments, fines or penalties the nonpayment of which would not, individually or in the aggregate, be reasonably expected to have a Material Adverse Effect. 

(36) Insurance. The MRD Entities are insured, and on the Closing Date, will be insured, by insurers of recognized
financial responsibility against such losses and risks 

  
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and in such amounts as are reasonably adequate and customary in the businesses in which they are engaged, except for such policies of insurance the failure of which to obtain, would not result
in, individually or in the aggregate, a Material Adverse Effect; all policies of insurance and any fidelity or surety bonds insuring the MRD Entities or their respective businesses, assets, employees, officers and directors will be in full force and
effect, except when the failure of such policies of insurance and any fidelity or surety bonds to be in full force and effect would not, individually or in the aggregate, have a Material Adverse Effect; and the MRD Entities will be in compliance
with the terms of such policies and instruments in all material respects. 
 (37) No Restrictions on Distributions. No
MRD Entity is, and on the Closing Date, no MRD Entity will be, prohibited, directly or indirectly, from making any distribution with respect to its equity interests or from repaying any loans or advances to any other MRD Entity, except as described
in or contemplated by the General Disclosure Package and the Offering Memorandum or arising under the Credit Agreement. 

(38) Environmental Laws. Each of the MRD Entities (i) are, and at all times prior hereto were, in compliance with
all laws, regulations, ordinances, rules, orders, judgments, decrees, permits or other legal requirements of any governmental authority, including without limitation any international, foreign, national, state, provincial, regional, or local
authority, relating to pollution, the protection of human health or safety, the environment, or natural resources, or to use, handling, storage, manufacturing, transportation, treatment, discharge, disposal or release of hazardous or toxic
substances or wastes, pollutants or contaminants (“Environmental Laws”) applicable to such entity, which compliance includes, without limitation, obtaining, maintaining and complying with all permits and authorizations and approvals
required by Environmental Laws to conduct their respective businesses, and (ii) have not received notice or otherwise have knowledge of any actual or alleged violation of Environmental Laws, or of any actual or potential liability for or other
obligation concerning the presence, disposal or release of hazardous or toxic substances or wastes, pollutants or contaminants, except in the case of clause (i) or (ii) where such non-compliance, violation, liability, or other obligation
would not, in the aggregate, reasonably be expected to have a Material Adverse Effect. Except as described in the General Disclosure Package and the Offering Memorandum, (x) there are no proceedings that are pending, or known to be
contemplated, against any of the MRD Entities under Environmental Laws in which a governmental authority is also a party, other than such proceedings regarding which it is reasonably believed no monetary sanctions of $100,000 or more will be
imposed, (y) the MRD Entities are not aware of any issues regarding compliance with Environmental Laws, including any pending or proposed Environmental Laws, or liabilities or other obligations under Environmental Laws or concerning hazardous
or toxic substances or wastes, pollutants or contaminants, that could reasonably be expected to have a Material Adverse Effect, and (z) none of the MRD Entities anticipates material capital expenditures relating to Environmental Laws other than
those incurred in the ordinary course of business. 
 (39) Transactions with Related Persons. No relationship, direct
or indirect, which would be required to be described in a registration statement of the Company pursuant to Item 404 of Regulation S-K, exists between or among any MRD Entity, on 

  
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the one hand, and the directors, officers, stockholders, affiliates, customers or suppliers of any MRD Entity, on the other hand, that has not been described in the General Disclosure Package and
the Offering Memorandum. 
 (40) ERISA Compliance. On the Closing Date, except as would not, individually or in the
aggregate, reasonably be expected to result in a Material Adverse Effect, (i) the MRD Entities will be in compliance in all material respects with all presently applicable provisions of the Employee Retirement Income Security Act of 1974, as
amended, including the regulations and published governmental interpretations thereunder (“ERISA”); (ii) no “reportable event” (as defined in Section 4043(c) ERISA) has occurred with respect to any “pension
plan” (as defined in Section 3(2) of ERISA) for which any MRD Entities would have any liability, excluding any reportable event for which a waiver could apply; (iii) no MRD Entity has incurred, nor does any such entity reasonably
expect to incur, liability under (a) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan” or (b) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the
regulations and published governmental interpretations thereunder (the “Code”) with respect to any “pension plan”; (iv) each “pension plan” for which any MRD Entity would have any liability that is intended
to be qualified under Section 401(a) of the Code is the subject of a favorable determination or opinion letter from the Internal Revenue Service to the effect that it is so qualified and, to the knowledge of the MRD Parties, nothing has
occurred, whether by action or by failure to act, which could reasonably be expected to cause the loss of such qualification; and (v) no MRD Entity has incurred any material unpaid liability to the Pension Benefit Guaranty Corporation (other
than for payment of premiums in the ordinary course of business) for which any MRD Entity could be liable. 
 (41) No
Material Adverse Change in Business. Since the date of the latest audited financial statements included in the General Disclosure Package and the Offering Memorandum, the MRD Properties have not sustained any loss or interference from fire,
explosion, flood or other calamity, whether or not covered by insurance, or from any labor dispute or court or governmental action, investigation, order or decree, otherwise than as set forth or contemplated in the General Disclosure Package and the
Offering Memorandum and other than as would not reasonably be expected to have a Material Adverse Effect or prevent or materially interfere with or delay the consummation of this Agreement and the transactions contemplated hereby. Subsequent to the
respective dates as of which information is given in the General Disclosure Package and the Offering Memorandum, in each case excluding any amendments or supplements to the foregoing made after the execution of this Agreement, other than as
described in the General Disclosure Package and the Offering Memorandum there has not been (i) any Material Adverse Effect or (ii) any dividend or distribution of any kind declared, paid or made by the Company. 

(42) Accuracy of Descriptions. The information included in the General Disclosure Package and the Offering Memorandum
under the captions “Business—Regulation of the Oil and Natural Gas Industry,” “Business—Regulation of Production of Oil and Natural Gas,” “Business—Regulation of Environmental and Occupational Health and
Safety Matters,” “Restructuring Transactions,” “Certain Relationships and Related 

  
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Party Transactions,” “Description of Other Indebtedness,” “Transfer Restrictions,” “Certain Material United States Federal Income Tax Considerations” and
“Certain ERISA Considerations,” in each case, to the extent that it constitutes matters of law, summaries of legal matters, summaries of provisions of the Organizational Documents of the MRD Entities or any other instruments or agreements,
summaries of legal proceedings, or legal conclusions, is correct in all material respects. The statements made in the General Disclosure Package and the Offering Memorandum, insofar as they purport to constitute summaries of the terms of the
franchises, contracts and other documents described constitute accurate summaries of the terms of such franchises, contracts and documents in all material respects. 

(43) Investment Company Act. None of the MRD Entities is now, and immediately following the issuance and sale of the
Securities by the MRD Parties hereunder and application of the net proceeds from such sale as described in the General Disclosure Package and the Offering Memorandum under the caption “Use of Proceeds” will be, an “investment
company” or a company “controlled by” an “investment company” within the meaning of the 1940 Act. 

(44) Internal Accounting Controls. The MRD Entities (considered as one entity) maintain a system of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial
statements in conformity with GAAP and to maintain asset accountability; (iii) access to assets is permitted only in accordance with management’s general or specific authorization; and (iv) the recorded accountability for assets is
compared with the existing assets at reasonable intervals and appropriate action is taken with respect to any differences. Except as disclosed in the General Disclosure Package and the Offering Memorandum, none of the MRD Parties are aware of any
material weaknesses in their internal control over financial reporting. The Company has established and maintains “disclosure controls and procedures” (to the extent required by and as such term is defined in Rule 13a-15(e) under the 1934
Act); and (i) such disclosure controls and procedures are designed to ensure that the information required to be disclosed by the Company in the reports it files or will file or submit under the 1934 Act, as applicable, is accumulated and
communicated to management of the Company, including their respective principal executive officers and principal financial officers, as appropriate, and (ii) such disclosure controls and procedures are effective in all material respects to
perform the functions for which they were established to the extent required by Rule 13a-15 of the 1934 Act. 
 (45)
Absence of Manipulation. None of the MRD Entities has taken, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in, under the 1934 Act or otherwise, stabilization or
manipulation of the price of any security of the MRD Entities to facilitate the sale or resale of the Securities. 
 (46)
FCPA. No MRD Entity nor, to the knowledge of any of the MRD Parties, any director, officer, agent or employee of any MRD Entity, has taken any action, 

  
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directly or indirectly, that would result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder (collectively, the
“FCPA”), including, without limitation, making use of the mails or any means or instrumentality of interstate commerce corruptly in furtherance of an offer, payment, promise to pay or authorization of the payment of any money, or
other property, gift, promise to give, or authorization of the giving of anything of value to any “foreign official” (as such term is defined in the FCPA) or any foreign political party or official thereof or any candidate for foreign
political office, in contravention of the FCPA, and the MRD Entities and, to the knowledge of any of the MRD Parties, their controlled affiliates, have conducted their businesses in compliance with the FCPA and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to ensure, continued compliance therewith. 

(47) Money Laundering Laws. The operations of each of the MRD Entities are and have been conducted at all times in
compliance with applicable financial recordkeeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all applicable jurisdictions, the rules and regulations
thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”), and no action, suit or proceeding by or before any
court or governmental agency, authority or body or any arbitrator involving any of the MRD Entities with respect to the Money Laundering Laws is pending or, to the knowledge of any of the MRD Parties, threatened. 

(48) OFAC. No MRD Entity nor, to the knowledge of any of the MRD Parties, any director, officer, agent or employee of
the MRD Entities, has received notice that it is currently subject to any sanctions administered by the Office of Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and the MRD Entities will not directly or indirectly
use the proceeds of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person or entity, for the purpose of financing the activities of any person currently subject to any
U.S. sanctions administered by OFAC. 
 (49) Relationships with Lenders. Except as described in the General Disclosure
Package and the Offering Memorandum, no MRD Entity has any material lending or other relationship with any bank or lending affiliate of any of the Initial Purchasers. 

(50) Statistical and Market-Related Data. All statistical and market-related data included in the General Disclosure
Package and the Offering Memorandum are based on or derived from sources that the Company believes to be reliable and accurate in all material respects. 

(51) Solvency. All indebtedness represented by the Securities is being incurred for proper purposes and in good faith.
On the Closing Date, after giving pro forma effect to the purchase of the Securities by the Initial Purchasers pursuant to this Agreement and the use of proceeds therefrom described under the caption “Use of Proceeds” in the

  
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General Disclosure Package and the Offering Memorandum, each of the MRD Parties (i) will be Solvent (as hereinafter defined), (ii) will have sufficient capital for carrying on its
business and (iii) will be able to pay its debts as they mature. As used in this paragraph, the term “Solvent” means, with respect to a particular date, that on such date (i) the present fair market value (or present fair
saleable value) of the assets of each of the MRD Parties is not less than the total amount required to pay the liabilities of each of the MRD Parties on its total existing debts and liabilities (including contingent liabilities) as they become
absolute and matured; (ii) each of the MRD Parties is able to pay its debts and other liabilities, contingent obligations and commitments as they mature and become due in the normal course of business; (iii) assuming consummation of the
issuance of the Securities as contemplated by this Agreement and the General Disclosure Package and the Offering Memorandum, none of the MRD Parties is incurring debts or liabilities beyond its ability to pay as such debts and liabilities mature;
and (iv) none of the MRD Parties is engaged in any business or transaction, and does not propose to engage in any business or transaction, for which its property would constitute unreasonably small capital after giving due consideration to the
prevailing practice in the industry in which the such MRD Party is engaged. 
 (52) Margin Requirements. None of the
transactions contemplated by this Agreement (including, without limitation, the use of the proceeds from the sale of the Securities) will violate or result in a violation of Section 7 of the 1934 Act, or any regulation promulgated thereunder,
including, without limitation, Regulations T, U and X of the Board of Governors of the Federal Reserve System. 
 (53)
Brokers. There is not a broker, finder or other party that is entitled to receive from the Company or any Subsidiary any brokerage or finder’s fee or other fee or commission as a result of any of the transactions contemplated by this
Agreement, except for discounts and commissions payable to the Initial Purchasers in connection with the sale of the Securities pursuant to this Agreement. 

(b) Certificates. Any certificate signed by any officer of the MRD Parties and delivered to the Representative or to counsel for the
Initial Purchasers shall be deemed a representation and warranty by such MRD Party to each Initial Purchaser as to the matters covered thereby. 

SECTION 2. Sale and Delivery to Initial Purchasers; Closing; Agreements to Sell, Purchase and Resell 

(a) The Securities. On the basis of the representations and warranties herein contained and subject to the terms and conditions herein
set forth, the Company and each of the Guarantors agree to sell to each Initial Purchaser, severally and not jointly, and each Initial Purchaser, severally and not jointly, agrees to purchase from the Company and each of the Guarantors, the
aggregate principal amount of Securities set forth opposite such Initial Purchaser’s name in Exhibit A hereto plus any additional principal amount of Securities which such Initial Purchaser may become obligated to purchase pursuant to the
provisions of Section 10 hereof, in each case at a price equal to 98.000% of the principal amount thereof. 

  
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 (b) Payment. Payment of the purchase price for, and delivery of, the Securities shall be
made at the offices of Akin Gump Strauss Hauer & Feld LLP, 1111 Louisiana Street, Houston, Texas 77002, or at such other place as shall be agreed upon by the Representative and the Company, at 9:00 A.M. (New York City time) on July 10,
2014 (unless postponed in accordance with the provisions of Section 10), or such other time not later than five business days after such date as shall be agreed upon by the Representative and the Company (such time and date of payment and
delivery being herein called the “Closing Date”). 
 (c) Delivery of Securities. The Company shall make one or more
global certificates (collectively, the “Global Securities”) representing the Securities available for inspection by the Representative not later than 1:00 p.m., New York City time, on the business day prior to the Closing Date and,
on or prior to the Closing Date, the Company shall deliver the Global Securities to DTC or to the Trustee, acting as custodian for DTC, as applicable. Delivery of the Securities to the Initial Purchasers on the Closing Date shall be made through the
facilities of DTC unless the Representative shall otherwise instruct. 
 (d) Representations of the Initial Purchasers. Each of the
Initial Purchasers, severally and not jointly, hereby represents and warrants to the MRD Parties that it intends to offer the Securities for sale upon the terms and conditions set forth in this Agreement and in the General Disclosure Package. Each
of the Initial Purchasers, severally and not jointly, hereby represents and warrants to, and agrees with, the MRD Parties, on the basis of the representations, warranties and agreements of the MRD Parties, that such Initial Purchaser: (i) is a
QIB; (ii) in connection with the Exempt Resales, will sell the Securities only to, the Eligible Purchasers, and in the case of offers and sales outside the United States, upon the terms and conditions set forth in Annex I hereto, which Annex I
is hereby expressly made a part hereof; and (iii) will not sell the Securities, nor has it sold the Securities by any form of General Solicitation other than a General Solicitation that has been consented to by the Company in writing. The
Initial Purchasers have advised the Company that they will offer the Securities to Eligible Purchasers at a price initially equal to 100.000% of the principal amount thereof, plus accrued interest, if any, from July 10, 2014. Such price may be
changed by the Initial Purchasers at any time without notice. Each of the Initial Purchasers understands that the MRD Parties and, for purposes of the opinions to be delivered to the Initial Purchasers pursuant to this Agreement, counsel to the MRD
Parties and counsel to the Initial Purchasers, will rely upon the accuracy and truth of the foregoing representations, warranties and agreements, and the Initial Purchasers hereby consent to such reliance. 

SECTION 3. Covenants of the MRD Parties. Each of the MRD Parties, jointly and severally, covenants with each Initial Purchaser as
follows: 
 (a) Securities Law Compliance. The Company will (i) advise each Initial Purchaser promptly after obtaining knowledge
(and, if requested by any Initial Purchaser, confirm such advice in writing) of (A) the issuance by any U.S. or non-U.S. federal or state securities commission of any stop order suspending the qualification or exemption from qualification of
any of the Securities for offer or sale in any jurisdiction, or the initiation of any proceeding for such purpose by any U.S. or non-U.S. federal or state securities commission or other regulatory authority, or (B) the occurrence of any event
that makes any statement of a material fact made in the General Disclosure Package, any Issuer Free Writing Document, Permitted General 

  
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Solicitation or the Offering Memorandum, untrue or that requires the making of any additions to or changes in the General Disclosure Package, any Issuer Free Writing Document, Permitted General
Solicitation or the Offering Memorandum, to make the statements therein, in the light of the circumstances under which they were made, not misleading, (ii) use its reasonable best efforts to prevent the issuance of any stop order or order
suspending the qualification or exemption from qualification of any of the Securities under any securities or “Blue Sky” laws of U.S. state or non-U.S. jurisdictions and (iii) if, at any time, any U.S. or non-U.S. federal or state
securities commission or other regulatory authority shall issue an order suspending the qualification or exemption from qualification of any of the Securities under any such laws, use its reasonable best efforts to obtain the withdrawal or lifting
of such order at the earliest possible time. 
 (b) Amendments. The Company will give the Representative notice of their intention to
prepare any amendment, supplement or revision to the Preliminary Offering Memorandum, the Offering Memorandum or any Issuer Free Writing Document, and the Company will furnish the Representative with copies of any such documents within a reasonable
amount of time prior to such proposed use, and will not use any such document to which the Representative or counsel for the Initial Purchasers shall object. 

(c) Delivery of Disclosure Documents to the Representative. The Company will deliver to the Representative and counsel for the Initial
Purchasers, within one day of the date hereof and without charge, such number of copies of the Preliminary Offering Memorandum, the Pricing Term Sheet and the Offering Memorandum and any amendment or supplement to any of the foregoing as they
reasonably request. 
 (d) Continued Compliance with Securities Laws. If at any time prior to the completion of the distribution of
the Securities by the Initial Purchasers to Eligible Purchasers, any event shall occur or condition shall exist as a result of which it is necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in
their judgment, it is necessary) to amend or supplement the General Disclosure Package or the Offering Memorandum so that the General Disclosure Package or the Offering Memorandum, as the case may be, will not include any untrue statement of a
material fact or omit to state a material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made or then prevailing, not misleading or if it is necessary (or, if the Representative or
counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or supplement the General Disclosure Package or the Offering Memorandum in order to comply with applicable law, the Company will promptly
notify the Representative of such event or condition and of its intention to prepare such amendment or supplement (or, if the Representative or counsel for the Initial Purchasers shall have notified the Company as aforesaid, the Company will
promptly notify the Representative of its intention to prepare such amendment or supplement) and will promptly prepare, subject to Section 3(b) hereof, such amendment or supplement as may be necessary to correct such untrue statement or
omission or to comply with such requirements, and the Company will furnish to the Initial Purchasers such number of copies of such amendment or supplement as the Initial Purchasers may reasonably request. If at any time an event shall occur or
condition shall exist as a result of which it is necessary (or if the Representative or counsel for the Initial Purchasers shall notify the Company that, in its judgment, it is necessary) to amend or supplement any

  
 17 

 
Issuer Free Writing Document so that it will not include an untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in the light of
the circumstances under which they were made or then prevailing, not misleading, or if it is necessary (or, if the Representative or counsel for the Initial Purchasers shall notify the Company that, in their judgment, it is necessary) to amend or
supplement such Issuer Free Writing Document in order to comply with applicable law, the Company will promptly notify the Representative of such event or condition and of its intention to prepare such amendment or supplement (or, if the
Representative or counsel for the Initial Purchasers shall have notified the Company as aforesaid, the Company will promptly notify the Representative of its intention to prepare such amendment or supplement) and will promptly prepare and, subject
to Section 3(b) hereof, distribute such amendment or supplement as may be necessary to eliminate or correct such conflict, untrue statement or omission or to comply with such requirements, and the Company will furnish to the Initial Purchasers
such number of copies of such amendment or supplement as the Initial Purchasers may reasonably request. 
 (e) Use of Offering
Materials. Each of the MRD Parties consents to the use of the General Disclosure Package and the Offering Memorandum in accordance with the securities or “Blue Sky” laws of the jurisdictions in which the Securities are offered by the
Initial Purchasers and by all dealers to whom Securities may be sold, in connection with the offering and sale of the Securities. 
 (f)
“Blue Sky” and Other Qualifications. The Company will cooperate with the Initial Purchasers to qualify the Securities for offering and sale, or to obtain an exemption for the Securities to be offered and sold, under the applicable
securities laws of such states and other jurisdictions (domestic or foreign) as the Representative may designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Securities (but in no
event for a period of not less than one year from the date of this Agreement); provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in
securities in any jurisdiction in which it is not so qualified or to subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Securities have been so
qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the
Securities (but in no event for a period of not less than one year from the date of this Agreement). 
 (g) Use of Proceeds. The
Company will use the net proceeds received by it from the sale of the Securities in the manner specified in the General Disclosure Package and the Offering Memorandum under “Use of Proceeds.” 

(h) Restriction on Sale of Securities. From and including the date of this Agreement through and including the 60th day after the date
of this Agreement, the MRD Parties will not, without the prior written consent of the Representative, directly or indirectly issue, offer, pledge, sell, contract to sell, sell any option or contract to purchase, purchase any option or contract to
sell, grant any option or right to sell or otherwise transfer or dispose of any debt securities of or guaranteed by the Company or any Guarantor (other than the Securities issued under this Agreement) or any securities convertible into or
exercisable or exchangeable for any debt securities of or guaranteed by the Company. 

  
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 (i) Rule 144A Information. So long as any of the Securities are outstanding, the MRD
Parties will furnish at their expense to the Initial Purchasers, and, upon request, to the holders of the Securities and prospective purchasers of the Securities the information required by Rule 144A(d)(4) under the 1933 Act (if any). 

(j) Pricing Term Sheet. The Company will prepare the Pricing Term Sheet reflecting the final terms of the Securities, in substantially
the form attached hereto as Exhibit D and otherwise in form and substance satisfactory to the Representative; provided, that the Company will furnish the Representative with copies of any such Pricing Term Sheet and will not use any such
document to which the Representative or counsel to the Initial Purchasers shall object. 
 (k) Preparation of the Offering
Memorandum. Promptly following the execution of this Agreement, the Company will, subject to Section 3(b) hereof, prepare the Offering Memorandum, which shall contain the public offering price and terms of the Securities, the plan of
distribution thereof and such other information as the Representative and the Company may deem appropriate. 
 (l) DTC. The Company
will use its best efforts to permit the Securities to be eligible for clearance and settlement through DTC. 
 (m) No Stabilization.
The Company, the Guarantors and their respective affiliates will not take, directly or indirectly, any action designed to or that has constituted or that reasonably could be expected to cause or result in the stabilization or manipulation of the
price of any security of the Company or the Guarantors in connection with the offering of the Securities. 
 (n) No Affiliate
Resales. During the period of one year after the Closing Date, the Company will not, and will not permit any of its affiliates (as defined in Rule 144 under the 1933 Act) to, resell any of the Securities that constitute “restricted
securities” under Rule 144 under the 1933 Act that have been acquired by any of them, except for Securities purchased by the Company or any of its affiliates and resold in a transaction registered under the 1933 Act or in accordance with Rule
144 under the 1933 Act. 
 (o) No Integration. The Company will not, and will ensure that no affiliate of the Company will, sell,
offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the 1933 Act) that would be integrated with the sale of the Securities in a manner that would require the registration under the
1933 Act of the sale to the Initial Purchasers or to the Eligible Purchasers of the Securities. 
 (p) Additional Written
Communications. Before making, preparing, using, authorizing, approving or referring to any Issuer Free Writing Document, the MRD Parties will furnish to the Representative and counsel for the Initial Purchasers a copy of such written
communication for review and will not make, prepare, use, authorize, approve or refer to any such written communication to which the Representative reasonably objects. 

  
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 (q) Transaction Documents. The MRD Parties will do and perform all things required or
necessary to be done and performed under the Transaction Documents by them prior to the Closing Date, and to satisfy all conditions precedent to the Initial Purchasers’ obligations hereunder to purchase the Securities. 

(r) No General Solicitation or Directed Selling Efforts. The Company agrees that it will not, and will not permit any of the other MRD
Entities, affiliates or any other person acting on its or its behalf (other than the Initial Purchasers, as to which no covenant is given) to (i) solicit offers for, or offer or sell, the Securities by means of any General Solicitation (except
as permitted in the next succeeding sentence) or (ii) engage in any directed selling efforts (with respect to the Securities within the meaning of Regulation S), and the Company will and will cause all such persons to comply with the offering
restrictions requirement of Regulation S with respect to the Securities. Before making, preparing, using, authorizing or distributing any General Solicitation other than a Permitted General Solicitation, the Company will furnish to the
Representative a copy of such communication for review and will not make, prepare, use, authorize, approve or distribute any such communication to which the Representative reasonably objects. 

SECTION 4. Payment of Expenses. 

(a) Expenses. The MRD Parties, jointly and severally, will pay all expenses incident to the performance of their respective obligations
under this Agreement, including (i) the preparation and printing of the General Disclosure Package and the Offering Memorandum and each amendment thereto (in each case including exhibits) and any costs associated with electronic delivery of any
of the foregoing, (ii) the preparation, issuance and delivery of the certificates for the Securities and the issuance and delivery of the Securities to the Initial Purchasers, including any necessary issue or other transfer taxes and any stamp
or other taxes or duties payable in connection with the sale, issuance or delivery of the Securities to the Initial Purchasers, (iii) the fees and disbursements of the counsel, accountants and other advisors to the MRD Parties, (iv) the
qualification or exemption of the Securities under securities laws in accordance with the provisions of Section 3(f) hereof, including the reasonable fees and disbursements of counsel for the Initial Purchasers in connection therewith and in
connection with the preparation of any Blue Sky memorandum and any supplements thereto, (v) the fees and expenses of the Trustee, including the fees and disbursements of counsel for the Trustee in connection with the Transaction Documents
(other than the Indenture), (vi) all fees payable to any rating agencies for rating the Securities and all expenses and application fees incurred in connection with the approval of the Securities for clearance, settlement and book-entry
transfer through DTC, and (vii) the transportation and other expenses incurred by or on behalf of the MRD Parties in connection with presentations to prospective purchasers of the Securities (including one-half of the cost of the chartered
plane used by both representatives of the MRD Parties and the Initial Purchasers in connection with the presentations to prospective purchasers of the Securities); provided, that except as expressly provided in this Section 4(a) and
Section 4(b), the Initial Purchasers shall pay their own costs and expenses, including the costs and expenses of their counsel. 

  
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 (b) Reimbursement. If this Agreement is terminated by the Representative in accordance
with the provisions of Section 5 or Section 9(a)(ii)(A) hereof (other than by reason of any action or default by any of the Initial Purchasers), the MRD Parties, jointly and severally, will reimburse the Initial Purchasers for all of their
out-of-pocket expenses reasonably incurred in connection with the proposed purchase and the offering and sale of the Securities, including the reasonable fees and disbursements of counsel for the Initial Purchasers. 

SECTION 5. Conditions of Initial Purchasers’ Obligations. The obligations of the several Initial Purchasers hereunder are
subject to the accuracy of the representations and warranties of the MRD Parties contained in this Agreement on the date hereof and as of the Closing Date (except to the extent any such representation and warranty expressly relates to an earlier
date (in which case on and as of such earlier date)), or in certificates signed by any officer of the MRD Parties or any of their respective Subsidiaries (whether signed on behalf of such officer, such MRD Party or such Subsidiary) delivered to the
Representative or counsel for the Initial Purchasers, to the performance by the MRD Parties of their respective covenants and other obligations hereunder, and to the following further conditions: 

(a) Opinion of Counsel for the MRD Parties. At the Closing Date, the Representative shall have received the opinion, dated as of the
Closing Date, of Akin Gump Strauss Hauer & Feld LLP, counsel for the MRD Parties (“Issuers’ Counsel”), in form and substance satisfactory to the Representative, together with signed or reproduced copies of such opinion
for each of the other Initial Purchasers, to the effect set forth in Exhibit G hereto. 
 (b) Opinion of Counsel for Initial
Purchasers. At the Closing Date, the Representative shall have received the favorable letter, dated as of the Closing Date, of Vinson & Elkins L.L.P., counsel for the Initial Purchasers, together with signed or reproduced copies of such
letter for each of the other Initial Purchasers, with respect to the Securities to be sold by the Company pursuant to this Agreement, the Indenture, the General Disclosure Package and the Offering Memorandum, and any amendments or supplements
thereto and such other matters as the Representative may reasonably request. 
 (c) Officers’ Certificate. At the Closing Date,
there shall not have been, since the date hereof or since the respective dates as of which information is given in the General Disclosure Package and the Offering Memorandum (in each case exclusive of any amendments or supplements thereto subsequent
to the date of this Agreement), any material adverse change or any development that could reasonably be expected to result in a material adverse change, in the condition (financial or other), results of operations, business, properties, management
or prospects of the MRD Entities taken as a whole, whether or not arising in the ordinary course of business. At the Closing Date, the Representative shall have received a certificate, signed on behalf of each of the MRD Parties by the President or
the Chief Executive Officer of each of the MRD Parties and the Chief Financial Officer, Vice President, Finance or Chief Accounting Officer of each of the MRD Parties, dated as of the Closing Date, to the effect that (i) there has been no such
material adverse change, (ii) the representations and warranties of the MRD Parties in this Agreement are true and correct at and as of the Closing Date with the same force and effect as though expressly made at and as of the Closing Date
(except to the extent any such representation and warranty expressly relates to an earlier date (in which case on and as of such earlier date)) and (iii) the MRD Parties have complied with all agreements and satisfied all conditions on their
part to be performed or satisfied at or prior to the Closing Date under or pursuant to this Agreement. 

  
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 (d) Comfort Letters. At the time of the execution of this Agreement, the Representative
shall have received from (i) KPMG LLP (“KPMG”) a letter, dated the date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for each of the
other Initial Purchasers, containing statements and information of the type ordinarily included in accountants’ “comfort letters” to initial purchasers with respect to the financial statements and certain financial information of the
Company contained in the General Disclosure Package, any Issuer Free Writing Documents (other than any electronic road show) and the Offering Memorandum and any amendments or supplements to any of the foregoing and (ii) NSAI a letter, dated the
date of this Agreement and in form and substance satisfactory to the Representative, together with signed or reproduced copies of such letter for each of the other Initial Purchasers, containing statements and information of the type ordinarily
included in reserve engineers’ “comfort letters” to initial purchasers with respect to the reserve reports described in Section 1(a)(29) hereof and related reserve information contained in the General Disclosure Package, any
Issuer Free Writing Documents (other than any electronic road show) and the Offering Memorandum and any amendments or supplements to any of the foregoing. 

(e) Bring-Down Comfort Letters. At the Closing Date, the Representative shall have received from each of KPMG and NSAI a letter, dated
as of the Closing Date and in form and substance satisfactory to the Representative, to the effect that they reaffirm the statements made in the letter furnished pursuant to subsection (d) of this Section, except that the specified date
referred to shall be a date not more than three business days prior to the Closing Date. 
 (f) No Downgrade. There shall not have
occurred, on or after the date of this Agreement, any downgrading in the rating of any debt securities of or guaranteed by the Company, any preferred securities of the Company or any debt securities, preferred securities or trust preferred
securities of any Guarantor by any “nationally recognized statistical rating organization” (as defined by the Commission in Section 3(a)(62) of the 1934 Act) or any public announcement that any such organization has placed its rating
on the Company or any such debt securities, preferred securities or other securities under surveillance or review or on a so-called “watch list” (other than an announcement with positive implications of a possible upgrading, and no
implication of a possible downgrading, of such rating) or any announcement by any such organization that the Company or any such debt securities, preferred securities or other securities has been placed on negative outlook. 

(g) Additional Documents. At the Closing Date, counsel for the Initial Purchasers shall have been furnished with such documents and
opinions as they may require for the purpose of enabling them to pass upon the issuance and sale of the Securities as herein contemplated, or in order to evidence the accuracy of any of the representations or warranties, or the fulfillment of any of
the conditions, contained in this Agreement, or as the Representative or counsel for the Initial Purchasers may otherwise reasonably request; and all proceedings taken by the Company or any Guarantor in connection with the issuance and sale of the
Securities as herein contemplated and in connection with the other transactions contemplated by this Agreement shall be satisfactory in form and substance to the Representative. 

  
 22 

 (h) Termination of Agreement. If any condition specified in this Section 5 shall not
have been fulfilled when and as required to be fulfilled, this Agreement may be terminated by the Representative by notice to the MRD Parties at any time on or prior to the Closing Date and such termination shall be without liability of any party to
any other party except as provided in Section 4 hereof and except that Sections 1, 2(d), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19 and 20 hereof shall survive any such termination of this Agreement and remain in full force and effect. 

SECTION 6. Indemnification. 

(a) Indemnification by the MRD Parties. Each of the MRD Parties agrees, jointly and severally, to indemnify and hold harmless each
Initial Purchaser, its affiliates, and its and their officers, directors, employees, agents, partners and members and each person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act as follows: 
 (i) against any and all loss, liability, claim, damage and expense whatsoever, as incurred,
arising out of or based upon any untrue statement or alleged untrue statement of a material fact in the Preliminary Offering Memorandum, any Issuer Free Writing Document, the General Disclosure Package or the Offering Memorandum (or any amendment or
supplement to any of the foregoing), or in any materials, presentations, information or any General Solicitation provided to investors by, or with the approval in writing of, any MRD Party in connection with the marketing of the offering of the
Securities, including any road show or investor presentations made to investors by the Company (whether in person or electronically), or the omission or alleged omission therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading; 
 (ii) against any and all loss, liability,
claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of, or pursuant to a judgment or other disposition in, any litigation, or any investigation or proceeding by any governmental or
self-regulatory agency or body, commenced or threatened, or of any claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section 6(d)
below) any such settlement is effected with the written consent of the MRD Parties; and 
 (iii) against any and all expense
whatsoever (including the fees and disbursements of counsel) reasonably incurred in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental or self-regulatory agency or body, commenced or
threatened, or any claim whatsoever arising out of or based upon any such untrue statement or omission, or any such alleged untrue statement or omission, to the extent that any such expense is not paid under (i) or (ii) above, 

provided, however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising out of
or based upon any untrue statement or omission or alleged untrue statement or omission made in reliance upon and in conformity with written information furnished to the MRD Parties by any Initial Purchaser through the Representative

  
 23 

 
expressly for use in the Preliminary Offering Memorandum, any Issuer Free Writing Document, Permitted General Solicitation, the General Disclosure Package or the Offering Memorandum (or in any
amendment or supplement to any of the foregoing), it being understood and agreed that the only such information furnished by the Initial Purchasers as aforesaid consists of the information described as such in Section 6(b) hereof. 

(b) Indemnification by the Initial Purchasers. Each Initial Purchaser agrees, severally and not jointly, to indemnify and hold harmless
the MRD Parties, their respective directors and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act against any and all loss, liability, claim, damage and expense
described in the indemnity contained in subsection (a) of this Section 6, as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Preliminary Offering Memorandum, any
Issuer Free Writing Document, Permitted General Solicitation or the Offering Memorandum (or any amendment or supplement to any of the foregoing), in reliance upon and in conformity with written information furnished to any MRD Party by any Initial
Purchaser through the Representative expressly for use therein. The MRD Parties hereby acknowledge and agree that the information furnished to any of the MRD Parties by the Initial Purchasers through the Representative expressly for use in the
General Disclosure Package, any Issuer Free Writing Document, General Solicitation consented to by the Company in writing or the Offering Memorandum (or any amendment or supplement to any of the foregoing), consists exclusively of the following
information appearing in the Preliminary Offering Memorandum and the Offering Memorandum: (i) the statements set forth in the last paragraph of the cover page regarding delivery of the Securities and (ii) under the heading “Plan of
Distribution,” the information found in the table in the first paragraph and in the third, ninth and tenth paragraphs. 
 (c)
Actions Against Parties; Notification. Each indemnified party shall give notice as promptly as reasonably practicable to each indemnifying party of any action commenced against it in respect of which indemnity may be sought hereunder;
provided, however, that the failure so to notify the indemnifying party (i) will not relieve the indemnifying party from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and
such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification
obligation provided in paragraph (a) or (b) above. Counsel to the indemnified parties shall be selected as follows: counsel to the Initial Purchasers and the other indemnified parties referred to in Section 6(a) above shall be
selected by the Representative; and counsel to the MRD Parties, their respective directors, each of their respective officers and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20
of the 1934 Act shall be selected by the Company. An indemnifying party may participate at its own expense in the defense of any such action; provided, however, that counsel to the indemnifying party shall not (except with the consent of the
indemnified party) also be counsel to the indemnified party. In no event shall the indemnifying party be liable for the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for the Initial
Purchasers and the other indemnified parties referred to in Section 6(a) above; and the fees and expenses of more than one counsel (in addition to any local counsel) separate from their own counsel for the MRD Parties, their respective
directors, each of their respective officers and each person, if any, who controls 

  
 24 

 
the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, in each case in connection with any one action or separate but similar or related actions in
the same jurisdiction arising out of the same general allegations or circumstances. No indemnifying party shall, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect
to any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever in respect of which indemnification or contribution could be sought under this Section 6 or
Section 7 hereof (whether or not the indemnified parties are actual or potential parties thereto), unless such settlement, compromise or consent (i) includes an unconditional release of each indemnified party from all liability arising out
of such litigation, investigation, proceeding or claim and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified party. 

(d) Settlement Without Consent if Failure to Reimburse. If at any time an indemnified party shall have requested an indemnifying party
to reimburse the indemnified party for fees and expenses of counsel as contemplated by this Section 6, such indemnifying party agrees that it shall be liable for any settlement of the nature contemplated by Section 6(a)(ii) effected
without its written consent if (i) such settlement is entered into more than 45 days after receipt by such indemnifying party of the aforesaid request, (ii) such indemnifying party shall have received notice of the terms of such settlement
at least 30 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed such indemnified party in accordance with such request prior to the date of such settlement. 

SECTION 7. Contribution. If the indemnification provided for in Section 6 hereof is for any reason unavailable to or
insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims,
damages and expenses incurred by such indemnified party, as incurred, (i) in such proportion as is appropriate to reflect the relative benefits received by the MRD Parties, on the one hand, and the Initial Purchasers, on the other hand, from
the offering of the Securities pursuant to this Agreement or (ii) if the allocation provided by clause (i) is not permitted by applicable law, in such proportion as is appropriate to reflect not only the relative benefits referred to in
clause (i) above but also the relative fault of the MRD Parties, on the one hand, and of the Initial Purchasers, on the other hand, in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or
expenses, as well as any other relevant equitable considerations. 
 The relative benefits received by the MRD Parties, on the one hand, and
the Initial Purchasers, on the other hand, in connection with the offering of the Securities pursuant to this Agreement shall be deemed to be in the same respective proportions as the total net proceeds from the offering of the Securities pursuant
to this Agreement (before deducting expenses) received by the MRD Parties and the total discounts and commissions received by the Initial Purchasers, in each case as determined pursuant to this Agreement, bear to the aggregate initial offering price
of the Securities as set forth on the cover of the Offering Memorandum. 
 The relative fault of the MRD Parties, on the one hand, and the
Initial Purchasers, on the other hand, shall be determined by reference to, among other things, whether any such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact

  
 25 

 
relates to information supplied by the MRD Parties, on the one hand, or by the Initial Purchasers, on the other hand, and the parties’ relative intent, knowledge, access to information and
opportunity to correct or prevent such statement or omission. 
 The MRD Parties and the Initial Purchasers agree that it would not be just
and equitable if contribution pursuant to this Section 7 were determined by pro rata allocation (even if the Initial Purchasers were treated as one entity for such purpose) or by any other method of allocation which does not take account of the
equitable considerations referred to above in this Section 7. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 7 shall be deemed to include any
legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim
whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission. 
 Notwithstanding the provisions of this
Section 7, no Initial Purchaser shall be required to contribute any amount in excess of an amount equal to the total discounts and commissions received by the Initial Purchaser pursuant to this Agreement by reason of any such untrue or alleged
untrue statement or omission or alleged omission. 
 No person guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of the 1933 Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 

For purposes of this Section 7, each affiliate, officer, director, employee, partner and member of each Initial Purchaser and each
person, if any, who controls any Initial Purchaser within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, shall have the same rights to contribution as such Initial Purchaser, and each director of each of the MRD
Parties, each officer of each of the MRD Parties, and each person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act, shall have the same rights to contribution as the MRD
Parties. The Initial Purchasers’ respective obligations to contribute pursuant to this Section 7 are several in proportion to the principal amount of Notes set forth opposite their respective names in Exhibit A hereto and not joint.

 SECTION 8. Representations, Warranties and Agreements to Survive Delivery. All the respective representations, warranties,
indemnities and agreements of the MRD Parties and the Initial Purchasers shall remain operative and in full force and effect, regardless of any investigation made by or on behalf of any Initial Purchaser or the MRD Parties, and shall survive
delivery of and payment for the Securities. 
 SECTION 9. Termination of Agreement. 

(a) Termination; General. The Representative may terminate this Agreement, by notice to the Company, at any time on or prior to the
Closing Date (i) if there has occurred any material adverse change in the financial markets in the United States or the international financial markets, any declaration of a national emergency or war by the United States, any outbreak of
hostilities or escalation thereof or other calamity or crisis or any change or 

  
 26 

 
development involving a prospective change in national or international political, financial or economic conditions (including, without limitation, as a result of terrorist activities), in each
case the effect of which is such as to make it, in the judgment of the Representative, so material and adverse as to make it impracticable or inadvisable to proceed with the offering, sale or delivery of the Securities or to enforce contracts for
the sale of the Securities on the terms and in the manner contemplated in the General Disclosure Package and the Offering Memorandum, or (ii) (A) if trading in any securities of the Company has been suspended by the Commission or the Nasdaq
Global Market or (B) if trading generally on the NYSE, the Nasdaq Global Select Market or the Nasdaq Global Market has been suspended or limited, or minimum or maximum prices for trading have been fixed, or maximum ranges for prices have been
required, by any of said exchanges or by order of the Commission or any other governmental authority or (iii) if a banking moratorium has been declared by either Federal or New York authorities. 

(b) Liabilities. If this Agreement is terminated pursuant to this Section 9, such termination shall be without liability of any
party to any other party except that the MRD Parties shall be obligated to reimburse the expenses of the Initial Purchasers as provided in Section 4 hereof, and except that Sections 1, 2(d), 6, 7, 8, 11, 12, 13, 14, 15, 17, 18, 19 and 20
hereof shall survive such termination and remain in full force and effect. 
 SECTION 10. Default by One or More of the Initial
Purchasers. If one or more of the Initial Purchasers shall fail at the Closing Date to purchase the aggregate principal amount of Securities which it or they are obligated to purchase under this Agreement (the “Defaulted
Securities”), the Representative shall have the right, within 24 hours thereafter, to make arrangements for one or more of the non-defaulting Initial Purchasers, or any other purchaser, to purchase all, but not less than all, of the
Defaulted Securities in such amounts as may be agreed upon and upon the terms herein set forth; if, however, the Representative shall not have completed such arrangements within such 24-hour period, then: 

(i) if the aggregate principal amount of Defaulted Securities does not exceed 10% of the aggregate principal amount of
Securities, each of the non-defaulting Initial Purchasers shall be obligated, severally and not jointly, to purchase the full amount of such Defaulted Securities in the proportions that their respective underwriting obligations hereunder bear to the
underwriting obligations of all non-defaulting Initial Purchasers; or 
 (ii) if the number of Defaulted Securities exceeds
10% of the aggregate principal amount of Securities, this Agreement shall terminate without liability on the part of any non-defaulting Initial Purchaser. 

No action taken pursuant to this Section 10 shall relieve any defaulting Initial Purchaser from liability in respect of its default. 

In the event of any such default which does not result in a termination of this Agreement, the Representative shall have the right to postpone
the Closing Date for a period not exceeding seven days in order to effect any required changes in the General Disclosure Package or Offering Memorandum or in any other documents or arrangements. As used herein, the term “Initial Purchaser”
includes any person substituted for an Initial Purchaser under this Section 10. 

  
 27 

 SECTION 11. Notices. All notices and other communications hereunder shall be in
writing, shall be effective only upon receipt and shall be mailed, delivered by hand or overnight courier, or transmitted by fax (with the receipt of any such fax to be confirmed by telephone). Notices to the Initial Purchasers shall be directed to
the Representative at Citigroup General Counsel (fax no.: (212) 816-7912) and confirmed to Citigroup at 388 Greenwich Street, New York, New York 10013, Attention: General Counsel; and notices to the MRD
Parties shall be directed to 1301 McKinney, Suite 2100, Houston, Texas 77010, Attention: General Counsel, fax no. (713) 588-8301. 

SECTION 12. Parties. This Agreement shall each inure to the benefit of and be binding upon the Initial Purchasers, the MRD Parties
and their respective successors. Nothing expressed or mentioned in this Agreement is intended or shall be construed to give any person, firm or corporation, other than the Initial Purchasers, the MRD Parties and their respective successors and the
controlling persons and other indemnified parties referred to in Sections 6 and 7 and their successors, heirs and legal representatives, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein
contained. This Agreement and all conditions and provisions hereof are intended to be for the sole and exclusive benefit of the Initial Purchasers, the MRD Parties and their respective successors, and said controlling persons and other indemnified
parties and their successors, heirs and legal representatives, and for the benefit of no other person or entity. No purchaser of Securities from any Initial Purchaser shall be deemed to be a successor by reason merely of such purchase. 

SECTION 13. GOVERNING LAW AND TIME. THIS AGREEMENT AND ANY CLAIM, CONTROVERSY OR DISPUTE ARISING UNDER OR RELATED TO THIS
AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. EXCEPT AS OTHERWISE EXPRESSLY SET FORTH HEREIN, SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. 

SECTION 14. Effect of Headings. The Section and Exhibit headings herein are for convenience only and shall not affect the
construction hereof. 
 SECTION 15. Definitions. As used in this Agreement, the following terms have the respective meanings set
forth below: 
 “Applicable Time” means 3:05 p.m. (New York City time) on June 25, 2014 or such other time as agreed
by the Company, the Guarantors and the Representative. 
 “Commission” means the Securities and Exchange Commission. 

“DTC” means The Depository Trust Company. 

“GAAP” means generally accepted accounting principles in the United States. 

“NYSE” means the New York Stock Exchange. 

“Transaction Documents” means this Agreement, the Indenture, the Notes, the Exchange Notes, the Exchange Guarantees and the
Registration Rights Agreement, collectively. 

  
 28 

 “1933 Act” means the Securities Act of 1933, as amended, and the rules and
regulations of the Commission thereunder. 
 “1934 Act” means the Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder. 
 “1939 Act” means the Trust Indenture Act of 1939, as amended, and
the rules and regulations of the Commission thereunder. 
 “1940 Act” means the Investment Company Act of 1940, as amended,
and the rules and regulations of the Commission thereunder. 
 All references in this Agreement to the Preliminary Offering Memorandum and
the Offering Memorandum, any Issuer Free Writing Document or any amendment or supplement to any of the foregoing shall be deemed to include all versions thereof delivered (physically or electronically) to the Representative or the Initial
Purchasers. 

  
 29 

 SECTION 16. Permitted Free Writing Documents. Each of the MRD Parties (including
their agents and representatives, other than the Initial Purchasers in their capacities as such) represents, warrants and agrees that it has not prepared, made, used, authorized, approved or referred to and, unless it obtains the prior written
consent of the Representative, it will not prepare, make, use, authorize, approve or refer to, any (i) offer relating to the Securities that (if the offering of the Securities was made pursuant to a registered offering under the 1933 Act) would
constitute an “Issuer Free Writing Prospectus” (as defined in Rule 433 under the 1933 Act) or that would constitute a “free writing prospectus” (as defined in Rule 405 under the 1933 Act) or (ii) electronic road show or
other written communication that constitutes an offer to sell or solicitation of an offer to buy the Securities other than a Permitted General Solicitation (any such communication described in the preceding clause (i) and clause (ii), an
“Issuer Free Writing Document”); provided, that the prior written consent of the Representative shall be deemed to have been given in respect of the Issuer Free Writing Documents, if any, listed on Exhibit E hereto and
to any electronic road show in the form previously provided by the Company to and approved by the Representative. Each of the Initial Purchasers, severally and not jointly, represents, warrants and agrees that it has not and will not use, authorize
use of, refer to, or participate in the planning for use of, any written communication that constitutes an offer to sell or the solicitation of an offer to buy the Securities other than (i) the General Disclosure Package and the Offering
Memorandum, (ii) any written communication that contains either (a) no “issuer information” (as defined in Rule 433(h)(2) under the 1933 Act) or (b) “issuer information” that was included (including through
incorporation by reference) in the General Disclosure Package or the Offering Memorandum, (iii) any written communication listed on Exhibit E or prepared pursuant to Section 3(p) above (including any electronic road show) or a General
Solicitation consented to by the Company in writing, (iv) any written communication prepared by such Initial Purchaser and approved by the Company in advance in writing or (v) any written communication relating to or that contains the
preliminary or final terms of the Securities or their offering and/or other information that was included (including through incorporation by reference) in the General Disclosure Package or the Offering Memorandum. 

SECTION 17. Absence of Fiduciary Relationship. Each of the MRD Parties acknowledges and agrees that: 

(a) each of the Initial Purchasers is acting solely as an initial purchaser in connection with the sale of the Securities and no fiduciary,
advisory or agency relationship between the MRD Parties, on the one hand, and any of the Initial Purchasers, on the other hand, has been created in respect of any of the transactions contemplated by this Agreement, irrespective of whether or not any
of the Initial Purchasers has advised or is advising the MRD Parties on other matters (it being understood that in any event that no Initial Purchaser shall be deemed to have provided legal, accounting or tax advice to the MRD Parties or any of the
Subsidiaries); 
 (b) the offering price of the Notes and the price to be paid by the Initial Purchasers for the Notes set forth in this
Agreement were established by the MRD Parties following discussions and arms-length negotiations with the Representative; 
 (c) each of the
MRD Parties is capable of evaluating and understanding, and understands and accepts, the terms, risks and conditions of the transactions contemplated by this Agreement; 

  
 30 

 (d) each of the MRD Parties is aware that the Initial Purchasers and their respective affiliates
are engaged in a broad range of transactions which may involve interests that differ from those of the MRD Parties and that none of the Initial Purchasers has any obligation to disclose such interests and transactions to the MRD Parties by virtue of
any fiduciary, advisory or agency relationship or otherwise; 
 (e) each of the MRD Parties has consulted its own legal and financial
advisors to the extent it deemed appropriate; and 
 (f) each of the MRD Parties waives, to the fullest extent permitted by law, any claims
it may have against any of the Initial Purchasers for breach of fiduciary duty or alleged breach of fiduciary duty. 
 SECTION 18.
Research Analyst Independence and Other Activities of the Initial Purchasers. Each of the MRD Parties acknowledges that the Initial Purchasers’ research analysts and research departments are required to be separate from, and not
influenced by, their respective investment banking divisions and are subject to certain regulations and internal policies, and that such Initial Purchasers’ research analysts may hold views and make statements or investment recommendations
and/or publish research reports with respect to the MRD Parties and/or the offering that differ from the views of their respective investment banking divisions. Each of the MRD Parties hereby waives and releases, to the fullest extent permitted by
applicable law, any claims that the MRD Parties may have against the Initial Purchasers arising from the fact that the views expressed by their research analysts and research departments may be different from or inconsistent with the views or advice
communicated to the MRD Parties by such Initial Purchasers’ investment banking divisions. Each of the MRD Parties also acknowledges that each of the Initial Purchasers is a full service securities firm and as such from time to time, subject to
applicable securities laws, may effect transactions for its own account or the account of its customers, may make recommendations and provide other advice, and may hold long or short positions in debt or equity securities of, or derivative products
related to, the companies that may be the subject of the transactions contemplated by this Agreement, and each of the MRD Parties hereby waives and releases, to the fullest extent permitted by applicable law, any claims that the MRD Parties may have
against the Initial Purchasers with respect to any such other activities. 
 SECTION 19. Waiver of Jury Trial. Each of the MRD
Parties and each of the Initial Purchasers hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions
contemplated hereby. 
 SECTION 20. Consent to Jurisdiction. Each of the MRD Parties hereby submits to the non-exclusive
jurisdiction of any U.S. federal or state court located in the Borough of Manhattan, the City and County of New York in any action, suit or proceeding arising out of or relating to or based upon this Agreement or any of the transactions contemplated
hereby, and each of the MRD Parties irrevocably and unconditionally waives any objection to the laying of venue of any action, suit or proceeding in any such court arising out of or relating to this Agreement or the transactions contemplated hereby
and irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such action, suit or proceeding has been brought in an inconvenient forum. 

  
 31 

 [Signature Page Follows] 

  
 32 

 If the foregoing is in accordance with your understanding of our agreement, please sign and
return to the MRD Parties a counterpart hereof, whereupon this instrument, along with all counterparts, will become a binding agreement among the Initial Purchasers and the MRD Parties in accordance with its terms. 

 

			
	Very truly yours,
	
	MEMORIAL RESOURCE DEVELOPMENT CORP.
		
	By:	 	 /s/ John A. Weinzierl

	Name:	 	John A. Weinzierl
	Title:	 	Chief Executive Officer
	
	MEMORIAL RESOURCE FINANCE CORP.
	MRD OPERATING LLC

 
					
		 	By:	 	Memorial Resource Development
		 		 	Corp., its sole member
	BETA OPERATING COMPANY, LLC
		 	By:	 	Memorial Resource Development
		 		 	Corp., its sole member
	
	WILDHORSE RESOURCES, LLC
		 	By:	 	Memorial Resource Development
		 		 	Corp., its sole member

 
			
		
	By:	 	 /s/ John A. Weinzierl

	Name:	 	John A. Weinzierl
	Title:	 	Chief Executive Officer
	
	CLASSIC HYDROCARBONS GP CO., L.L.C.
	CLASSIC HYDROCARBONS HOLDINGS, L.P.

 
					
		 	By:	 	Classic Hydrocarbons GP Co., L.L.C.,
		 		 	its general partner

 
			
		
	By:	 	 /s/ John A. Weinzierl

	Name:	 	John A. Weinzierl
	Title:	 	President and Chief Executive Officer

 [Signature Page to Purchase Agreement] 

					
	CLASSIC OPERATING CO. LLC
		 	By:	 	Classic Hydrocarbons, Inc., its sole
		 		 	member
	CLASSIC HYDROCARBONS OPERATING, LLC
	CLASSIC HYDROCARBONS, INC.
	CRATON ENERGY GP III, LLC
	CRATON ENERGY HOLDINGS III, LP
			
		 	By:	 	Craton GP III, LLC, its general
		 		 	partner

 
			
		
	By:	 	 /s/ John A. Weinzierl

	Name:	 	John A. Weinzierl
	Title:	 	President

 [Signature Page to Purchase Agreement] 

			
	CONFIRMED AND ACCEPTED,
	as of the date first above written:
	
	CITIGROUP GLOBAL MARKETS INC.
		
	By	 	 /s/ Sonu Johl

	Name:	 	Sonu Johl
	Title:	 	Vice President

 For itself and as Representative of the Initial Purchasers named in Exhibit A hereto. 

[Signature Page to Purchase Agreement] 

 EXHIBIT A 

INITIAL PURCHASERS 
  

					
	 Name of Initial Purchasers
	  	Principal Amount
of Securities	 
	 Citigroup Global Markets Inc.
	  	$	123,000,000	  
	 Merrill Lynch, Pierce, Fenner & Smith

                   
  Incorporated
	  	 	93,000,000	  
	 Barclays Capital Inc.
	  	 	48,000,000	  
	 BMO Capital Markets Corp.
	  	 	48,000,000	  
	 J.P. Morgan Securities LLC
	  	 	48,000,000	  
	 RBC Capital Markets, LLC
	  	 	48,000,000	  
	 Wells Fargo Securities, LLC
	  	 	48,000,000	  
	 Capital One Securities, Inc.
	  	 	18,000,000	  
	 Comerica Securities, Inc.
	  	 	18,000,000	  
	 Credit Agricole Securities (USA) Inc.
	  	 	18,000,000	  
	 Goldman, Sachs & Co.
	  	 	18,000,000	  
	 ING Financial Markets LLC
	  	 	18,000,000	  
	 Mitsubishi UFJ Securities (USA), Inc.
	  	 	18,000,000	  
	 Natixis Securities Americas LLC
	  	 	18,000,000	  
	 Wedbush Securities Inc.
	  	 	18,000,000	  
	 Total
	  	$	600,000,000	  

  
 A-1 

 EXHIBIT B 

GUARANTORS 
  

					
	 Name
	 	 Type of Entity
	 	 Jurisdiction of
Organization

	Classic Hydrocarbons Holdings, L.P.	 	Limited partnership	 	Texas
	Classic Hydrocarbons GP Co., L.L.C.	 	Limited liability company	 	Texas
	Classic Operating Co. LLC	 	Limited liability company	 	Delaware
	Classic Hydrocarbons Operating, LLC	 	Limited liability company	 	Delaware
	Classic Hydrocarbons, Inc.	 	Corporation	 	Delaware
	Craton Energy GP III, LLC	 	Limited liability company	 	Texas
	Craton Energy Holdings III, LP	 	Limited partnership	 	Texas
	Beta Operating Company, LLC	 	Limited liability company	 	Delaware
	Memorial Resource Finance Corp.	 	Corporation	 	Delaware
	MRD Operating LLC	 	Limited liability company	 	Delaware
	WildHorse Resources, LLC	 	Limited liability company	 	Delaware

  
 B-1 

 EXHIBIT C 

SUBSIDIARIES 
  

			
	 Name
	  	Jurisdiction of Organization
	MRD Operating LLC	  	Delaware
	WildHorse Resources, LLC	  	Delaware
	Memorial Production Partners GP LLC	  	Delaware
	Memorial Resource Finance Corp.	  	Delaware
	Beta Operating Company, LLC	  	Delaware
	Classic Hydrocarbons Holdings, L.P.	  	Texas
	Classic Hydrocarbons GP Co., L.L.C.	  	Texas
	Classic Operating Co. LLC	  	Delaware
	Classic Hydrocarbons Operating, LLC	  	Delaware
	Classic Hydrocarbons, Inc.	  	Delaware
	Craton Energy GP III, LLC	  	Texas
	Craton Energy Holdings III, LP	  	Texas
	Memorial Production Partners LP	  	Delaware
	Memorial Production Operating LLC	  	Delaware
	Memorial Production Finance Corporation	  	Delaware
	Memorial Midstream LLC	  	Texas
	Memorial Energy Services LLC	  	Delaware
	Columbus Energy, LLC	  	Delaware
	Prospect Energy, LLC	  	Colorado
	WHT Energy Partners LLC	  	Delaware
	WHT Carthage LLC	  	Delaware
	Rise Energy Operating, LLC	  	Delaware
	Rise Energy Minerals, LLC	  	Delaware
	Rise Energy Beta, LLC	  	Delaware
	San Pedro Bay Pipeline Company	  	California

  
 C-1 

 EXHIBIT D 

FORM OF PRICING TERM SHEET 

Memorial Resource Development Corp. 

PRICING TERM SHEET 

$600,000,000 
 5.875%
Senior Notes due 2022 
 The information in this term sheet supplements the preliminary offering memorandum, dated June 23, 2014 (the
“Preliminary Memorandum”), and supersedes the information in the Preliminary Memorandum to the extent inconsistent with the information in the Preliminary Memorandum. Other information presented in the Preliminary Memorandum
is deemed to have changed to the extent affected by the information in this term sheet. This term sheet is qualified in its entirety by reference to the Preliminary Memorandum. Terms used herein but not defined herein shall have the respective
meanings as set forth in the Preliminary Memorandum. 
  

			
	Issuer:	  	Memorial Resource Development Corp.
		
	Security:	  	5.875% Senior Notes due 2022
		
	Final Maturity Date:	  	July 1, 2022
		
	Principal Amount:	  	$600,000,000 (increased from $300,000,000)
		
	Distribution:	  	144A/Regulation S with registration rights
		
	Gross Proceeds:	  	$600,000,000
		
	Net Proceeds After Estimated Offering Expenses:	  	$586,000,000
		
	Coupon:	  	5.875%
		
	Interest Payment Dates:	  	January 1 and July 1, commencing on January 1, 2015
		
	Record Dates:	  	December 15 and June 15
		
	Offering Price:	  	100.00%, plus accrued interest from July 10, 2014
		
	Benchmark Treasury:	  	2.000% due May 31, 2021

  
 D-1 

					
	Benchmark Treasury Yield:	  	2.155%
		
	Spread to Benchmark Treasury:	  	+372 basis points
		
	Yield:	  	5.875%
		
	Optional Redemption:	  	On or after the following dates and at the following redemption prices (expressed as a percentage of principal amount), plus accrued and unpaid interest, if any, on the notes redeemed during the 12-month period
beginning on July 1 of the years indicated below:

  

					
			
	 Year
	  	 Percentage
	 	  
	 2017
	  	104.406%	 
	 2018
	  	102.938%	 
	 2019
	  	101.469%	 
	 2020 and thereafter
	  	100.000%	 

  

					
		
	Make-Whole Redemption:	  	Prior to July 1, 2017, at a redemption price equal to 100% of the principal amount of the notes redeemed, plus the Applicable Premium as of, and accrued and unpaid interest to, the date of redemption, as
described in the Preliminary Memorandum
		
	Equity Clawback:	  	Up to 35% of the notes, prior to July 1, 2017 at 105.875%, plus accrued and unpaid interest, if any, to the date of redemption
		
	Change of Control:	  	Mandatory offer to purchase at 101% of principal, plus accrued and unpaid interest, if any, to the date of purchase
			
	Trade Date:	  	June 25, 2014	  	
			
	Expected Settlement Date:	  	July 10, 2014 (T+10)	  	
			
	CUSIP/ISIN:	  	 144A Notes
	  	 Reg S Notes

		  	CUSIP: 58605Q AA7	  	CUSIP: U58714 AA1
			
		  	ISIN: US58605QAA76	  	ISIN: USU58714AA14
		
	Denominations:	  	Minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof
		
	Ratings:*	  	 Caa1 by Moody’s Investors Service, Inc.

B- by Standard & Poor’s Ratings Services

  
 D-2 

			
	Joint Book-Running Managers:	  	 Citigroup Global Markets Inc.
 Merrill Lynch,
Pierce, Fenner & Smith

                      Incorporated

Barclays Capital Inc.
 BMO Capital Markets Corp.

J.P. Morgan Securities LLC
 RBC Capital Markets, LLC

Wells Fargo Securities, LLC

		
	Co-Managers:	  	 Capital One Securities, Inc
 Comerica
Securities, Inc.
 Credit Agricole Securities (USA) Inc.

Goldman, Sachs & Co.
 ING Financial Markets LLC

Mitsubishi UFJ Securities (USA), Inc.
 Natixis Securities Americas
LLC
 Wedbush Securities Inc.

  

	*	Note: A securities rating is not a recommendation to buy, sell or hold securities and may be subject to revision or withdrawal at any time. 

Additional Changes to the Preliminary Memorandum: 

Summary – The Offering 
 On page 15 of the
Preliminary Memorandum, the second paragraph under the caption “Ranking” is hereby replaced in its entirety with the following: 
 “As of
March 31, 2014, on a pro forma basis after giving effect to this offering, the application of the net proceeds from this offering as described herein, and the other transactions described under “—Recent Developments,” the MRD
Segment would have had approximately $634.4 million of total indebtedness, approximately $34.4 million of which would be secured indebtedness under our senior secured revolving credit facility to which the notes would be effectively subordinated (to
the extent of the value of the assets securing such indebtedness), and we would have had approximately $634.1 million of additional borrowing capacity available after taking into account an anticipated reduction in the borrowing base in connection
with this offering, subject to compliance with financial covenants, for additional secured borrowings which would be effectively senior to the notes. In connection with the issuance of the notes, we expect the borrowing base under our senior secured
revolving credit facility to be automatically decreased by approximately $56.5 million.” 
 Summary Historical Consolidated and Combined Pro
Forma Financial Data 
 On page 21 of the Preliminary Memorandum, the net income (loss) row is adjusted as follows: MRD Segment Pro Forma net income
(loss) (in thousands) for the Year Ended December 31, 2013 is $(2,993) and for the Three Months Ended March 31, 2014 is $12,229. 

  
 D-3 

 Capitalization 

On page 48 of the Preliminary Memorandum, the Pro Forma as Further Adjusted column is hereby adjusted as follows (amounts in thousands): MRD senior secured
revolving credit facility is $34,351, Senior Notes due 2022 offered hereby is $600,000, Total long-term debt is $1,622,786 and Total Capitalization is $2,483,930. 

*** 
 This communication is intended for the sole
use of the person to whom it is provided by the sender. 
 These securities have not been registered under the Securities Act of 1933, as
amended (the “Securities Act”), and may only be sold to qualified institutional buyers pursuant to Rule 144A under the Securities Act and to persons outside the United States under Regulation S under the Securities Act.

 ANY DISCLAIMERS OR OTHER NOTICES THAT MAY APPEAR BELOW ARE NOT APPLICABLE TO THIS COMMUNICATION AND SHOULD BE DISREGARDED. SUCH DISCLAIMERS OR
OTHER NOTICES WERE AUTOMATICALLY GENERATED AS A RESULT OF THIS COMMUNICATION BEING SENT VIA BLOOMBERG OR ANOTHER EMAIL SYSTEM. 

  
 D-4 

 EXHIBIT E 

PRELIMINARY OFFERING MEMORANDUM AMENDMENTS; 

ISSUER FREE WRITING DOCUMENTS 

Pricing Term Sheet containing the terms of the Securities, substantially in the form of Exhibit D hereto. 

  
 E-1 

 EXHIBIT F 

PERMITTED GENERAL SOLICITATIONS 
 None.

  
 F-1 

 EXHIBIT G 

FORM OF OPINION OF ISSUER’S COUNSEL 
  

	1.	Each MRD Party is validly existing as a limited partnership, limited liability company or corporation, as applicable, and is in good standing under the laws of the State of Delaware or, in the case of Classic
Hydrocarbons GP, Classic Hydrocarbons Holdings, Classic Pipeline, Craton GP and Craton Holdings, has the right to transact business in the State of Texas under the laws of the State of Texas. 

 

	2.	Each MRD Party (other than Texas entities) is duly qualified to do business as a foreign limited partnership, limited liability company or corporation, as applicable, in, and is in good standing under the laws of or (as
to the State of Texas, and as to Texas entities) has the right to transact business in, each jurisdiction (other than the State of Delaware) so identified on Exhibit C attached hereto. 

 

	3.	Each MRD Entity has all requisite entity power and authority to own its respective properties and conduct its business, in each case in all material respects, as described in the Pricing Disclosure Package and the Final
Offering Memorandum. Each MRD Party has the entity power and authority necessary to execute and deliver the Transaction Documents to which it is a party and perform its obligations under the Transaction Documents to which it is a party.

  

	4.	(a) The execution and delivery of the Transaction Documents by each MRD Party party thereto and the performance by each MRD Party of its respective obligations under the Transaction Documents to which it is a party has
been duly authorized by all necessary corporate or entity action, as applicable, on the part of such MRD Party. 

  

	 	(b) Each of the Purchase Agreement, the Indenture and the Security Agreement has been duly authorized, executed and delivered by each of the MRD Parties that is a party to such Transaction Document. 

 

	5.	No permit, consent, approval, authorization, order, registration, filing or qualification (“Consent”) of or with any court or governmental agency or body under the Included Laws is required in
connection with the offering, issuance or sale by the Company of the Notes, or the execution, delivery and performance by any of the MRD Parties of any of the Transaction Documents to which such MRD Party is a party or the performance of the actions
required to be taken by any of the MRD Parties pursuant to any of the Transaction Documents to which such MRD Party is a party, subject to the assumptions set forth in paragraph 12 and other than (a) such Consents required under state
securities or “Blue Sky” laws, (b) such Consents that have been obtained or made and (c) filings with the Commission or other Consents required in the performance by each of the MRD Parties of its obligations under the Purchase
Agreement. 

  

	6.	 None of the offering, issuance or sale of the Notes by the Company, the execution, delivery and performance by any of the MRD Parties of any of the
Transaction Documents to which such MRD Party is a party or the performance of the actions 

  
 G-1 

	 	
required to be taken by any of the MRD Parties pursuant to any of the Transaction Documents to which such MRD Party is arty conflicts or will conflict with or constitutes or will constitute a
breach or violation of or a default (or an event which, with notice or lapse of time or both, would constitute such a default) under, or results or will result in the creation or imposition of any Lien upon any property or assets of any of the MRD
Parties pursuant to, (a) any Constitutive Document of any of the MRD Parties, (b) any Material Agreement, (c) any law, rule or regulation of the Included Laws (including Regulations T, U and X of the Board of Governors of the Federal
Reserve System) or (d) any order, judgment, decree or injunction of any court or governmental agency or body known to us directed to any of the MRD Parties or any of their properties in a proceeding to which any of them or their property is a
party; provided, however, that no opinion is expressed pursuant to this paragraph with respect to federal securities laws and other anti-fraud laws. 

  

	7.	The Company is not and, after giving effect to the Offering and the application of the proceeds therefrom as described in the Pricing Disclosure Package and the Final Offering Memorandum, the Company will not be, an
“investment company” within the meaning of the Investment Company Act of 1940, as amended. 

  

	8.	The statements set forth in the Pricing Disclosure Package and the Final Offering Memorandum under the captions “Restructuring Transactions,” “Description of Notes,” “Description of Other
Indebtedness,” “Certain Relationships and Related Party Transactions,” “Transfer Restrictions,” “Certain United States Federal Income Tax Considerations” and “Certain ERISA Considerations,” insofar as
they summarize any agreement, statute or regulation or refer to statements of law or legal conclusions, are accurate and fair summaries in all material respects. The Indenture and the Notes conform in all material respects to the descriptions
thereof contained in the Pricing Disclosure Package and the Final Offering Memorandum under the caption “Description of Notes.” 

  

	9.	The Notes have been duly and validly authorized and executed by the Company and, when authenticated in accordance with the provisions of the Indenture and delivered to and paid for by the Initial Purchasers in
accordance with the terms of the Purchase Agreement, will be valid and legally binding obligations of the Company, entitled to the benefits of the Indenture and enforceable against the Company in accordance with their respective terms under the Laws
of the State of New York. 

  

	10.	The Indenture (including, with respect to the Guarantors, when the Notes have been duly and validly authenticated in accordance with the terms of the Indenture and duly and validly paid for by and delivered to the
Initial Purchasers in accordance with the terms of the Purchase Agreement, the guarantee of the Guarantors in respect of the Notes provided for in Article [10] of the Indenture) constitutes the valid and legally binding obligation of the MRD
Parties, enforceable against the MRD Parties in accordance with its terms under the Laws of the State of New York. 

  
 G-2 

	11.	Assuming without independent investigation, (a) that the Notes are sold to the Initial Purchasers, and initially resold by the Initial Purchasers, in accordance with the terms of and in the manner contemplated by,
the Purchase Agreement and the Final Offering Memorandum; (b) the accuracy of the representations and warranties of the MRD Parties set forth in the Purchase Agreement and the matters certified in those certain certificates delivered on the
date hereof; (c) the accuracy of the representations and warranties of the Initial Purchasers set forth in the Purchase Agreement; (d) the due performance and compliance by the MRD Parties and the Initial Purchasers of their respective
covenants and agreements set forth in the Purchase Agreement; and (e) the Initial Purchasers’ compliance with the Final Offering Memorandum and the transfer procedures and restrictions described therein, it is not necessary to register the
Notes under the Securities Act of 1933, as amended (the “Securities Act”) or to qualify an indenture in respect thereof under the Trust Indenture Act (the “TIA”) in connection with the issuance and
sale of the Notes by the Company to the Initial Purchasers or in connection with the offer, resale and delivery of the Notes by the Initial Purchasers in accordance with the terms of and in the manner contemplated by the Purchase Agreement and the
Final Offering Memorandum, it being expressly understood that we express no opinion in this paragraph 12 or paragraph 5 as to any subsequent offer or resale of any of the Notes. 

Our identification of documents and information as part of the Pricing Disclosure Package has been at your request and with your approval.
Such identification is for the limited purpose of making the statements set forth in this letter and is not the expression of a view by us as to whether any such information has been or should have been conveyed to investors generally or to any
particular investors at any particular time or in any particular manner. 
 Because the primary purpose of our professional engagement was
not to establish or confirm factual matters, financial, accounting or statistical information or reserve and production information, and because many determinations involved in the preparation of the Pricing Disclosure Package and the Final Offering
Memorandum are of a wholly or partially non-legal character, except as expressly set forth in paragraph 8 of this opinion letter, we are not passing upon and do not assume any responsibility for the accuracy, completeness or fairness of the
statements contained in the Pricing Disclosure Package and the Final Offering Memorandum and we make no representation that we have independently verified the accuracy, completeness or fairness of such statements. 

However, in the course of our acting as counsel to the Company in connection with the preparation of the Pricing Disclosure Package and the
Final Offering Memorandum, we have reviewed each such document and have participated in conferences and telephone conversations with representatives of the Company, representatives of the independent public accountants for the Company,
representatives of the independent reserve engineers for the applicable MRD Parties, representatives of the Initial Purchasers and representatives of the Initial Purchasers’ counsel, during which conferences and conversations the contents of
such documents and related matters were discussed. 
 Subject to the foregoing, on the basis of the information we gained in the course of
our participation in such conferences and conversations and our review of such documents, we confirm to you that no information has come to our attention that causes us to believe that (i) the Pricing Disclosure Package, as of 3:05 p.m. (New
York time) on June 25, 2014 (which you have informed us is a time prior to the time of the first sale of the Notes by any Initial Purchaser), 

  
 G-3 

 
contained any untrue statement of a material fact or omitted to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they are
made, not misleading or (ii) the Final Offering Memorandum, as of its date and as of the Closing Date, contained or contains any untrue statement of a material fact or omitted or omits to state any material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading, except that in the case of each of clauses (i)-(ii) above, we do not express any view as to the financial statements, the notes and schedules
thereto and other financial and accounting data and oil and gas reserve and production information contained therein or omitted therefrom. 

  
 G-4 

 ANNEX I 

Resale Pursuant to Regulation S or Rule 144A. Each Initial Purchaser understands that: 

Such Initial Purchaser agrees that it has not offered or sold and will not offer or sell the Securities in the United States or to, or for the
benefit or account of, a U.S. Person (other than a distributor), in each case, as defined in Rule 902 of Regulation S (i) as part of its distribution at any time and (ii) otherwise until 40 days after the later of the commencement of the
offering of the Securities pursuant hereto and the Closing Date, other than in accordance with Regulation S or another exemption from the registration requirements of the 1933 Act. The Initial Purchaser agrees that, during such 40-day restricted
period, it will not cause any advertisement with respect to the Securities (including any “tombstone” advertisement) to be published in any newspaper or periodical or posted in any public place and will not issue any circular relating to
the Securities, except such advertisements as are permitted by and include the statements required by Regulation S. 
 Such Initial
Purchaser agrees that, at or prior to confirmation of a sale of Securities by it to any distributor, dealer or person receiving a selling concession, fee or other remuneration during the 40-day restricted period referred to in Rule 903 of Regulation
S, it will send to such distributor, dealer or person receiving a selling concession, fee or other remuneration a confirmation or notice to substantially the following effect: 

“The Securities covered hereby have not been registered under the U.S. Securities Act of 1933, as amended (the “Securities
Act”), and may not be offered and sold within the United States or to, or for the account or benefit of, U.S. persons (i) as part of your distribution at any time or (ii) otherwise until 40 days after the later of the date the
Securities were first offered to persons other than distributors in reliance on Regulation S and the Closing Date, except in either case in accordance with Regulation S under the Securities Act (or in accordance with Rule 144A under the Securities
Act or to accredited investors in transactions that are exempt from the registration requirements of the Securities Act), and in connection with any subsequent sale by you of the Securities covered hereby in reliance on Regulation S under the
Securities Act during the period referred to above to any distributor, dealer or person receiving a selling concession, fee or other remuneration, you must deliver a notice to substantially the foregoing effect. Terms used above have the meanings
assigned to them in Regulation S under the Securities Act.” 
 Such Initial Purchaser agrees that the Securities offered and sold in
reliance on Regulation S will be represented upon issuance by a temporary global security that may not be exchanged for definitive securities until the expiration of the 40-day restricted period referred to in Rule 903 of Regulation S and only upon
certification of beneficial ownership of such Securities by non-U.S. persons or U.S. persons who purchased such Securities in transactions that were exempt from the registration requirements of the 1933 Act. 

  
 I-1Exhibit 10.1 Securities Purchase Agreement

EXHIBIT 10.1

SECURITIES PURCHASE AGREEMENT

This Securities Purchase Agreement (this “Agreement”) is dated as of June 20, 2014, by and among SofTech, Inc., a Massachusetts corporation (the “Company”), and Joseph P. Daly (the “Purchaser”).

WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to Section 4(2) of the Securities Act, and Rule 506 promulgated thereunder, the Company desires to issue and sell to Purchaser, and Purchaser, desires to purchase from the Company, securities of the Company as more fully described in this Agreement.

NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for other good and valuable consideration the receipt and adequacy of which are hereby acknowledged, the Company and Purchaser agree as follows:

ARTICLE I.

DEFINITIONS

1.1

Definitions. In addition to the terms defined elsewhere in this Agreement, for all purposes of this Agreement, the following terms have the meanings set forth in this Section 1.1:

“Action” shall have the meaning ascribed to such term in Section 3.1(j).

“Affiliate” means any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person as such terms are used in and construed under Rule 144 under the Securities Act. 

“Business Day” means any day except Saturday or Sunday which shall be a federal legal holiday in the United States, or any day on which banking institutions in the State of New York are authorized or required by law or other governmental action to close.

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

“Closing” means the closing of the purchase and sale of the Shares pursuant to Section 2.1.

“Closing Date” means the date when all of the Transaction Documents have been executed and delivered by the applicable parties thereto, and all conditions precedent to (i) the Purchaser’s obligations to pay the Subscription Amount and (ii) the Company’s obligations to deliver the Shares have been satisfied or waived.

“Commission” means the Securities and Exchange Commission.

“Common Stock” means the common stock of the Company, par value $0.10 per share, and any other class of securities into which such securities may hereafter be reclassified or changed.

“Common Stock Equivalents” means any securities of the Company or the Subsidiaries which would entitle the holder thereof to acquire at any time Common Stock, including, without limitation, any debt, preferred stock, rights, options, warrants, stock appreciation rights, restricted stock units or other instrument that is at any time convertible into or exercisable or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock.

“Company Counsel” means Edwards Wildman Palmer LLP, 111 Huntington Avenue, Boston, MA 02199.

“Company Material Contracts” has the meaning ascribed to such term in Section 3.1(dd).

“Contract” shall mean any written or oral note, bond, mortgage, loan, indenture, guarantee, contract, agreement, lease, license, permit, concession, franchise or other binding commitment, instrument or obligation to which the Company or any Subsidiary of the Company is a party or by which the Company or any of its Subsidiaries or any property or asset of the Company or any of its Subsidiaries is bound or affected, or result in the creation of any Lien on any property or asset of the Company or any of its Subsidiaries (each, a “Contract”).

 “Disclosure Letter” means the Disclosure Letter of the Company delivered concurrently herewith.

“EWP” means Edwards Wildman Palmer LLP, with offices located at 111 Huntington Avenue, Boston, Massachusetts 02199.

 “Environmental Law” means, as currently in effect, any applicable law concerning (i) the protection of the environment (including air, water, soil and natural resources) or (ii) the use, storage, handling, release or disposal of any substance presently listed, defined, designated or classified as hazardous, toxic or radioactive under any applicable law concerning the protection of the environment (including air, water, soil and natural resources), including petroleum and any derivative or by-products thereof.

“Equity Incentive Plan” means (i) any equity incentive, stock option or similar plan and (ii) any other agreement, arrangement, understanding or other document pursuant to which the Company is obligated to grant or issue Common Stock or Common Stock Equivalents to current or former employees in connection with their services to the Company, in each case adopted or approved by a majority of the non-employee members of the board of directors of the Company or a majority of the members of a committee of non-employee directors established.

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.

 “GAAP” shall have the meaning ascribed to such term in Section 3.1(h).

“Intellectual Property Rights” shall have the meaning ascribed to such term in Section 3.1(o).

 “Liens” means a lien, charge, security interest, encumbrance, right of first refusal, preemptive right or other restriction.

“Material Adverse Effect” shall have the meaning ascribed to such term in Section 3.1(b).

“Material Permits” shall have the meaning ascribed to such term in Section 3.1(m).

“MBCA” means the Massachusetts Business Corporation Act. 

“MGL” means the Massachusetts General Laws.

 “Per Share Purchase Price” equals $5.00 subject to adjustment for reverse and forward stock splits, stock dividends, stock combinations and other similar transactions of the Common Stock that occur after the date of this Agreement.

“Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

“Proceeding” means an Action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), whether commenced or threatened.

“Purchaser Party” shall have the meaning ascribed to such term in Section 4.9.

“Purchaser Put Right” shall have the meaning ascribed to such term in Section 4.1.

“Repurchase Date” shall have the meaning ascribed to such term in Section 4.1.

“Repurchase Notice” shall have the meaning ascribed to such term in Section 4.1.

“Repurchase Period” shall have the meaning ascribed to such term in Section 4.1.

“Repurchase Price” shall have the meaning ascribed to such term in Section 4.1.

“Required Approvals” shall have the meaning ascribed to such term in Section 3.1(e).

“Reinstatement Date” shall have the meaning ascribed to such term in Section 3.1(h). 

2

“Rule 144” means Rule 144 promulgated by the Commission pursuant to the Securities Act, as such rule may be amended from time to time, or any similar rule or regulation hereafter adopted by the Commission having substantially the same effect as such rule.

“SEC Reports” shall have the meaning ascribed to such term in Section 3.1(h).

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

“Shares” means the shares of Common Stock issued or issuable to the Purchaser pursuant to this Agreement and shall specifically exclude any other Common Stock.

“SOX” has the meaning ascribed to such term in Section 3.1(h).

 “Subscription Amount” means, as to the Purchaser, the aggregate amount to be paid for Shares purchased hereunder as specified below such Purchaser’s name on the signature page of this Agreement and next to the heading “Subscription Amount,” in United States dollars and in immediately available funds.

“Subsidiary” means Workgroup Technology Corporation, a Delaware corporation; Information Decisions Incorporated, a Michigan corporation; SofTech GmbH, a company formed under the laws of Germany; and Adra Systems Srl, a company formed under the laws of Italy. 

“Transaction Documents” means this Agreement and any other documents or agreements executed in connection with the transactions contemplated hereunder.

“Transfer Agent” means Registrar And Transfer Company, Attention: Eileen O’Neil, 10 Commerce Drive, Cranford, NJ 07016 (telephone no. 908-497-2300), and any successor transfer agent of the Company.

ARTICLE II.

PURCHASE AND SALE

2.1

Closing. On the Closing Date, upon the terms and subject to the conditions set forth herein, substantially concurrent with the execution and delivery of this Agreement by the parties hereto, the Company agrees to sell, and the Purchaser, severally and not jointly, agrees to purchase, at the Per Share Purchase Price, the number of Shares indicated on its signature page hereto. The Company and the Purchaser shall deliver the other items set forth in Section 2.2 deliverable at the Closing. Upon satisfaction of the conditions set forth in Sections 2.2 and 2.3, the Closing shall occur at the offices of EWP or such other location as the parties shall mutually agree.

2.2

Deliveries.

(a)

On or prior to the Closing Date, the Company shall deliver or cause to be delivered to the Purchaser the following:

(i)

this Agreement duly executed by the Company;

(ii)

a copy of the irrevocable instructions to the Transfer Agent instructing the Transfer Agent to deliver, on an expedited basis, a certificate or book-entry account evidencing the number of its respective Shares, registered in the name of such Purchaser;

and

(iii)

a certificate, dated as of the Closing Date and signed by its Chief Executive Officer or its Chief Financial Officer, certifying to the fulfillment of the conditions specified in Sections 2.3(b)(i). 

(b)

On or prior to the Closing Date, the Purchaser shall deliver or cause to be delivered to the Company the following:

(i)

this Agreement duly executed by such Purchaser; and

(ii)

such Purchaser’s Subscription Amount by wire transfer to the account as specified in writing by the Company.

3

2.3

Closing Conditions.

(a)

The obligations of the Company hereunder in connection with the Closing are subject to the following conditions being met:

(i)

the accuracy in all material respects of the representations and warranties of the Purchaser contained herein when made and on the Closing Date (except for representations and warranties that speak as of a specific date which shall be accurate in all material respects as of such date);

(ii)

all obligations, covenants and agreements of the Purchaser required to be performed at or prior to the Closing Date shall have been performed; and

(iii)

the delivery by the Purchaser of the items set forth in Section 2.2(b) of this Agreement.

(b)

The respective obligations of the Purchaser hereunder in connection with the Closing are subject to the following conditions being met:

(i)

the accuracy in all material respects of the representations and warranties of the Company contained herein when made and on the Closing Date (except for representations and warranties that speak as of a specific date which shall be accurate in all material respects as of such date);

(ii)

all obligations, covenants and agreements of the Company required to be performed at or prior to the Closing Date shall have been performed;

(iii)

the delivery by the Company of the items set forth in Section 2.2(a) of this Agreement; and

(iv)

as of the Closing Date there shall have been no Material Adverse Effect with respect to the Company since the date hereof.

2.4

Restriction on Use of Funds. The parties agree that up to $50,000 of the monies raised through this Agreement shall be used to repurchase the 101,411 shares held by Greenleaf Capital. In the event whereby the repurchase of the Greenleaf Capital shares is not completed within 90 days of the Closing for any reason, the sale of 10,000 of the common shares issued under this Agreement shall be deemed null and void, the $50,000 sale price shall be returned to Purchaser and the stock certificates cancelled. A cancellation fee equal to 3% of the $50,000 returned shall also be due to Purchaser upon the cancellation of the 10,000 share purchase.

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

3.1

Representations and Warranties of the Company. Except as set forth in the Disclosure Letter, which Disclosure Letter shall be deemed a part hereof and shall qualify any representation or otherwise made herein to the extent of the disclosure contained in the corresponding section of the Disclosure Letter, the Company hereby makes the following representations and warranties to the Purchaser:

(a)

Subsidiaries. All of the direct and indirect subsidiaries of the Company are set forth in the SEC Reports. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any Liens, and all of the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

4

(b)

Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default of any of the provisions of its respective certificate or articles of organization, bylaws or other organizational or charter documents. Section 3.1(b) of the Disclosure Letter sets forth the jurisdictions in which each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity. Each of the Company and the Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, would not have or reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of any Transaction Document, (ii) a material adverse effect on the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under any Transaction Document (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no Proceeding has been instituted in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

(c)

Authorization; Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by each of the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution and delivery of each of the Transaction Documents by the Company and the consummation by it of the transactions contemplated hereby and thereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, its board of directors or its stockholders in connection therewith other than in connection with the Required Approvals. Each Transaction Document has been (or upon delivery will have been) duly executed by the Company and, when delivered in accordance with the terms hereof and thereof, will constitute the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(d)

No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company, the issuance and sale of the Shares and the consummation by the Company of the other transactions contemplated hereby and thereby do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of organization, bylaws or other organizational or charter documents, or (ii) except as specified in schedule 3.1 (d) of the Disclosure Letter conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected; except in the case of each of clauses (ii) and (iii), such as would not have or reasonably be expected to result in a Material Adverse Effect. 

(e)

Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other Person in connection with the execution, delivery and performance by the Company of the Transaction Documents, other than (i) filings required pursuant to Section 4.4 of this Agreement, and (ii) the filing of Form D with the Commission and such filings as are required to be made under applicable state securities laws (collectively, the “Required Approvals”).

(f)

Issuance of the Shares. The Shares are duly authorized and, when issued and paid for in accordance with the applicable Transaction Documents, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company other than restrictions on transfer provided for in the Transaction Documents. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement.

5

(g)

Capitalization. The authorized capital stock of the Company consists of 20,000,000 shares of Common Stock and zero shares of preferred stock ("Preferred Stock"). The rights and privileges of each class of the Company's capital stock are as set forth in the Company's Articles of Organization. As of May 31, 2014, (i) 875,135 shares of Common Stock were issued and outstanding, (ii) no shares of Common Stock were held in the treasury of the Company or by Subsidiaries of the Company, and (iii) no shares of the Preferred Stock were issued or outstanding. 

Neither the Company nor any of its Subsidiaries has outstanding any restricted stock or stock that is otherwise subject to a repurchase or redemption right, except for the 50,000 shares subject to a put agreement as described in the Company’s SEC Reports and as contemplated by this Agreement, or right of first refusal in favor of the Company.

Except as set forth in the SEC Reports (i) there are no equity securities of any class of the Company or any of its Subsidiaries (other than equity securities of any such Subsidiary that are directly or indirectly owned by the Company), or any security exchangeable into or exercisable for such equity securities, issued, reserved for issuance or outstanding and (ii) there are no options, warrants, equity securities, calls, rights, commitments or agreements of any character to which the Company or any of its Subsidiaries is a party or by which the Company or any of its Subsidiaries is bound obligating the Company or any of its Subsidiaries to issue, exchange, transfer, deliver or sell, or cause to be issued, exchanged, transferred, delivered or sold, additional shares of capital stock or other equity interests of the Company or any of its Subsidiaries or any security or rights convertible into or exchangeable or exercisable for any such shares or other equity interests, or obligating the Company or any of its Subsidiaries to grant, extend, accelerate the vesting of, otherwise modify or amend or enter into any such option, warrant, equity security, call, right, commitment or agreement. Neither the Company nor any of its Subsidiaries has outstanding any stock appreciation rights, phantom stock, performance based rights or similar rights or obligations. Except as contemplated by this Agreement, there are no obligations, contingent or otherwise, of the Company or any of its Subsidiaries to repurchase, redeem or otherwise acquire any shares of Common Stock or the capital stock of the Company or any of its Subsidiaries or to provide funds to or make any investment (in the form of a loan, capital contribution or otherwise) in the Company or any Subsidiary of the Company or any other entity, other than guarantees of bank obligations of Subsidiaries of the Company entered into in the ordinary course of business consistent with past practice (the "Ordinary Course of Business"). Except as disclosed in Section 3.1(g), neither the Company nor any of its Affiliates is a party to or is bound by any, and to the knowledge of the Company, there are no, agreements or understandings with respect to the voting (including voting trusts and proxies) or sale or transfer (including agreements imposing transfer restrictions) of any shares of capital stock or other equity interests of the Company or any of its Subsidiaries. Except as disclosed in Section 3.1(g) of the Disclosure Letter, there are no registration rights, and there is no rights agreement, "poison pill" anti-takeover plan or other agreement or understanding to which the Company or any of its Subsidiaries is a party or by which it or they are bound with respect to any equity security of any class of the Company or any of its Subsidiaries or with respect to any equity security, partnership interest or similar ownership interest of any class of any of its Subsidiaries. 

All outstanding shares of Common Stock are, and all shares of Common Stock subject to issuance as specified in Section 3.1(g) above, upon issuance on the terms and conditions specified in the instruments pursuant to which they are issuable, will be, duly authorized, validly issued, fully paid and nonassessable and not subject to or issued in violation of any purchase option, call option, right of first refusal, preemptive right, subscription right or any similar right under any provision of the MBCA, the Company's Articles of Organization or By-laws or any agreement to which the Company is a party or is otherwise bound. 

All of the outstanding shares of capital stock and other equity securities or interests of each of the Company's Subsidiaries are duly authorized, validly issued, fully paid, nonassessable and free of preemptive rights.

6

(h)

SEC Reports; Financial Statements. On December 28, 2011 the Company’s registration document on Form S-1 was deemed effective thereby reinstating its obligations as a filing entity with the SEC (“Reinstatement Date”). Since the Reinstatement Date, the Company has filed all reports, schedules, forms, statements and other documents required to be filed by the Company under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable, and none of the SEC Reports, when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of the date hereof, the Company is not aware of any event occurring on or prior to the Closing Date (other than the transactions contemplated by the Transaction Documents) that requires the filing of a Form 8-K after the Closing. The financial statements of the Company included in the SEC Reports comply in all material respects with applicable accounting requirements and the rules and regulations of the Commission with respect thereto as in effect at the time of filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles applied on a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, and fairly present in all material respects the financial position of the Company and its consolidated subsidiaries as of and for the dates thereof and the results of operations and cash flows for the periods then ended, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. All material agreements to which the Company is a party or to which the property or assets of the Company are subject are included as part of or specifically identified in the SEC Reports. The Company SEC Reports included all certificates required to be included therein pursuant to Sections 302 and 906 of the Sarbanes-Oxley Act of 2002, as amended, and the rules and regulations promulgated thereunder (“SOX”), and the internal control report and attestation of the Company’s outside auditors to the extent required by Section 404 of SOX. As of the date of this Agreement, there are no outstanding or unresolved comments in the comment letters received from the SEC staff with respect to the Company SEC Documents. None of the SEC Reports is the subject of an SEC review.

(i)

Material Changes; Undisclosed Events, Liabilities or Developments. Since the date of the latest audited financial statements included within the SEC Reports, except as disclosed in a subsequent SEC Report filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities required to be reflected in the Company’s financial statements pursuant to GAAP or disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock, except as contemplated by the Transaction Documents, and (v) the Company has not issued any equity securities to any executive officer, director or Affiliate, except pursuant to an Equity Incentive Plan. The Company does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition that would be required to be disclosed by the Company that has not been disclosed.

(j)

Litigation. Except as disclosed in the Company’s SEC Reports, there is no action, suit, inquiry, notice of violation, proceeding (including any partial proceeding such as a deposition) or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of any of the Transaction Documents or the Shares or (ii) could, if there were an unfavorable decision, have or reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor any director or executive officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or executive officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

7

(k)

Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company, and neither the Company or any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

(l)

Compliance. Except as described in schedule 3.1 (d) of the Disclosure Letter, neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any order of any court, arbitrator or governmental body, or (iii) is or has been in violation of any statute, rule or regulation of any governmental authority, including without limitation all foreign, federal, state and local laws applicable to its business and all such laws that affect the environment, except in each case as would not have or reasonably be expected to result in a Material Adverse Effect.

(m)

Regulatory Permits. The Company and the Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state, local or foreign regulatory authorities necessary to conduct their respective businesses as described in the SEC Reports, except where the failure to possess such permits could not have or reasonably be expected to result in a Material Adverse Effect (“Material Permits”), and neither the Company nor any Subsidiary has received any notice of proceedings relating to the revocation or modification of any Material Permit.

(n)

Title to Assets. The Company and the Subsidiaries have good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens (i) that do not materially affect the value of such property, (ii) that do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties, and (iii) in favor of Prides Crossing Capital Funding, LP granted in connection with entering into the Amended and Restated Loan, Pledge and Security Agreement on December 5, 2013 and disclosed in the SEC Reports. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases with which the Company and the Subsidiaries are in compliance in all material respects. The Company does not own any real property.

(o)

Patents and Trademarks. The Company and the Subsidiaries have, or have rights to use, all patents, patent applications, trademarks, trademark applications, service marks, trade names, trade secrets, inventions, copyrights, licenses and other intellectual property rights and similar rights necessary or material for use in connection with their respective businesses as described in the SEC Reports (collectively, the “Intellectual Property Rights”). To the Company’s knowledge, the conduct of the Company’s and any Subsidiary’s businesses will not conflict in any material respects with any intellectual property rights of others. Except as disclosed in the SEC Reports, neither the Company nor any Subsidiary has received a notice (written or otherwise) that the Intellectual Property Rights used by the Company or any Subsidiary violates or infringes upon the rights of any Person. To the knowledge of the Company, all Intellectual Property Rights are enforceable and valid and there is no existing infringement by another Person of any of the Intellectual Property Rights. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their intellectual properties.

(p)

Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are customary in the businesses in which the Company and the Subsidiaries are engaged Neither the Company nor any Subsidiary has any reason to believe that it will not be able to renew its existing insurance coverage as and when such coverage expires or to obtain similar coverage from similar insurers as may be necessary to continue its business without a significant increase in cost.

8

(q)

Transactions With Affiliates and Employees. Except as set forth in the SEC Reports, Transaction Documents or Credit Agreements, none of the executive officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, executive officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any executive officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of $10,000 other than for (i) payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and (iii) other employee benefits, including stock option agreements and restricted stock unit agreements under any Equity Incentive Plan.

(r)

Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents. The Purchaser shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by the Transaction Documents.

(s)

Private Placement. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchaser as contemplated hereby.

(t)

Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

(u)

Takeover Laws. All the action necessary to ensure that the requirements and restrictions set forth in Chapters 110C, 110D and 110F of the MGL do not apply to this Agreement and the acquisition of Shares hereunder have been taken, and (i) the provisions of Chapters 110C, 110D and 110F of the MGL shall not apply to this Agreement and the acquisition of Shares hereunder, (ii) no restrictive provision of any applicable anti-over provision in the Company’s Articles of Organization or Amended and Restated By-laws applies to this Agreement or the acquisition of Shares hereunder, and (iii) to the knowledge of the Company, no other state takeover law would otherwise apply to this Agreement and the transactions contemplated by this Agreement.

(v)

No Integrated Offering. Assuming the accuracy of the Purchaser’s representations and warranties set forth in Section 3.2, neither the Company, nor any of its Affiliates, nor any Person acting on its or their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would cause this offering of the Shares to be integrated or aggregated with prior offerings by the Company for purposes of the Securities Act.

(w)

Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary has accurately and timely filed all federal, state and foreign income and franchise tax returns, reports and declarations required by any jurisdiction to which it is subject, and has paid or accrued all taxes shown as due thereon, and there is no tax deficiency in any material amount which has been asserted or threatened against the Company or any Subsidiary.

(x)

No General Solicitation. Neither the Company nor any person acting on behalf of the Company has offered or sold any of the Shares by any form of general solicitation or general advertising. The Company has offered the Shares for sale only to the Purchaser and certain other “accredited investors” within the meaning of Rule 501 under the Securities Act.

(y)

Foreign Corrupt Practices. Neither the Company, nor to the knowledge of the Company, any agent or other person acting on behalf of the Company, has (i) directly or indirectly, used any funds for unlawful contributions, gifts, entertainment or other unlawful expenses related to foreign or domestic political activity, (ii) made any unlawful payment to foreign or domestic government officials or employees or to any foreign or domestic political parties or campaigns from corporate funds, (iii) failed to disclose fully any contribution made by the Company (or made by any person acting on its behalf of which the Company is aware) which is in violation of law, or (iv) violated in any material respect any provision of the Foreign Corrupt Practices Act of 1977, as amended.

(z)

No Disagreements with Accountants. There are no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the independent registered public accounting firm formerly or presently employed by the Company and the Company’s outstanding balance with respect to any fees owed to such accounting firm is within the Company’s normal payment terms.

9

(aa)

Acknowledgment Regarding Purchaser’s Purchase of Shares. The Company acknowledges that the Purchaser is not acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect to the Transaction Documents. The Company represents to the Purchaser that the Company’s decision to enter into this Agreement and the other Transaction Documents has been based solely on the independent evaluation of the transactions contemplated hereby by the Company and its representatives.

(bb)

Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or, paid any compensation for soliciting purchases of, any of the Shares, or (iii) paid or agreed to pay to any Person any compensation for soliciting another to purchase any other securities of the Company.

(cc)

Stock Options and 409A Compliance. With respect to stock options issued pursuant to the Company’s Equity Incentive Plan(s) (i) each stock option designated by the Company at the time of grant as an “incentive stock option” under Section 422 of the Code so qualifies, (ii) each grant of a stock option was duly authorized no later than the date on which the grant of such stock option was by its terms to be effective (the “Grant Date”) by all necessary corporate action, including, as applicable, approval by the board of directors of the Company (or a duly constituted and authorized committee thereof) and any required stockholder approval by the necessary number of votes or written consents, (iii) each such grant was made in accordance with the material terms of an Equity Incentive Plan, the Securities Act and all other applicable laws and regulatory rules or requirements, and (iv) each such grant was or has now been properly accounted for in accordance with GAAP in the financial statements (including the related notes) of the Company and disclosed in the Company’s filings with the Commission in accordance with the Exchange Act and all other applicable laws, except, in the cases of clauses (i), (ii), (iii) and (iv), for any such failure, violation or default that would not be material to the Company and its subsidiaries taken as a whole. The Company believes in good faith that any “nonqualified deferred compensation plan” (as such term is defined under Section 409A(d)(1) of the Code and the guidance thereunder) under which the Company makes, is obligated to make or promises to make, payments (each, a “409A Plan”) complies in all material respects, in both form and operation, with the requirements of Section 409A of the Code and the guidance thereunder. To the knowledge of the Company, no payment to be made under any 409A Plan is, or will be, subject to the penalties of Section 409A(a)(1) of the Code.

(dd)

Material Contracts. For purposes of this Agreement, “Company Material Contracts” shall mean: (i) any Contract relating to indebtedness for borrowed money, any financial guaranty or any capital lease in excess of $50,000; (ii) any Contract that purports to limit the ability of the Company or any of its Subsidiaries to engage or compete in any business line or compete with any person or operate in any geographic area; (iii) any Contract that involves any exchange traded, over-the-counter or other swap, cap, floor, collar, futures contract, forward contract, option or any other derivative financial instrument; (iv) any Contract that involved expenditures or receipts by the Company or any of its Subsidiaries of more than $100,000 in the last fiscal year or that is expected to involve expenditures or receipts by the Company or any of its Subsidiaries of more than $100,000 in the next fiscal year; (v) any Contract that involved, since June 1, 2007, the acquisition or disposition, directly or indirectly (by merger or otherwise), of assets or capital stock or other equity interests of any person (other than acquisitions or dispositions of assets in the ordinary course of business, including acquisitions and dispositions of inventory) and any acquisition or disposition Contract pursuant to which the Company or any of its Subsidiaries has continuing indemnification, “earn-out” or other contingent payment obligations; (vi) any Contract with any director, officer or employee of the Company or any of its Subsidiaries, or the spouses, relatives or affiliates (excluding any Contract solely among the Company and its Subsidiaries) of such persons, as applicable, including any Contract (x) to employ, terminate, indemnify or reimburse any present or former directors, officers or other employees and any Contract with respect to severance of, or a release of claims against the Company or its Subsidiaries by, any present or former directors, officers or other employees, or (y) that will result in the payment by, or the creation of any commitment or obligation (absolute or contingent, matured or unmatured) to pay on behalf of the Company, any of its Subsidiaries or any affiliate of the Company, any severance, termination, “golden parachute”, transaction bonus, finder’s fee or other similar payments to any present or former director, officer or employee following termination of employment or otherwise as a result of the consummation of the transactions contemplated hereby; (vii) any Contract that by its terms limits the payment of dividends or other distributions by the Company or any of its Subsidiaries; (viii) any material joint venture or partnership Contract; (ix) any Contract that purports to limit the ability of the Company or any of its Subsidiaries to own, operate, sell, transfer, pledge or otherwise dispose of any material amount of assets or business; (x) any material Contract related to Company Intellectual Property Rights; (xi) any Contract pursuant to which any material payment or performance obligation of the Company or any of its Subsidiaries would or could be accelerated, or any material right of or benefit to the Company or any of its Subsidiaries would terminate or would become subject to termination, amendment, renegotiation or cancellation, in each case as a result of the execution of this Agreement or the consummation of any of the transactions contemplated hereby; and (xii) any Contract of the type required to be filed with the SEC in any periodic report pursuant to Item 601(b)(10) of Regulation S-K. 

10

Except as disclosed in schedule 3.1 (d), as of the Closing Date, neither the Company nor any Subsidiary of the Company nor, to the knowledge of the Company, any other party, is in material breach of or material default under the terms of any Company Material Contract. Each Company Material Contract is a legal, valid and binding obligation of the Company or the Subsidiary of the Company which is party thereto and, to the knowledge of the Company, of each other party thereto, and is in full force and effect, and enforceable against the Company or a Subsidiary and, to the knowledge of the Company, of each other party thereto, in accordance with its terms, subject to the effect of any applicable bankruptcy, insolvency (including all laws relating to fraudulent transfers), reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to the effect of general principles of equity. None of the Company or any of its Subsidiaries has received any written claim of default under any Company Material Contract or any written notice of an intention to, and to the knowledge of the Company, no other party to a Company Material Contract intends to, terminate, not renew or challenge the validity or enforceability of any Company Material Contract (including as a result of the execution and performance of this Agreement) and, to the Company’s knowledge, no event has occurred which would result in a breach or violation of, or a default under, any Company Material Contract (in each case, with or without notice or lapse of time or both).

(ee)

Environmental Matters. Except in each case for such matters that would not reasonably be expected to have a Material Adverse Effect: (i) to the knowledge of the Company, the Company and its Subsidiaries have complied with all applicable Environmental Laws, (ii) to the knowledge of the Company, the Company and its Subsidiaries possess all permits, licenses, registrations, identification numbers, authorizations and approvals required under applicable Environmental Laws for the operation of the business as presently conducted, (iii) neither the Company nor any of its Subsidiaries has received any written claim or notice of any violation or alleged violation of any applicable Environmental Law or concerning any actual or alleged liability of the Company or any of its Subsidiaries arising under or pursuant to any Environmental Law and (iv) there are no writs, injunctions, decrees, orders or judgments outstanding, or any Actions pending or, to the knowledge of the Company, threatened, concerning noncompliance by, or actual or potential liability of, the Company or any Subsidiary with any Environmental Law.

(ff)

Disclosure. All disclosure furnished by or on behalf of the Company to the Purchaser regarding the Company, its business and the transactions contemplated hereby, including the Disclosure Letter to this Agreement, is true and correct and does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein, in light of the circumstances under which they were made, not misleading. 

3.2

Representations and Warranties of the Purchaser. The Purchaser hereby represents and warrants as of the date hereof and as of the Closing Date to the Company as follows:

(a)

Organization; Authority. Such Purchaser is a natural person or an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with full right, corporate or partnership power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents and otherwise to carry out its obligations hereunder and thereunder. The execution, delivery and performance by such Purchaser of the transactions contemplated by this Agreement have been duly authorized by all necessary corporate or similar action, as may be applicable, on the part of such Purchaser. Each Transaction Document to which it is a party has been duly executed by such Purchaser, and when delivered by such Purchaser in accordance with the terms hereof, will constitute the valid and legally binding obligation of such Purchaser, enforceable against it in accordance with its terms, except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

(b)

Own Account; No Registration Rights. Such Purchaser understands that the Shares are “restricted securities” and have not been registered under the Securities Act or any applicable state or other securities law and is acquiring the Shares as principal for its own account and not with a view to or for distributing or reselling such Shares or any part thereof in violation of the Securities Act or any applicable state or other securities law, has no present intention of distributing any of such Shares in violation of the Securities Act or any applicable state or other securities law and has no direct or indirect arrangement or understandings with any other persons to distribute or regarding the distribution of such Shares (this representation and warranty not limiting such Purchaser’s right to sell the Shares pursuant to the Registration Statement or otherwise in compliance with applicable federal and state securities laws) in violation of the Securities Act or any applicable state or other securities law. Such Purchaser is acquiring the Shares hereunder in the ordinary course of its business.

11

(c)

Purchaser Status. At the time such Purchaser was offered the Shares, it was, and at the date hereof it is an “accredited investor” as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7) or (a)(8) under the Securities Act. 

(d)

Experience of Such Purchaser. Such Purchaser, either alone or together with its representatives, has such knowledge, sophistication and experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Shares, and has so evaluated the merits and risks of such investment. Such Purchaser is able to bear the economic risk of an investment in the Shares and, at the present time, is able to afford a complete loss of such investment.

(e)

General Solicitation. Such Purchaser is not purchasing the Shares as a result of any advertisement, article, notice or other communication regarding the Shares published in any newspaper, magazine or similar media or broadcast over television or radio or presented at any seminar or any other general solicitation or general advertisement.

(f)

Provision of Information. Such Purchaser has been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the Shares and the finances, operations and business of the Company; and (ii) the opportunity to request such additional information which the Company possesses or can acquire without unreasonable effort or expense.

(g)

Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by such Purchaser to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by the Transaction Documents.

(h)

Acknowledgement. The Purchaser acknowledges that the Company has relied upon the representations and warranties of the Purchaser set forth in Section 3.2 in its determination that no registration under the Securities Act is required for the offer and sale of the Shares by the Company to the Purchaser as contemplated by this Agreement.

ARTICLE IV.

OTHER AGREEMENTS OF THE PARTIES

4.1

Purchaser Put Right. During the ninety day period immediately following the three year anniversary of the Closing Date (the “Repurchase Period”), Purchaser may exercise a right (the “Purchaser Put Right”) to transfer all right, title and interest of Purchaser in, to and under some or all of the Shares back to the Company, in consideration for a price equal to $7.00 per Share (the “Repurchase Price”). Purchaser may exercise the Purchaser Put Right by providing written notice (the “Repurchase Notice”) to the Company prior to the expiration of the Repurchase Period that states:

(a)

the number of Shares to be repurchased by the Company;

(b)

a date, not fewer than ten Business Days from the date of the Repurchase Notice, to transfer the Shares to the Company in exchange for the Repurchase Price (the “Repurchase Date”);

(c)

the Purchaser’s payment instructions; and

(d)

that such Shares shall be repurchased as of the Repurchase Date pursuant to the terms of this Agreement.

On the later of the Repurchase Date or the date the Company receives from the Purchaser the Shares subject to repurchase, the Company shall pay to Purchaser the Repurchase Price, in immediately available funds and in accordance with the payment instructions provided in the Repurchase Notice. 

4.3

Failure to Honor Purchaser Put Right. In the event the Company fails to honor, in whole or in part, its payment obligations under the Purchaser Put Right described above, the unpaid portion of the amount due shall be evidenced by a secured demand promissory note issued by the Company to each applicable Purchaser bearing interest at an annual rate of 20%, which shall be secured by a lien on all of the assets of the Company pursuant to a security agreement. The Company shall take all reasonable efforts to promptly issue and deliver such note(s) and a security agreement in favor of the applicable Purchasers, which shall be in form and substance satisfactory to the Company and the Purchasers. Upon request of the Company’s then current lenders, the Purchasers shall execute a subordination agreement in favor of the Company’s then current lenders, which shall be in form and substance satisfactory to such lenders and Purchasers.

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4.4

Transfer Restrictions.

(a)

The Shares may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of Shares, other than pursuant to an effective registration statement, the Company may require the transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer does not require registration of such transferred Shares under the Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement. In the event whereby Purchaser sells the Shares the Purchase Put Right shall immediately terminate.

(b)

The Purchaser acknowledges that the Shares have not been registered under the Securities Act, and that there are no registration rights with respect to the Shares, and agrees to the following restrictive notation on any book-entry account or imprinting on any physical certificate, so long as is required by this Section 4.3, of a legend on any of the Shares in the following form:

THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT WITH A REGISTERED BROKER-DEALER OR OTHER LOAN WITH A FINANCIAL INSTITUTION THAT IS AN “ACCREDITED INVESTOR” AS DEFINED IN RULE 501(a) UNDER THE SECURITIES ACT OR OTHER LOAN SECURED BY SUCH SECURITIES.

(c)

The Company acknowledges and agrees that the Purchaser may from time to time pledge pursuant to a bona fide margin agreement with a registered broker-dealer or grant a security interest in some or all of the Shares to a financial institution that is an “accredited investor” as defined in Rule 501(a) under the Securities Act and who agrees to be bound by the provisions of this Agreement and, if required under the terms of such arrangement, such Purchaser may transfer pledged or secured Shares to the pledgees or secured parties. Such a pledge or transfer would not be subject to approval of the Company and no legal opinion of legal counsel of the pledgee, secured party or pledgor shall be required in connection therewith. Further, no notice shall be required of such pledge. At the appropriate Purchaser’s expense, the Company will execute and deliver such reasonable documentation as a pledgee or secured party of Shares may reasonably request in connection with a pledge or transfer of the Shares.

(d)

Certificates evidencing the Shares shall not contain any legend (including the legend set forth in Section 4.3(b)), (i) following any sale of such Shares pursuant to Rule 144, or (ii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations and pronouncements issued by the staff of the Commission). The Company agrees that at such time as such legend is no longer required under this Section 4.3(d), it will, no later than 3 Business Days following the delivery by a Purchaser to the Company or the Transfer Agent of a certificate representing Shares issued with a restrictive legend, deliver or cause to be delivered to such Purchaser a certificate representing such Shares that is free from all restrictive and other legends. Notwithstanding the foregoing, the Company shall not be required to remove any legends until all Shares represented by a single certificate are no longer subject to restrictions. If only a portion of the Shares represented by any single certificate are subject to restrictions, the holder of the certificate may request, or the Company may require, that such certificate be cancelled and two new certificates be issued. One certificate shall represent, and be in the amount of, Shares not subject to restrictions and shall bear no legend and the second certificate shall represent, and be in the amount of, Shares subject to restrictions and shall bear an appropriate legend. The Company may not make any notation on its records or give instructions to the Transfer Agent that enlarge the restrictions on transfer set forth in this Section. Certificates for Shares subject to legend removal hereunder shall be transmitted by the Transfer Agent to the Purchaser by crediting the account of the Purchaser’s prime broker with the Depository Trust Company System.

(e)

The Purchaser agrees that the removal of the restrictive legend from certificates representing Shares as set forth in this Section 4.3 is predicated upon the Company’s reliance that the Purchaser will sell any Shares pursuant to either the registration requirements of the Securities Act, including any applicable prospectus delivery requirements, or an exemption therefrom, and that if Shares are sold pursuant to a registration statement, they will be sold in compliance with the plan of distribution set forth therein.

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4.5

Furnishing of Information. As long as the Purchaser owns Shares and the Company remains subject to the requirements of the Exchange Act, the Company covenants to timely file (or obtain extensions in respect thereof and file within the applicable grace period) all reports required to be filed by the Company after the date hereof pursuant to the Exchange Act. As long as the Purchaser owns Shares, if the Company is not required to file reports pursuant to the Exchange Act, it will prepare and furnish to the Purchaser and make publicly available in accordance with Rule 144(c) such information as is required for the Purchaser to sell the Shares under Rule 144. The Company further covenants that it will take such further action as any holder of Shares may reasonably request, to the extent required from time to time to enable such Person to sell such Shares without registration under the Securities Act within the requirements of the exemption provided by Rule 144.

4.6

Integration. The Company shall not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any security (as defined in Section 2 of the Securities Act) that would be integrated with the offer or sale of the Shares in a manner that would require the registration under the Securities Act of the sale of the Shares to the Purchaser.

4.7

Publicity. The Company and the Purchaser’s Representative shall consult with each other in issuing any other press releases with respect to the transactions contemplated hereby, and neither the Company nor the Purchaser shall issue any such press release or otherwise make any such public statement without the prior consent of the Company, with respect to any press release of the Purchaser, or without the prior consent of Purchaser’s Representative, with respect to any press release of the Company, which consent shall not unreasonably be withheld or delayed, except if such disclosure is required by law, in which case the disclosing party shall promptly provide the other party with prior notice of such public statement or communication. Notwithstanding the foregoing, the Company shall not publicly disclose the name of the Purchaser, or include the name of the Purchaser in any filing with the Commission or any regulatory agency, without the prior written consent of Purchaser’s Representative, except as required by federal securities law in connection any filing required by the Commission.

4.8

Reimbursement. If the Purchaser becomes involved in any capacity in any Proceeding by or against any Person who is a stockholder of the Company (except as a result of sales, pledges, margin sales and similar transactions by such Purchaser to or with any other stockholder), solely as a result of such Purchaser’s acquisition of the Shares under this Agreement, the Company will reimburse such Purchaser for its reasonable legal and other expenses (including the cost of any investigation preparation and travel in connection therewith) incurred in connection therewith, as such expenses are incurred. The reimbursement obligations of the Company under this paragraph shall be in addition to any liability which the Company may otherwise have, shall extend upon the same terms and conditions to any Affiliates of the Purchaser who are actually named in such Action, proceeding or investigation, and partners, directors, agents, employees and controlling persons (if any), as the case may be, of the Purchaser and any such Affiliate, and shall be binding upon and inure to the benefit of any successors, assigns, heirs and personal representatives of the Company, the Purchaser and any such Affiliate and any such Person. The Company also agrees that neither the Purchaser nor any such Affiliates, partners, directors, agents, employees or controlling persons shall have any liability to the Company or any Person asserting claims on behalf of or in right of the Company solely as a result of acquiring the Shares under this Agreement, except if such claim arises primarily from a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance.

14

4.9

Indemnification of Purchaser. Subject to the provisions of this Section 4.8, the Company will indemnify and hold the Purchaser and its directors, officers, shareholders, members, partners, employees and agents (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title), each Person who controls such Purchaser (within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act), and the directors, officers, shareholders, agents, members, partners or employees (and any other Persons with a functionally equivalent role of a Person holding such titles notwithstanding a lack of such title or any other title) of such controlling persons (each, a “Purchaser Party”) harmless from any and all losses, liabilities, obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any such Purchaser Party may suffer or incur as a result of or relating to (a) any breach of any of the representations, warranties, covenants or agreements made by the Company in this Agreement or in the other Transaction Documents or (b) any Action instituted against a Purchaser, or any of them or their respective Affiliates, by any stockholder of the Company who is not an Affiliate of such Purchaser, with respect to any of the transactions contemplated by the Transaction Documents (unless such Action is based upon a breach of such Purchaser’s representations, warranties or covenants under the Transaction Documents or any agreements or understandings such Purchaser may have with any such stockholder or any violations by the Purchaser of state or federal securities laws or any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance). If any Action shall be brought against the Purchaser Party in respect of which indemnity may be sought pursuant to this Agreement, such Purchaser Party shall promptly notify the Company in writing, and the Company shall have the right to assume the defense thereof with counsel of its own choosing reasonably acceptable to the Purchaser Party. The Purchaser Party shall have the right to employ separate counsel in any such Action and participate in the defense thereof, but the fees and expenses of such counsel shall be at the expense of such Purchaser Party except to the extent that (i) the employment thereof has been specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable period of time to assume such defense and to employ counsel or (iii) in such Action there is, in the reasonable opinion of such separate counsel, a material conflict on any material issue between the position of the Company and the position of such Purchaser Party, in which case the Company shall be responsible for the reasonable fees and expenses of no more than one such separate counsel. The Company will not be liable to the Purchaser Party under this Agreement (i) for any settlement by a Purchaser Party effected without the Company’s prior written consent, which shall not be unreasonably withheld or delayed; or (ii) to the extent, but only to the extent that a loss, claim, damage or liability is attributable to (A) the Purchaser Party’s breach of any of the representations, warranties, covenants or agreements made by such Purchaser Party in this Agreement or in the other Transaction Documents, (B) any violations by the Purchaser of state or federal securities laws or (C) any conduct by such Purchaser which constitutes fraud, gross negligence, willful misconduct or malfeasance.

4.10

Reservation of Common Stock. As of the date hereof, the Company has reserved and the Company shall continue to reserve and keep available at all times, free of preemptive rights, a sufficient number of shares of Common Stock for the purpose of enabling the Company to issue Shares pursuant to this Agreement.

4.11

Delivery of Shares After Closing. The Company shall deliver, or cause to be delivered, the respective Shares purchased by the Purchaser to such Purchaser within 3 Business Days of the Closing Date.

4.12

Form D; Blue Sky Filings. The Company agrees to timely file a Form D via EDGAR with respect to the Shares as required under Regulation D and to provide a copy thereof, promptly upon request of the Purchaser. The Company shall take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for, sale to the Purchaser at the Closing under applicable securities or “Blue Sky” laws of the states of the United States, and shall provide evidence of such actions promptly upon request of the Purchaser. The Purchaser shall take all commercially reasonable actions that are reasonably requested by the Company related to, or to effectuate, the filing of a Form D or any filing required pursuant to the “Blue Sky” laws of the states of the United States which, for purposes of clarity, shall not include the payment of any fees by such Purchaser.

4.13

Investment Company. The Company shall conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

4.14

Reservation of Common Stock under Equity Incentive Plans. Immediately following the Closing, the Purchaser acknowledges that the Company will not have in place any reservation of shares of Common Stock for future issuances with respect to its Equity Incentive Plans, except for a reservation of 150,000 shares with respect to the Equity Incentive Plans that are outstanding immediately prior to the Closing.

15

ARTICLE V.

MISCELLANEOUS

5.1

Fees and Expenses. Except as expressly set forth in the Transaction Documents to the contrary, each party shall pay the fees and expenses of its advisers, counsel, accountants and other experts, if any, and all other expenses incurred by such party incident to the negotiation, preparation, execution, delivery and performance of this Agreement. The Company shall pay all Transfer Agent fees, stamp taxes and other taxes and duties levied in connection with the delivery of any Shares to the Purchaser.

5.2

Entire Agreement. The Transaction Documents, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

5.3

Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto prior to 5:30 p.m. (New York City time) on a Business Day, (b) the next Business Day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a Business Day or later than 5:30 p.m. (New York City time) on any Business Day, (c) the second Business Day following the date of mailing, if sent by U.S. nationally recognized overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The address for such notices and communications shall be as set forth on the signature pages attached hereto.

5.4

Amendments; Waivers. No provision of this Agreement may be waived or amended except in a written instrument signed by the Company and Purchaser. No waiver of any default with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right.

5.5

Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.

5.6

Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of Purchaser (other than by merger). The Purchaser may assign any or all of its rights under this Agreement to any Person to whom such Purchaser assigns or transfers any Shares, provided such transferee agrees in writing to be bound, with respect to the transferred Shares, by the provisions of the Transaction Documents that apply to the Purchaser.

5.7

No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and permitted assigns and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in Section 4.8 Indemnification of Purchaser.

5.8

Governing Law. This Agreement shall be deemed to be made in, and in all respects shall be interpreted, construed and governed by and in accordance with the internal laws of the Commonwealth of Massachusetts, without regard to the conflicts of law principles thereof that would cause the application of the laws of any jurisdiction other than the internal laws of the Commonwealth of Massachusetts. 

5.9

Jurisdiction; Enforcement; Remedies. Each of the parties hereto (i) irrevocably consents to submit itself to the personal jurisdiction of the courts of the Commonwealth of Massachusetts located in Suffolk County, and of the United States District Courts for the District of Massachusetts, in the event any dispute arises out of this Agreement or any of the transactions contemplated by this Agreement, (ii) agrees that it will not attempt to deny or defeat such personal jurisdiction by motion or other request for leave from any such court, (iii) agrees that it will not bring any Action relating to this Agreement or any of the transactions contemplated by this Agreement in any court other than the courts of the Commonwealth of Massachusetts located in Suffolk County, and of the United States District Courts for the District of Massachusetts and (iv) consents to service being made through the notice procedures set forth in Section 5.3. The parties hereby agree that service of any process, summons, notice or document by registered mail to the respective addresses set forth in Section 5.3 shall be effective service of process for any suit or proceeding in connection with this Agreement or the transactions contemplated hereby.

16

5.10

Survival of Representations and Warranties. The representations and warranties contained herein shall survive the Closing and the delivery of the Shares until the 2 year anniversary of the Closing Date. 

5.11

Execution. This Agreement may be executed in two or more counterparts, all of which when taken together shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party, it being understood that both parties need not sign the same counterpart. In the event that any signature is delivered by facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature page were an original thereof.

5.12

Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable.

5.13

Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) any of the other Transaction Documents, whenever the Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

5.14

Replacement of Shares. If any certificate or instrument evidencing any Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause to be issued in exchange and substitution for and upon cancellation thereof (in the case of mutilation), or in lieu of and substitution therefore, a new certificate or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction. The applicant for a new certificate or instrument under such circumstances shall also pay any reasonable third-party costs (including customary indemnity) associated with the issuance of such replacement Shares.

5.15

Remedies. In addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, each of the Purchaser and the Company will be entitled to specific performance under the Transaction Documents. The parties agree that monetary damages may not be adequate compensation for any loss incurred by reason of any breach of obligations contained in the Transaction Documents and hereby agree to waive and not to assert in any Action for specific performance of any such obligation the defense that a remedy at law would be adequate.

5.16

Liquidated Damages. The Company’s obligations to pay any partial liquidated damages or other amounts owing under the Transaction Documents is a continuing obligation of the Company and shall not terminate until all unpaid partial liquidated damages and other amounts have been paid notwithstanding the fact that the instrument or security pursuant to which such partial liquidated damages or other amounts are due and payable shall have been canceled.

5.17

Construction. The parties agree that each of them and/or their respective counsel has reviewed and had an opportunity to revise the Transaction Documents and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of the Transaction Documents or any amendments hereto.

(Signature Pages Follow)

17

		
	SIGNATURE PAGE

	Date Signed: June 20, 2014

PURCHASER:

			
	Number of Shares:

	 
	110,000

	 
	 
	 

	Multiplied by Per Share Purchase Price: 

	x

	$5.00

	 
	 
	 

	Equals Subscription Amount: 

	=

	$550,000

			
	/s/ Joseph P Daly

	 
	 

	Signature

	 
	Second Signature (if purchasing jointly)

			
	Joseph P Daly

	 
	 

	Signature

	 
	Second Signature

COMPANY:

SofTech, Inc.

Joseph P. Mullaney

Chief Executive Officer

	
	/s/ Joseph Mullaney

	Signature

	
	Joseph Mullaney

	Signature

[Signature Page – Securities Purchase Agreement]

18

ANNEX A

Purchaser’s Wire Instructions

		
	Name:

	 

	Bank:

	 

	Account name:

	 

	Routing number:

	 

	Account number:

	 

19

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