Document:

Exhibit 10.1

 

EXECUTION VERSION

 

PURCHASE AND SALE AGREEMENT

 

BETWEEN

 

CrownRock, L.P.,

 

a Delaware limited partnership,

 

AS SELLER

 

AND

 

BREITBURN OPERATING L.P.,

 

a Delaware limited partnership

 

AS BUYER

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	Article I  Assets	1
	 	 	 
	Section 1.01	Agreement to Sell and Purchase	1
	Section 1.02	Assets	1
	Section 1.03	Excluded Assets	3
	 	 	 
	Article II  Purchase Price	4
	 	 	 
	Section 2.01	Purchase Price	4
	Section 2.02	Deposit	4
	Section 2.03	Allocated Values	4
	Section 2.04	Effective Time	4
	 	 	 
	Article III  Title Matters	4
	 	 	 
	Section 3.01	Examination Period	4
	Section 3.02	Defensible Title and Permitted Encumbrances	4
	Section 3.03	Title Defect	7
	Section 3.04	Notice of Title Defects	7
	Section 3.05	Remedies for Title Defects	9
	Section 3.06	Intentionally Omitted	9
	Section 3.07	Preferential Rights To Purchase	9
	Section 3.08	Consents to Assignment	10
	Section 3.09	Remedies for Title Benefits	10
	Section 3.10	Tag Along Rights	11
	 	 	 
	Article IV  Environmental Matters	12
	 	 	 
	Section 4.01	Environmental Review	12
	Section 4.02	Environmental Definitions	14
	Section 4.03	Notice of Environmental Defects	15
	Section 4.04	Remedies for Environmental Defects	15
	 	 	 
	Article V  Representations and Warranties of Seller	16
	 	 	 
	Section 5.01	Seller’s Existence	16
	Section 5.02	Legal Power	16
	Section 5.03	Execution	17
	Section 5.04	Brokers	17
	Section 5.05	Bankruptcy	17
	Section 5.06	Suits	17
	Section 5.07	Royalties	17
	Section 5.08	Taxes	17
	Section 5.09	Contracts	18
	Section 5.10	No Conflict or Violation	18
	Section 5.11	Consents; Preferential Rights	18
	Section 5.12	Compliance with Laws	18
	Section 5.13	Wells	18

 

    	(i)

    	 

    

 

	Section 5.14	Proposed Operations or Expenditures	19
	Section 5.15	Status of Seller	19
	Section 5.16	Suspense Funds	19
	Section 5.17	Imbalances	19
	Section 5.18	Seller’s Knowledge	19
	Section 5.19	Affiliate Transactions	19
	Section 5.20	Governmental Licenses	19
	Section 5.21	Tag Along Rights	20
	 	 	 
	Article VI  Representations and Warranties of Buyer	20
	 	 	 
	Section 6.01	Buyer’s Existence	20
	Section 6.02	Legal Power	20
	Section 6.03	Execution	20
	Section 6.04	Brokers	20
	Section 6.05	Bankruptcy	20
	Section 6.06	Suits	20
	Section 6.07	Qualifications	21
	Section 6.08	Investment	21
	Section 6.09	Funds	21
	 	 	 
	Article VII  Seller’s Conditions to Close	21
	 	 	 
	Section 7.01	Representations	21
	Section 7.02	Performance	21
	Section 7.03	Pending Matters	21
	Section 7.04	Purchase Price	21
	Section 7.05	Title and Environmental	21
	Section 7.06	Execution and Delivery of the Closing Documents	22
	Section 7.07	Tag Along Rights	22
	 	 	 
	Article VIII  Buyer’s Conditions to Close	22
	 	 	 
	Section 8.01	Representations	22
	Section 8.02	Performance	22
	Section 8.03	Pending Matters	22
	Section 8.04	Execution and Delivery of the Closing Documents	22
	Section 8.05	Title and Environmental	22
	Section 8.06	Letter Regarding Financial Statements	22
	Section 8.07	Transition Services Agreement	22
	Section 8.08	Concurrent Rights Agreement	23
	Section 8.09	Tag Along Rights	23
	 	 	 
	Article IX  Tax Matters	23
	 	 	 
	Section 9.01	Transfer Taxes	23
	Section 9.02	Asset Taxes	23
	Section 9.03	Purchase Price Allocation	24
	Section 9.04	Tax Cooperation	24

 

    	(ii)

    	 

    

 

	Section 9.05	754 Elections	24
	Section 9.06	Tax Definitions	24
	 	 	 
	Article X  The Closing	25
	 	 	 
	Section 10.01	Time and Place of the Closing	25
	Section 10.02	Adjustments to Purchase Price at the Closing	25
	Section 10.03	Closing Statement	27
	Section 10.04	Actions of Seller at the Closing	27
	Section 10.05	Actions of Buyer at the Closing	28
	 	 	 
	Article XI  Termination	29
	 	 	 
	Section 11.01	Right of Termination	29
	Section 11.02	Effect of Termination	29
	Section 11.03	Termination Remedies	30
	Section 11.04	Attorneys’ Fees, Etc	30
	 	 	 
	Article XII  Post Closing Obligations	31
	 	 	 
	Section 12.01	Gas Imbalances	31
	Section 12.02	Final Statement	31
	Section 12.03	Settlement of Suspense Funds	32
	Section 12.04	Financial Statements	32
	Section 12.05	Further Cooperation	32
	 	 	 
	Article XIII  Operation of the Assets	32
	 	 	 
	Section 13.01	Operations after Effective Time	32
	Section 13.02	Limitations on the Operational Obligations and Liabilities of Seller	33
	Section 13.03	No Liability of Seller	34
	Section 13.04	Operation of the Assets after the Closing	34
	Section 13.05	Casualty Loss	34
	Section 13.06	Operatorship	35
	Section 13.07	Records	35
	Section 13.08	Administrative Duties and Other Obligations	35
	Section 13.09  	Certain Wells	35
	 	 	 
	Article XIV  Obligations and Indemnification	36
	 	 	 
	Section 14.01	Retained Obligations	36
	Section 14.02	Assumed Obligations	36
	Section 14.03	Buyer’s Indemnification	37
	Section 14.04	Seller’s Indemnification	37
	Section 14.05	Notices and Defense of Indemnified Matters	38
	Section 14.06	Exclusive Remedies	38
	 	 	 
	Article XV  Limitations on Representations and Warranties	38
	 	 	 
	Section 15.01  	Disclaimers of Representations and Warranties	38
	Section 15.02	Independent Investigation	39

 

    	(iii)

    	 

    

 

	Section 15.03	Survival	39
	 	 	 
	Article XVI  Dispute Resolution	39
	 	 	 
	Section 16.01	General	39
	Section 16.02	Senior Management	40
	Section 16.03	Dispute by Independent Expert	40
	Section 16.04	Limitation on Arbitration	41
	 	 	 
	Article XVII  Miscellaneous	41
	 	 	 
	Section 17.01	Names	41
	Section 17.02	Expenses	41
	Section 17.03	Document Retention	41
	Section 17.04	Entire Agreement	41
	Section 17.05	Waiver	41
	Section 17.06	Publicity	41
	Section 17.07	Construction	42
	Section 17.08	No Third Party Beneficiaries	42
	Section 17.09	Assignment	42
	Section 17.10	Governing Law	42
	Section 17.11	Notices	42
	Section 17.12	Severability	43
	Section 17.13	Time of the Essence	43
	Section 17.14	Counterpart Execution	43
	Section 17.15	Jury Trial Waiver	43
	Section 17.16	Financial Statements	44

 

	EXHIBITS AND SCHEDULES
	 
	Exhibit A – Subject Interests (Listing of Leases)
	Exhibit A-1 – Mineral Interest
	Exhibit B – Wells and Interests
	Exhibit C – Allocated Values
	Exhibit D – Assignment and Bill of Sale
	Exhibit E – Mineral Deed
	Exhibit F – Transition Services Agreement
	Exhibit G – Concurrent Rights Agreement
	Exhibit H – Tag Along PSA
	 
	Schedule 1.02(d) – Well Equipment
	Schedule 3.02(d)(i) – Permitted Contracts
	Schedule 3.07 – Preferential Rights
	Schedule 3.10 – Tag Along Rights
	Schedule 5.06 – Suits
	Schedule 5.07 – Royalties in Suspense
	Schedule 5.08(b) – Tax Partnerships
	Schedule 5.08(c) – Tax Liens

 

    	(iv)

    	 

    

 

Schedule 5.09 – Material Contracts

Schedule 5.11 – Consents

Schedule 5.12 – Compliance with Laws

Schedule 5.13 – Wells

Schedule 5.14 – Proposed Operations
or Expenditures

Schedule 5.20 – Permits

Schedule 12.01 – Imbalances

Schedule 13.09 – Wells to be Drilled
and Completed by Seller

 

    	(v)

    	 

    

 

DEFINITIONS

	TERM	 	SECTION
	Agreed Imbalance	 	12.01
	Agreement	 	Preamble
	Allocated Values	 	2.02
	Asset Taxes	 	9.06(a)
	Assets	 	1.02
	Assignment	 	10.04(a)
	Assumed Obligations	 	14.02
	Audit Firm	 	17.16(b)
	Breaching Party	 	11.03
	Buyer	 	Preamble
	Buyer Indemnitees	 	14.04
	Buyer’s Environmental Consultant	 	4.01(a)
	Buyer’s Environmental Review	 	4.01(a)
	CERCLA	 	4.02(c)
	Closing	 	10.01
	Closing Date	 	10.01
	Concurrent Rights Agreement	 	8.08
	Contracts	 	1.02(e)
	Defensible Title	 	3.02
	Disputes	 	16.01
	Documents	 	17.03
	Easements	 	1.02(c)
	Effective Time	 	2.03
	Environmental Defect	 	4.02(a)
	Environmental Defect Value	 	4.02(d)
	Environmental Information	 	4.01(b)
	Environmental Laws	 	4.02(c)
	Examination Period	 	3.01
	Exchange Act	 	17.16(a)
	Excluded Assets	 	1.03
	Final Settlement Date	 	12.02(a)
	Final Statement	 	12.02(a)
	Financial Statements	 	17.16(a)
	Governmental Authority	 	4.02(b)
	Hydrocarbons	 	1.02(d)
	Independent Expert	 	16.03(a)
	Leases	 	1.02(a)
	Losses	 	14.03
	Material Contracts	 	5.09
	Mineral Deed	 	10.04(i)
	Mineral Interest	 	1.02(a)
	Net Revenue Interest	 	3.02(a)

 

    	(i)

    	 

    

 

	TERM	 	SECTION
	NORM	 	4.01(c)
	Notice of Disagreement	 	12.02(a)
	Party or Parties	 	Preamble
	Performing Party	 	11.03
	Permitted Encumbrances	 	3.02(d)
	Person	 	5.09
	Personal Property	 	1.02(d)
	Preference Rights	 	3.07
	Property Expenses	 	10.02(c)
	Purchase Price	 	2.01
	Purchase Price Adjustments	 	10.02(d)
	Purchase Price Allocation	 	9.03
	Records	 	1.02(f)
	Retained Obligations	 	14.01
	SEC	 	17.16(a)
	Securities Act	 	17.16(a)
	Seller	 	Preamble
	Seller Indemnitees	 	14.03
	Seller Permits	 	5.20
	Seller’s knowledge	 	5.18
	Specified Retained Obligations	 	14.01
	Statement	 	10.03
	Straddle Period	 	9.06(b)
	Subject Interest(s)	 	1.02(a)
	Tag Along Assets	 	3.10(a)
	Tag Along PSA	 	3.10(a)
	Tag Along Rights	 	3.10(a)
	Tax or Taxes	 	9.06(c)
	Tax Return	 	9.06(d)
	Termination of Participation Agreement	 	3.06
	Third Party	 	1.02(g)
	Third Party Confidential Data	 	1.03
	Title Benefit	 	3.09(a)
	Title Defect	 	3.03
	Title Defect Value	 	3.04(c)
	Transfer Taxes	 	9.01
	Transition Services Agreement	 	8.07
	Wells	 	1.02(d)
	Working Interest	 	3.02(b)

 

    	(ii)

    	 

    

 

PURCHASE AND SALE AGREEMENT

 

This Purchase and Sale
Agreement (this “Agreement”) is made and entered into this 12th day of December, 2013, by and between
CrownRock, L.P., a Delaware limited partnership (the “Seller”), and BreitBurn Operating L.P., a Delaware limited
partnership (the “Buyer”). Buyer and Seller are collectively referred to herein as the “Parties”
and are sometimes referred to individually as a “Party.”

 

WITNESSETH:

 

WHEREAS, Seller is
willing to sell to Buyer, and Buyer is willing to purchase from Seller, the Assets (as defined in Section 1.02), all upon
the terms and conditions hereinafter set forth;

 

NOW, THEREFORE, in
consideration of the mutual benefits derived and to be derived from this Agreement by each Party, Seller and Buyer hereby agree
as follows:

 

Article
I

Assets

 

Section 1.01    Agreement
to Sell and Purchase. Subject to and in accordance with the terms and conditions of this Agreement, (a) Buyer agrees to purchase
the Assets from Seller, and Seller agrees to sell the Assets to Buyer, effective as of the Effective Time (as defined in Section 2.03),
and (b) Buyer agrees to purchase the Tag Along Assets (as defined in Section 3.10), from those Third Party owners who have (i)
elected on or before December 23, 2013 to sell such Tag Along Assets to Buyer on the Closing Date (as defined in Section 10.1)
effective as of the Effective Time, (ii) signed Tag Along PSAs prior to December 23, 2013, and (iii) provided wiring instructions
to Buyer prior to December 23, 2013.

 

Section 1.02    Assets.
Subject to Section 1.03, the term “Assets” shall mean the following (less and except the Excluded Assets,
as hereinafter defined):

 

		(a)	all of Seller’s right, title and interest in and to the leasehold estates in and to the oil,
gas and mineral leases described or referred to in Exhibit A (the “Leases”) and any overriding royalty
interests in and to the lands covered by the Leases, assignments and other documents of title described or referred to in Exhibit A,
all as more specifically described in Exhibit A, and the mineral interest described on Exhibit A-1 (the “Mineral
Interest”), provided that all of the foregoing are subject to the limitations described in Exhibit A,
(as so limited, collectively, the “Subject Interests,” or singularly, a “Subject Interest”);

 

		(b)	all of Seller’s right, title and interest in and to all rights incident to the Subject Interests,
including, without limitation, all rights with respect to any pooled, communitized or unitized acreage by virtue of any Subject
Interest being a part thereof, including all Hydrocarbon (as defined in Subsection (d) of this Section 1.02)
production after the Effective Time attributable to the Subject Interests or any such pool or unit allocated to any such Subject
Interest;

 

    	(1)

    	 

    

 

		(c)	all of Seller’s right, title and interest in and to all easements, rights-of-way, surface
leases, servitudes, permits, licenses, franchises and other estates or similar rights and privileges directly related to or used
solely in connection with the Subject Interests (the “Easements”), including, without limitation, the Easements
described or referred to in Exhibit A;

 

		(d)	all of Seller’s (and its affiliates’) right, title and interest in and to all personal
property, equipment, fixtures, inventory and improvements located on or used in connection with the Subject Interests and the Easements
or with the production, treatment, sale, or disposal of oil, gas or other hydrocarbons (collectively, “Hydrocarbons”),
byproducts or waste produced therefrom or attributable thereto, including, without limitation, all wells located on the lands covered
by the Subject Interests or on lands with which the Subject Interests may have been pooled, communitized or unitized (whether producing,
shut in or abandoned, and whether for production, injection or disposal), including, without limitation, the wells described in
Exhibit B (the “Wells”), wellhead equipment, pumps, pumping units, flowlines, gathering systems,
piping, tanks, buildings, treatment facilities, injection facilities, disposal facilities, compression facilities, and other materials,
supplies, equipment, facilities and machinery, including (i) the central or individual batteries, (ii) the remote tanks, (iii)
the pump-off controllers, (iv) radios to transmit pump-off controller and tank information located on or about the Wells and (v)
cellular modems, accounts and associated phone numbers specifically installed for electronic alarms (the foregoing (i) through
(v) as shown on Schedule 1.02(d)) (collectively, “Personal Property”);

 

		(e)	all of Seller’s (and its affiliates’) right, title and interest in and to the extent
assignable (provided that Seller shall use commercially reasonable efforts to obtain consent to assignment to Buyer), all contracts,
agreements and other arrangements that directly relate to the Subject Interests, the Leases, the Personal Property or the Easements,
insofar only as applicable thereto, including, without limitation, production sales contracts, farmout agreements, operating agreements,
service agreements, wireless contracts and similar arrangements, excluding the Leases (collectively, the “Contracts”);

 

		(f)	all of Seller’s and its affiliates’ books, records, files, all of Seller’s right,
title and interest in and to all books muniments of title, reports and similar documents and materials, including, without limitation,
lease records, well records, and division order records, well files, title records (including abstracts of title, title opinions
and memoranda, and title curative documents related to the Assets), contracts and contract files, and correspondence that relates
to the foregoing interests in the possession of, and maintained by, Seller (or its affiliates) (collectively, the “Records”);

 

    	(2)

    	 

    

 

		(g)	all of Seller’s (and its affiliates’) right, title and interest in and to all geological
and geophysical data relating to the Subject Interests, other than such data which cannot be transferred without the consent of
(provided that Seller shall use commercially reasonable efforts to obtain such consent) or payment to any Third Party (unless
paid by Buyer). For purposes of this Agreement, “Third Party” means any person or entity, governmental or otherwise,
other than Seller or Buyer, and their respective affiliates; the term includes, but is not limited to, working interest owners,
royalty owners, lease operators, landowners, service contractors and governmental agencies; and

 

		(h)	any other improvements, fixtures, and tangible personal property presently located on the Subject
Interests and Wells and utilized in connection with the ownership or operation thereof.

 

Section 1.03   Excluded
Assets. Notwithstanding the foregoing, the Assets shall not include, and there are excepted, reserved and excluded from the
sale contemplated hereby (the following, collectively, the “Excluded Assets”): (a) all trade credits and refunds
(other than those relating to Taxes, which are governed by (e) below) and all accounts, instruments and general intangibles (as
such terms are defined in the Texas Uniform Commercial Code), attributable to the Assets with respect to any period of time prior
to the Effective Time, except to the extent relating to pre-Effective Time obligations or liabilities assumed by Buyer under this
Agreement; (b) all claims and causes of action of Seller arising from acts, omissions or events occurring prior to the Effective
Time, except to the extent relating to pre-Effective Time obligations or liabilities assumed by Buyer under this Agreement; (c)
all rights and interests of Seller (i) under any policy or agreement of insurance or indemnity, (ii) under any bond or deposit
or (iii) to any insurance or condemnation proceeds or awards arising, in each case, from acts, omissions or events, or damage to
or destruction of property, occurring prior to the Effective Time; (d) all Hydrocarbons produced from or attributable to the Subject
Interests with respect to all periods prior to the Effective Time, together with all proceeds from the sale of such Hydrocarbons;
(e) all claims of Seller for refunds of or loss carry forwards with respect to any Taxes, and refunds for amounts paid in
connection with the Assets, attributable to any period prior to the Effective Time; (f) all amounts due or payable to Seller as
adjustments to insurance premiums related to the Assets with respect to any period prior to the Effective Time; (g) all proceeds,
income or revenues (and any security or other deposits made) attributable to the Assets for any period prior to the Effective Time;
(h) all data and other information that cannot be disclosed or assigned to Buyer without the consent of or payment to any Third
Party (the “Third Party Confidential Data”); provided that, prior to the Closing, Seller shall use its
reasonable efforts to obtain waivers or consents from such Third Parties to the transfer or use of the Third Party Confidential
Data to or by Buyer, provided that Buyer pays any fees or other sums of Third Parties requisite to such transfer; (i) all
vehicles, vessels, trailers, software, computers and associated peripherals and all radio, telephone and other communications equipment,
except for any such items shown on attached Schedule 1.02(d) and/or physically attached to a Well; (j) any Contracts with
respect to which consent to assignment is required but has not been obtained; and (k) the CrownRock Easements as defined in the
Concurrent Rights Agreement attached hereto as Exhibit F.

 

    	(3)

    	 

    

  

Article
II

Purchase Price

 

Section 2.01   Purchase
Price. The total consideration for the purchase, sale and conveyance of the Assets to Buyer is Buyer’s payment to Seller
of the sum of TWO HUNDRED EIGHTY TWO MILLION, TWO HUNDRED AND THIRTY-FIVE THOUSAND DOLLARS ($282,235,000.00) (the “Purchase
Price”), as allocated and as adjusted in accordance with the provisions of this Agreement. The adjusted Purchase Price
shall be paid to Seller at the Closing (as defined in Section 10.01) by means of a completed federal funds transfer to an
account designated in writing by Seller.

 

Section 2.02   Deposit.
Within two business days of the execution of this Agreement by Buyer and Seller, Buyer shall deliver to Seller a performance guarantee
deposit in the amount of Five Million Dollars ($5,000,000.00) (the “Deposit”). The Deposit shall be paid by
Buyer to Seller by means of a completed federal funds transfer to the account of Seller, Account No. 456 000 1474,
at Union Bank of California, 1980 Saturn Street, VO3-059, Monterey Park, CA 91755, ABA Routing Number 122 000
496.

 

Section 2.03   Allocated
Values. Buyer and Seller have agreed on the allocation of values among the Assets as set forth in Exhibit C attached
hereto (the “Allocated Values”).  Seller and Buyer agree that the Allocated Values shall be used for federal
income tax purposes, for computation of any adjustments pursuant to the provisions of Article III and Article IV,
and for all other purposes incident to this Agreement.

 

Section 2.04   Effective
Time. If the transactions contemplated hereby are consummated in accordance with the terms and provisions hereof, the ownership
of the Assets shall be transferred from Seller to Buyer on the Closing Date, but effective as of 7:00 a.m. local time where the
Assets are located on December 30, 2013 (the “Effective Time”).

 

Article
III

Title Matters

 

Section 3.01   Examination
Period. Following the execution date of this Agreement until 5:00 P.M., local time in Midland, Texas on December 20, 2013 (the
“Examination Period”), Seller shall permit Buyer and/or its representatives (including Buyer’s Environmental
Consultant) to examine, at all reasonable times, in Seller’s offices, all abstracts of title, title opinions, title files,
ownership maps, lease files, contract files, assignments, division orders, operating and accounting records and agreements pertaining
to the Assets insofar as same may now be in existence and in the possession of Seller, subject to such restrictions on disclosure
as may exist under confidentiality agreements or other agreements binding on Seller or such data.

 

Section 3.02   Defensible
Title and Permitted Encumbrances. For purposes of this Agreement, the term “Defensible Title” means, with
respect to a given Asset, such ownership by Seller in such Asset during the productive life of that Asset, that, subject to and
except for the Permitted Encumbrances (as defined in Subsection (d) of this Section 3.02):

 

    	(4)

    	 

    

 

		(a)	entitles Seller to receive not less than the percentage set forth in Exhibit B as Seller’s
“Net Revenue Interest” of all Hydrocarbons produced, saved and marketed from each Well or unit as set forth
in Exhibit B, all without reduction, suspension or termination of such interest throughout the productive life of such
Well except as specifically set forth in Exhibit B;

 

		(b)	obligates Seller to bear not greater than the percentage set forth in Exhibit B as
Seller’s “Working Interest” of the costs and expenses relating to the maintenance, development and operation
of each Well or unit as set forth in Exhibit B, all without increase (unless accompanied by a corresponding increase
in Seller’s Net Revenue Interest) throughout the productive life of such Well except as specifically set forth in Exhibit B;

 

		(c)	is free and clear of all liens, encumbrances and defects in title.

 

		(d)	The term “Permitted Encumbrances” shall mean any of the following matters to
the extent the same are valid and subsisting and affect the Assets:

 

		(i)	The contracts listed on Schedule 3.02(d)(i);

 

		(ii)	any (A) undetermined or inchoate liens or charges constituting or securing the payment of expenses
that were incurred incidental to the maintenance, development, production or operation of the Assets or for the purpose of developing,
producing or processing Hydrocarbons therefrom or therein and (B) materialman’s, mechanics’, repairman’s, employees’,
contractors’, operators’ liens under joint operating agreements or other similar liens or charges for liquidated amounts
arising in the ordinary course of business which Seller has agreed to pay pursuant to the terms thereof and that are not yet due
and payable or are being contested in good faith in the ordinary course of business;

 

		(iii)	any liens for Taxes not yet delinquent or, if delinquent, that are being contested in good faith
in the ordinary course of business and which Seller has agreed to pay pursuant to the terms hereof;

 

		(iv)	the terms, conditions, restrictions, exceptions, reservations, limitations and other matters contained
in (including any liens or security interests created by law or reserved in oil and gas leases for royalty, bonus or rental, or
created to secure compliance with the terms of) the Leases and any other recorded agreements, instruments and documents that create
or reserve to Seller its interest in the Assets, to the extent the same do not reduce the Net Revenue Interests of Seller below
those set forth in Exhibit B or increase the Working Interests of Seller above those set forth in Exhibit B without
a corresponding increase in the Net Revenue Interest;

 

    	(5)

    	 

    

  

		(v)	any obligations or duties affecting the Assets to any municipality or public authority with respect
to any franchise, grant, license or permit and all applicable laws, rules, regulations and orders of any Governmental Authority
(as defined in Section 4.02(b));

 

		(vi)	any (A) easements, rights-of-way, servitudes, permits, surface leases and other rights in respect
of surface operations, pipelines, grazing, hunting, lodging, canals, ditches, reservoirs or the like and (B) easements for streets,
alleys, highways, pipelines, telephone lines, power lines, railways and other similar rights-of-way on, over or in respect of property
owned or leased by Seller or over which Seller owns rights-of-way, easements, permits or licenses, to the extent that same do not
materially interfere with the ownership of, or oil and gas operations to be conducted on, the Assets;

 

		(vii)	all lessors’ royalties, overriding royalties, net profits interests, carried interests, production
payments, reversionary interests and other burdens on or deductions from the proceeds of production created or in existence as
of the Effective Time, whether recorded or unrecorded, provided that such matters do not operate to reduce the Net Revenue
Interests of Seller below those set forth in Exhibit B or increase the Working Interests of Seller above those set
forth in Exhibit B without a corresponding increase in the Net Revenue Interests;

 

		(viii)	preferential rights to purchase or similar agreements with respect to which (A) waivers
or consents are obtained from the appropriate parties for the transaction contemplated hereby or (B) required notices have been
given for the transaction contemplated hereby to the holders of such rights and the appropriate period for asserting such rights
has expired without an exercise of such rights;

 

		(ix)	required Third Party consents to assignments or similar agreements with respect to which (A) waivers
or consents are obtained from the appropriate parties for the transaction contemplated hereby, (B) required notices have been given
for the transaction contemplated hereby to the holders of such rights and the appropriate period for asserting such rights has
expired without an exercise of such rights, or (C) failure to obtain the same does not (i) expressly render the transfer of the
applicable Assets void or voidable, (ii) result in lease termination, or (iii) result in liquidated damages.

 

		(x)	all rights to consent by, required notices to, filings with, or other actions by Governmental Authorities
in connection with the sale or conveyance of oil and gas leases or interests therein that are customarily obtained subsequent to
such sale or conveyance;

 

    	(6)

    	 

    

 

		(xi)	division orders to the extent the same do not reduce the Net Revenue Interests of Seller below
those set forth in Exhibit B or increase the Working Interests of Seller above those set forth in Exhibit B without a corresponding
increase in the Net Revenue Interest;

 

		(xii)	rights reserved to or vested in any Governmental Authority to control or regulate any of the Assets
and the applicable laws, rules, and regulations of such Governmental Authorities;

 

		(xiii)	any liens of record to be released by Seller at the Closing;

 

		(xiv)	all defects and irregularities affecting the Assets which in the aggregate (A) do not operate to
(1) reduce the Net Revenue Interest of Seller, (2) increase the proportionate share of costs and expenses of leasehold operations
attributable to or to be borne by the Working Interests of Seller, (3) otherwise interfere materially with the operation, value
or use of the Assets or (4) that would not be considered material when applying general industry standards or (B) operate to increase
the proportionate share of costs and expenses of leasehold operations attributable to or to be borne by the Working Interest of
Seller, so long as there is a proportionate increase in Seller’s Net Revenue Interest.

 

Section 3.03   Title
Defect. The term “Title Defect,” as used in this Agreement, shall mean: (a) any encumbrance, encroachment,
irregularity, defect in or objection to Seller’s ownership of any Asset (expressly excluding Permitted Encumbrances) that
causes Seller not to have Defensible Title to such Asset or (b) any default by Seller under a lease, farmout agreement or other
contract or agreement that would (i) have a material adverse affect on the operation, value or use of such Asset, (ii) prevent
Seller from receiving the proceeds of production attributable to Seller’s interest therein or (iii) result in cancellation
of Seller’s interest therein.

 

Section 3.04    Notice
of Title Defects.

 

		(a)	If Buyer discovers any Title Defect affecting any Asset, Buyer shall notify Seller as promptly
as possible, but no later than the expiration of the Examination Period of such alleged Title Defect. To be effective, such notice
must (i) be in writing, (ii) be received by Seller by 5:00 p.m. Central Standard Time on the expiration date of the Examination
Period and (iii) describe the Title Defect in reasonable detail, to the extent then reasonably known by Buyer (including the
estimated value of such Title Defect as determined by Buyer). Any matters that may otherwise constitute Title Defects, but of which
Seller has not been notified by Buyer in accordance with the foregoing, shall be deemed to have been waived by Buyer for all purposes
and shall constitute Permitted Encumbrances.

 

    	(7)

    	 

    

 

		(b)	Upon the receipt of such effective notice from Buyer, Seller, at Seller’s option, shall (i)
subject to Section 3.05(a), attempt to cure such Title Defect at any time prior to the Closing or (ii) exclude the affected
Asset from the sale and reduce the Purchase Price by the Allocated Value of such affected Asset as set forth on Exhibit C.

 

		(c)	The value attributable to each Title Defect (the “Title Defect Value”) that
is asserted by Buyer in the Title Defect notices shall be determined based upon the criteria set forth below:

 

		(i)	If the Title Defect is a lien upon any Asset, the Title Defect Value is the amount reasonably expected
to be necessary to be paid to remove the lien from the affected Asset.

 

		(ii)	If the Title Defect asserted is that the Net Revenue Interest attributable to any Well or unit
or Well location is less than that stated in Exhibit C or the Working Interest attributable to any Well or unit or
Well location is greater than that stated in Exhibit C, then the Title Defect Value shall take into account the relative
change in the interest from Exhibit C and the appropriate Allocated Value attributed to such Asset.

 

		(iii)	If the Title Defect represents an obligation, encumbrance, burden or charge upon the affected Asset
(including any increase in Working Interest for which there is not a proportionate increase in Net Revenue Interest) for which
the economic detriment to Buyer is unliquidated, the amount of the Title Defect Value shall be determined by taking into account
the Allocated Value of the affected Asset, the portion of the Asset affected by the Title Defect, the legal effect of the Title
Defect, the potential discounted economic effect of the Title Defect over the life of the affected Asset.

 

		(iv)	If a Title Defect is not in effect or does not adversely affect an Asset throughout the entire
productive life of such Asset, such fact shall be taken into account in determining the Title Defect Value.

 

		(v)	The Title Defect Value shall be determined without duplication of any costs or losses included
in another Title Defect Value hereunder.

 

		(vi)	Notwithstanding anything herein to the contrary, in no event shall a Title Defect Value exceed
the Allocated Value of the Wells, units or other Assets affected thereby.

 

    	(8)

    	 

    

  

		(vii)	Such other factors as are reasonably necessary to make a proper evaluation.

 

Section 3.05    Remedies
for Title Defects.

 

		(a)	With respect to each Title Defect that Seller does not cure on or before the Closing, except as
otherwise provided in this Section 3.05, the Purchase Price shall be reduced by an amount equal to the Title Defect Value
agreed upon in writing by Buyer and Seller or, if Buyer agrees, Seller shall indemnify Buyer pursuant to Section 14.04 against
all costs which Buyer may incur in connection with such Title Defect. If any Title Defect is in the nature of an unobtained consent
to assignment or other restriction on assignability, the provisions of Section 3.08 shall apply.

 

		(b)	Except for those affected Assets which Seller elects to exclude from this transaction pursuant
to Section 3.04(b)(ii), if on or before Closing the Parties have not agreed upon the validity of any asserted Title Defect
or have not agreed on the Title Defect Value attributable thereto, either Party shall have the right to elect to have the validity
of such Title Defect and/or such Title Defect Value determined by an Independent Expert pursuant to Section 16.03; provided
that if the validity of any asserted Title Defect, or the Title Defect Value attributable thereto, is not determined before Closing,
the affected Asset shall be excluded from the sale and the Purchase Price shall be reduced by the Allocated Value of such affected
Asset as set forth on Exhibit C. In no event shall Buyer be required to purchase any such excluded Asset after Closing.

 

		(c)	Notwithstanding anything to the contrary in this Agreement, (i) if the value of a given individual
Title Defect (or individual Title Benefit (as defined in Section 3.09(a)) does not exceed $50,000 then no adjustment to
the Purchase Price shall be made for such Title Defect (or Title Benefit), (ii) if the aggregate adjustment to the Purchase Price
determined in accordance with this Agreement for Title Defects and Environmental Defects (as hereinafter defined) does not exceed
three percent (3%) of the Purchase Price prior to any adjustments thereto, then no adjustment of the Purchase Price shall be made
therefor and (iii) if the aggregate adjustment to the Purchase Price determined in accordance with this Agreement for Title Defects
and Environmental Defects does exceed three percent (3%) of the Purchase Price prior to any adjustments thereto, then the Purchase
Price shall only be adjusted by the amount of such excess.

 

Section 3.06    Intentionally
Omitted.

 

Section 3.07    Preferential
Rights To Purchase. Schedule 3.07 lists all agreements containing a preferential right to purchase (the “Preference
Rights”).

 

    	(9)

    	 

    

  

Section 3.08    Consents
to Assignment. Seller shall use all reasonable efforts to obtain all necessary consents set forth on Schedule 5.11 
from Third Parties to assign the Assets prior to the Closing (other than governmental approvals that are customarily
obtained after the Closing) and Buyer shall use reasonable efforts to assist Seller with such efforts. If prior to the Closing,
Seller fails to obtain a consent to assign that would invalidate the conveyance of the Asset affected by the consent to assign
to Buyer or materially affect the value or use of the Asset, then Seller shall retain the affected Asset and the Purchase Price
shall be reduced by the Allocated Value of the affected Asset. In no event shall Buyer be required by this provision to pay for
any such excluded Asset after Closing. For purposes of the foregoing, consent requirements that do not expressly (i) render transfer
of the applicable Assets to Buyer void or voidable if such consent is not obtained, (ii) result in lease termination, or (iii)
result in liquidated damages or otherwise materially affect the value or the use of the Asset, shall not be objectionable by Buyer
and any such Assets shall be conveyed and paid for at Closing without regard to whether or not consents thereto are obtained. Buyer
shall reasonably cooperate with Seller in obtaining any required consent including providing assurances of reasonable financial
conditions, but Buyer shall not be required to expend funds or make any other type of financial commitments as a condition of obtaining
such consent. Notwithstanding anything herein to the contrary, certain leases on Schedule 5.11 are notated as requiring
consent prior to Closing or else the Purchase Price shall be reduced, and if any such notated consent is not obtained prior to
Closing, then the Purchase Price shall be reduced by the Allocated Value attributable to the applicable lease and such lease shall
not ever be assigned to Buyer. 

 

Section 3.09    Remedies
for Title Benefits.

 

		(a)	If either Party discovers any Title Benefit during the Examination Period affecting the Assets,
it shall promptly notify the other Party in writing thereof on or before the expiration of the Examination Period. Subject to Section
3.05, Seller shall be entitled to an upward adjustment to the Purchase Price pursuant to Section 10.02(a)(iv) with respect
to all Title Benefits in excess of $50,000 in an amount mutually agreed upon by the Parties; provided, that notwithstanding
anything in this Agreement to the contrary (i) if the aggregate adjustment to the Purchase Price for Title Benefits determined
in accordance with this Agreement does not exceed three percent (3%) of the Purchase Price prior to any adjustments thereto, then
no adjustment of the Purchase Price shall be made therefor and (ii) if the aggregate adjustment to the Purchase Price for Title
Benefits determined in accordance with this Agreement does exceed three percent (3%) of the Purchase Price prior to any adjustments
thereto, then the Purchase Price shall only be adjusted by the amount of such excess. For purposes of this Agreement, the term
“Title Benefit” shall mean Seller’s interest in any Subject Interest that is greater than or in addition
to that set forth in Exhibit B (including, without limitation, a Net Revenue Interest that is greater than that set
forth in Exhibit B) or Seller’s Working Interest in any Subject Interest that is less than the Working Interest
set forth in Exhibit B (without a corresponding decrease in the Net Revenue Interest). Any matters that may otherwise
constitute Title Benefits, but of which Buyer has not been specifically notified by Seller in accordance with the foregoing, shall
be deemed to have been waived by Seller for all purposes.

 

    	(10)

    	 

    

  

		(b)	If, with respect to a Title Benefit, the Parties are not deemed to have agreed on the amount of
the upward Purchase Price Adjustment or have not otherwise agreed on such amount prior to the Closing Date, Seller or Buyer shall
have the right to elect to have such Purchase Price Adjustment determined by an Independent Expert pursuant to Section 16.03.
If the amount of such adjustment is not determined pursuant to this Agreement by the Closing, the undisputed portion of the Purchase
Price with respect to the Asset affected by such Title Benefit shall be paid by Buyer at the Closing and, subject to Section
3.05, upon determination of the amount of such adjustment, any unpaid portion thereof shall be paid by Buyer to Seller.

 

Section 3.10    Tag
Along Rights.

 

		(a)	“Tag Along Assets” are those Assets which are subject to rights of Third Parties to
participate in the sale of Tag Along Assets (“Tag Along Rights”) as set forth in this Section 3.10, with the allocated
values and names of Tag Along Rights holders referenced on Schedule 3.10, and as delineated in the agreements referenced on Schedule
3.10. “Tag Along PSA” collectively means the various purchase and sale agreements each in the form of Exhibit H hereto
to be executed on or before December 23, 2013 by the holders of the Tag Along Rights who elect, on or before December 23, 2013,
to sell their interests in the Tag Along Assets to Buyer.

 

		(b)	On the date hereof, Seller shall give timely notice of the proposed sale and purchase under this
Agreement to Third Parties who have Tag Along Rights under applicable joint operating agreements to participate in the sales by
the Seller of certain Assets. Such notice shall be given no later than two (2) business days after the date of this Agreement and
shall state that the closing of the Tag Along transactions will only occur on December 30, 2013, include a description of the Tag
Along Assets in a format substantially similar to the Exhibits and Schedules to this Agreement and the proposed purchase price
of such acquisition, calculated based on the Allocated Value for such Tag Along Assets as described on Schedule 3.10 and in accordance
with the agreement granting such Tag Along Rights, as described in Schedule 3.10. The notice to the Third Parties who have Tag
Along Rights shall provide that each of said parties shall provide Seller with written notice, on or before December 23, 2013 at
5:00 p.m. Central Standard Time, of its election to sell its interest in the Tag Along Assets or a waiver of its right to sell
its interest in the Tag Along Assets. Seller shall promptly inform Buyer as to all such Third Parties who waive their Tag Along
Rights and all those who indicated a desire to participate.

 

    	(11)

    	 

    

 

		(c)	No later than two (2) business days after the date of this Agreement, Seller shall supply each
party who has Tag Along Rights with an executed copy of this Agreement (together with all Exhibits and Schedules hereto, except
that the Purchase Price and non-Tag Along asset Allocated Values shall be redacted), along with a written notice that their election
to sell their Tag Along Assets must be evidenced by a signed copy of their Tag Along PSA in the form attached hereto as Exhibit
H (including the purchase price, applicable exhibits and applicable schedules described in the notice sent pursuant to Section
3.10(b)) and forwarded along with wiring instructions to Buyer prior to December 23, 2013, or else any such Third Party shall be
deemed to have waived its right to sell its Tag Along Asset to Buyer.

 

Article
IV

Environmental Matters

 

Section 4.01    Environmental
Review.

 

		(a)	Buyer shall have the right to conduct or cause a consultant (“Buyer’s Environmental
Consultant”) to conduct an environmental review of the Assets and Seller’s records pertaining to the Assets (as
set forth in Section 3.01) prior to the expiration of the Examination Period (“Buyer’s Environmental Review”).
The cost and expense of Buyer’s Environmental Review, if any, shall be borne solely by Buyer. The scope of work comprising
Buyer’s Environmental Review shall not include any intrusive test or procedure without the prior written consent of Seller.
Buyer shall (and shall cause Buyer’s Environmental Consultant to): (i) consult with Seller before conducting any work comprising
Buyer’s Environmental Review, (ii) perform all such work in a safe and workmanlike manner and so as to not unreasonably interfere
with Seller’s operations and (iii) comply with all applicable laws, rules, and regulations. Seller shall use commercially
reasonable efforts to obtain any Third Party consents and otherwise cooperate with Buyer in conducting Buyer’s Environmental
Review and any activities related thereto. Seller shall have the right to have a representative or representatives accompany Buyer
and Buyer’s Environmental Consultant at all times during Buyer’s Environmental Review. With respect to any samples
taken in connection with Buyer’s Environmental Review, Buyer shall take split samples, providing one of each such sample,
properly labeled and identified, to Seller. The Parties shall execute a “common undertaking” letter regarding the confidentiality
for the Environmental Review where appropriate. Buyer hereby agrees to release, defend, indemnify and hold harmless Seller from
and against all claims, losses, damages, costs, expenses, causes of action and judgments of any kind or character (including
those resulting from Seller’s sole, joint, COMPARATIVE or concurrent negligence or strict liability) to the extent
arising out of Buyer’s Environmental Review. Buyer hereby covenants and agrees that it will have at least $2,000,000 of general
liability insurance to cover its indemnification hereunder prior to the commencement of the Environmental Review. 

 

    	(12)

    	 

    

  

		(b)	Unless otherwise required by applicable law, Buyer shall (and shall cause Buyer’s Environmental
Consultant to) treat confidentially any matters revealed by Buyer’s Environmental Review and any reports or data generated
from such review (the “Environmental Information”), and Buyer shall not (and shall cause Buyer’s Environmental
Consultant to not) disclose any Environmental Information to any Governmental Authority or other Third Party without the prior
written consent of Seller unless otherwise required by law. Unless otherwise required by law, prior to the Closing, Buyer may use
the Environmental Information only in connection with the transactions contemplated by this Agreement. If Buyer, Buyer’s
Environmental Consultant, or any Third Party to whom Buyer has provided any Environmental Information become legally compelled
to disclose any of the Environmental Information, Buyer shall, as soon as reasonably practicable, provide Seller with good faith
notice prior to any such disclosure so as to allow Seller to attempt to file any protective order, or seek any other remedy, as
it deems appropriate under the circumstances. If this Agreement is terminated prior to the Closing, Buyer shall deliver the Environmental
Information to Seller, which Environmental Information shall become the sole property of Seller. Buyer shall provide two (2) copies
of the Environmental Information to Seller without charge.

 

		(c)	Buyer acknowledges that the Assets have been used for exploration, development, and production
of oil and gas and that there may be petroleum, produced water, wastes, or other substances or materials located in, on or under
or associated with the Assets. Equipment and sites included in the Assets may contain asbestos, hazardous substances, or naturally
occurring radioactive material (“NORM”). NORM may affix or attach itself to the inside of wells, materials,
and equipment as scale, or in other forms. The wells, materials, and equipment located on the Assets may contain NORM and other
wastes or hazardous substances. NORM containing material and/or other wastes or hazardous substances may have come in contact with
various environmental media, including without limitation, water, soils or sediment. Special procedures may be required for the
assessment, remediation, removal, transportation, or disposal of environmental media, wastes, asbestos, hazardous substances and
NORM from the Assets.

 

    	(13)

    	 

    

 

Section 4.02    Environmental
Definitions.

 

		(a)	Environmental Defects. For purposes of this Agreement, the term “Environmental
Defect” shall mean, with respect to any given Asset, any environmental condition that (i) constitutes, pursuant to Environmental
Laws (as hereinafter defined) in effect as of the date of this Agreement in the jurisdiction in which such Asset is located, violation
of such Environmental Laws or environmental permits, (ii) would reasonably be expected to constitute a violation of such Environmental
Laws or environmental permits if investigated by a Governmental Authority (as hereinafter defined), regardless of whether Seller
has been so notified or investigated by a Governmental Authority or (iii) would require remediation under such Environmental Laws
(other than any plugging and abandonment and associated surface restoration obligations under any applicable Environmental Laws,
except for any of the foregoing covered by clauses (i) or (ii)).

 

		(b)	Governmental Authority. For purposes of this Agreement, the term “Governmental
Authority” shall mean, as to any given Asset, the United States and the state, county, parish, city and political subdivisions
in which such Asset is located and that exercises jurisdiction over such Asset, and any agency, department, board or other instrumentality
thereof that exercises jurisdiction over such Asset.

 

		(c)	Environmental Laws. For purposes of this Agreement, the term “Environmental Laws”
shall mean all laws, statutes, ordinances, court decisions, rules and regulations of any Governmental Authority pertaining to health
or the environment as may be interpreted by applicable court decisions or administrative orders, including, without limitation,
the Clean Air Act, as amended, the Comprehensive Environmental Response, Compensation and Liability Act, as amended (“CERCLA”),
the Federal Water Pollution Control Act, as amended, the Occupational Safety and Health Act, as amended, the Resources Conservation
and Recovery Act, as amended, the Safe Drinking Water Act, as amended, the Toxic Substances Control Act, as amended, the Superfund
Amendment and Reauthorization Act of 1986, as amended, the Hazardous Materials Transportation Act, as amended, and comparable state
and local laws.

 

		(d)	Environmental Defect Value. For purposes of this Agreement, the term “Environmental
Defect Value” shall mean, with respect to any Environmental Defect, the value, as of the Closing Date, of the estimated
costs and expenses to correct such Environmental Defect in the most cost-effective manner reasonably available, consistent with
Environmental Laws, taking into account that non-permanent remedies (such as mechanisms to contain or stabilize hazardous materials,
including monitoring site conditions, natural attenuation, risk-based corrective action, institutional controls or other appropriate
restrictions on the use of property, caps, dikes, encapsulation, leachate collection systems, etc.) may be the most cost-effective
manner reasonably available.

 

    	(14)

    	 

    

 

Section 4.03     Notice
of Environmental Defects.

 

		(a)	If Buyer discovers any Environmental Defect affecting the Assets, Buyer shall notify Seller prior
to the expiration of the Examination Period of such alleged Environmental Defect. To be effective, such notice must: (i) be
in writing; (ii) be received by Seller prior to the expiration of the Examination Period and (iii) describe the Environmental Defect
in reasonable detail, to the extent reasonably known by Buyer (including the estimated value of such Environmental Defect as determined
by Buyer).

 

		(b)	Except for the matters described in Section 14.01(f) and Section 14.04(a) as it relates
solely to Section 5.13, any matters that may otherwise constitute Environmental Defects, but of which Seller has not been
notified by Buyer in accordance with the foregoing, together with any environmental matter that does not constitute an Environmental
Defect, shall be deemed to have been waived by Buyer for all purposes and constitute an Assumed Obligation (as defined in Section
14.02). Upon the receipt of such effective notice from Buyer, Seller, at Seller’s option, shall (i) cure such Environmental
Defect at any time prior to the Closing or (ii) exclude the affected Asset from the sale and reduce the Purchase Price by the Allocated
Value of such affected Asset as set forth on Exhibit C, or (iii) may, with Buyer’s agreement, take any remedial
action with respect to the alleged Environmental Defect and indemnify Buyer pursuant to Section 14.04 against all costs
which Buyer may incur in connection with same.

 

Section 4.04    Remedies
for Environmental Defects.

 

		(a)	If any Environmental Defect described in a notice delivered in accordance with Section 4.03
is not cured on or before the Closing, and Seller has not elected to exclude the affected Assets from this sale or Buyer and Seller
have not agreed for Seller to indemnify Buyer for the Environmental Defect, then the Purchase Price shall be reduced by the Environmental
Defect Value of such Environmental Defect as agreed by the Parties.

 

		(b)	If Buyer and Seller have not agreed as to the validity of any asserted Environmental Defect, or
if the Parties have not agreed on the Environmental Defect Value therefor, and if Seller shall not have elected to exclude the
affected Assets from this sale pursuant to Section 4.03(b)(ii), then either Party shall have the right to elect to have
the validity of the asserted Environmental Defect, and/or the Environmental Defect Value for such Environmental Defect, determined
by an Independent Expert pursuant to Section 16.03. If the validity of any such asserted Environmental Defect or the amount
of any such Environmental Defect Value is not determined by the Closing, the Asset affected by such disputed Environmental Defect
shall be excluded from the Closing and the Purchase Price paid at the Closing shall be reduced by the Allocated Value of that Asset.
Notwithstanding the foregoing, either Buyer or Seller shall have the right to exclude an Asset from the sale if the Environmental
Defect Value exceeds the Allocated Value of the Asset(s) affected thereby. In no event shall Buyer be required to purchase any
such excluded Asset after Closing.

 

    	(15)

    	 

    

 

		(c)	Notwithstanding anything to the contrary in this Agreement, (i) if the Environmental Defect Value
for a given individual Environmental Defect does not exceed $50,000, then no adjustment to the Purchase Price shall be made
for such Environmental Defect; (ii) if the aggregate adjustment to the Purchase Price determined in accordance with this Agreement
for Title Defects and Environmental Defects does not exceed three percent (3%) of the Purchase Price prior to any adjustments thereto,
then no adjustment of the Purchase Price shall be made therefore and (iii) if the aggregate adjustment to the Purchase Price determined
in accordance with this Agreement for Title Defects and Environmental Defects does exceed three percent (3%) of the Purchase Price
prior to any adjustments thereto, then the Purchase Price shall only be adjusted by the amount of such excess. 

 

Article
V

Representations and Warranties of Seller

 

Seller represents and
warrants and covenants to and with Buyer that:

 

Section 5.01   Seller’s
Existence. Seller is a limited partnership duly organized, in good standing and validly existing under the laws of the State
of Delaware and is qualified to conduct business in the State of Texas. Seller has full legal power, right and authority to carry
on its business as such is now being conducted and as contemplated to be conducted. Seller’s headquarters and principal offices
are all located in the State of Texas.

 

Section 5.02   Legal
Power. Seller has the legal power and right to enter into and perform this Agreement and the transactions contemplated hereby.
The consummation of the transactions contemplated by this Agreement will not violate, nor be in conflict with:

 

		(a)	any provision of Seller’s limited partnership agreement or other governing documents;

 

		(b)	except for any preferential purchase rights and consents to assignment which constitute Permitted
Encumbrances, any agreement or instrument to which Seller is a party or by which Seller or the Assets are bound that will materially
adversely affect the Assets or the use, operation, or value thereof following the Closing; or

 

		(c)	any judgment, order, ruling or decree applicable to Seller as a party in interest or any law, rule
or regulation applicable to Seller that will materially adversely affect the Assets or the use, operation, or value thereof following
the Closing.

 

    	(16)

    	 

    

 

Section 5.03   Execution.
The execution, delivery and performance of this Agreement and the transactions contemplated hereby are duly and validly authorized
by all requisite partnership and/or limited liability company action on the part of Seller. This Agreement constitutes the legal,
valid and binding obligation of Seller enforceable in accordance with its terms, except as such enforceability may be limited by
the effect of bankruptcy, insolvency, reorganization, moratorium, and similar laws from time to time in effect relating to the
rights and remedies of creditors, as well as to general principles of equity (regardless of whether such enforceability is considered
in a proceeding in equity or at law).

 

Section 5.04   Brokers.
No broker or finder is entitled to any brokerage or finder’s fee, or to any commission, based in any way on agreements, arrangements
or understandings made by or on behalf of Seller or any affiliate of Seller for which Buyer has or will have any liabilities or
obligations (contingent or otherwise), and Seller shall indemnify Buyer with respect thereto.

 

Section 5.05   Bankruptcy.
There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated by or to the knowledge of Seller
threatened against Seller or any of its affiliates.

 

Section 5.06   Suits.
Except as shown on Schedule 5.06, there is no suit, action, claim, investigation or inquiry by any person or entity
or by any administrative agency or Governmental Authority and no legal, administrative or arbitration proceeding pending or, to
Seller’s knowledge, threatened against Seller or any of its affiliates with respect to the Assets or against any of the Assets.

 

Section 5.07   Royalties.
All rentals, royalties and other payments due under the Subject Interests described in Exhibit A and Exhibit A-1 have
been paid, except those amounts in suspense which are listed on Schedule 5.07.

 

Section 5.08    Taxes.

 

		(a)	Each material Tax Return required to be filed by Seller with respect to the Assets has been timely
and properly filed under applicable laws and all material Taxes due and owed by Seller relating to the Assets have been timely
and properly paid.

 

		(b)	Except as set forth on Schedule 5.08(b), none of the Assets are subject to or owned by any
tax partnership (other than Seller) requiring a partnership income Tax Return to be filed under Subchapter K of Chapter 1 of Subtitle
A of the Internal Revenue Code.

 

		(c)	Except as set forth on Schedule 5.08(c), the Assets are not subject to any lien for Taxes,
other than for current period Taxes not yet due and payable.

 

		(d)	Neither Seller nor any of its affiliates has received written notice of any pending claim with
respect to the Assets from any taxing authority for assessment of Taxes, and there are no ongoing audits, suits, proceedings, assessments,
reassessments, deficiency claims or other claims relating to any Taxes with respect to the Assets by any applicable taxing authority.

 

    	(17)

    	 

    

  

		(e)	Neither Seller nor any of its affiliates have waived any statute of limitations in respect of Asset
Taxes, nor has Seller or any of its affiliates agreed to any extension of time with respect to any Asset Tax assessment or deficiency.

 

Section 5.09   Contracts.
Schedule 5.09 sets forth a list of all material Contracts that exist as of the date of this Agreement (the “Material
Contracts”). As of the Closing Date, except as set forth on Schedule 5.09, Seller and its affiliates are not in
material breach of, or material default under, and to the knowledge of Seller, no other Person is in material breach of, or material
default under, any Material Contract, and there does not exist under any provision thereof, to the knowledge of Seller, any event
that, with the giving of notice or the lapse of time or both, would constitute such a material breach or material default by any
Person. For the purposes of this Agreement, “Person” shall mean any individual, firm, corporation, partnership,
limited liability company, joint venture, association, trust, unincorporated organization, Governmental Authority or any other
entity.

 

Section 5.10   No
Conflict or Violation. Neither the execution and delivery of this Agreement nor the consummation of the transactions and performance
of the terms and conditions contemplated hereby by Seller will (i) conflict with or result in any breach of any provision
of the partnership agreement or other governing documents of Seller; (ii) be rendered void or ineffective by or under the
terms, conditions or provisions of any agreement, instrument or obligation to which Seller is a party or is subject; (iii) result
in a default under the terms, conditions or provisions of any Asset (or of any agreement, instrument or obligation relating to
or burdening any Asset); or (iv) violate or be rendered void or ineffective under any law, other than, in the case of the
matters described in clauses (ii), (iii) and (iv) of this Section 5.10, the matters referenced in Section 5.11 and
such conflicts, breaches, violations, defaults or other events as will not have a material adverse effect on the value of the Assets,
taken as a whole.

 

Section 5.11   Consents;
Preferential Rights. Except for (i) consents or approvals of, or filings with, any applicable Governmental Authorities
in connection with assignments of the Assets which are not customarily obtained prior to the assignment of the Assets, (ii) Preference
Rights and (iii) the consents, filings or notices expressly described and set forth on Schedule 5.11, no material consent,
approval, authorization or permit of, or filing with or notification to, any Third Party is required for or in connection with
the execution and delivery of this Agreement by Seller or for or in connection with the consummation of the transactions and performance
of the terms and conditions contemplated hereby by Seller. All agreements containing a Preference Right are set forth in Schedule 3.07.

 

Section
5.12  Compliance with Laws. Except with respect to (i) matters set forth on Schedule 5.12
and (ii) compliance with laws concerning taxes (as to which certain representations and warranties are made pursuant to Section
5.08), Seller has no knowledge of any material violation by Seller or any of its affiliates of any law applicable to the
Assets.

 

Section 5.13   Wells.
Except as set forth on Schedule 5.13, there is no Well included in the Assets that:

 

    	(18)

    	 

    

  

(i)     Seller
or any of its affiliates is obligated on the date of this Agreement by law or agreement to cause to be immediately plugged and
abandoned; and

 

(ii)    to
the knowledge of Seller, has been plugged and abandoned other than in compliance in all material respects with law.

 

Section 5.14   Proposed
Operations or Expenditures. Except as set forth on Schedule 5.14, as of the date of this Agreement, there are no outstanding
authorities for expenditure or other commitments to conduct any operations or expend any amount of money on or with respect to
the Assets which are binding on Seller or any of its affiliates or the Assets and will be binding on Buyer after the Closing and
which Seller reasonably anticipates will require the expenditure of money in excess of $100,000.00 per item (net to Seller’s
interest). Seller shall be responsible for all costs incurred in connection with the drilling and completion of the wells described
in Schedule 5.14.

 

Section 5.15   Status
of Seller. Seller is not an “investment company” or a company “controlled” by an “investment
company” within the meaning of the Investment Company Act of 1940, as amended.

 

Section 5.16   Suspense
Funds. Schedule 5.07 sets forth (a) all funds held in suspense by Seller or any of its affiliates as of the date
hereof that are attributable to the Assets, (b) a description of the source of such funds and the reason they are being held in
suspense and (c) if known, the name or names of the Persons claiming such funds or to whom such funds are owed.

 

Section 5.17   Imbalances.
Except as set forth on Schedule 12.01, there are no well or gas imbalances associated with the Assets as of the Effective
Time.

 

Section 5.18   Seller’s
Knowledge. For purposes of this Agreement, the term “Seller’s knowledge” or words of similar import
shall mean and refer solely to the actual knowledge of the following representatives of Seller without duty of investigation or
inquiry on the part of any of them: Ken Beattie, Craig Clark, Curt Kamradt, Tim Dunn and Bobby Floyd.

 

Section 5.19   Affiliate
Transactions. Except for the operating agreements described on Schedule 5.09, none of the Material Contracts are between
Seller, on the one hand, and any affiliate of Seller, on the other hand, other than any such Material Contracts that will be terminated
at or prior to Closing.

 

Section 5.20   Governmental
Licenses. To Seller’s knowledge and except as set forth on Schedule 5.20, each consent, license, permit, grant
or other authorization from any Governmental Authority (a) pursuant to which Seller (or any of its affiliates) currently operates
or holds any interest in any of the Assets or (b) which is required for the operation of the Assets as currently conducted or currently
contemplated to be conducted or the holding of any interest (collectively, the “Seller Permits”) has been issued
or granted to the Seller (or any of its affiliates). The Seller Permits are in full force and effect and constitute all Seller
Permits required to permit Seller (or any of its affiliates) to operate the Assets for which Seller (or any of its affiliates)
is the operator or to conduct its business in respect of, or hold any interest in, the Assets.

 

    	(19)

    	 

    

 

Section 5.21   Tag
Along Rights. Schedule 3.10 sets forth all of the agreements establishing Tag Along Rights and Third Parties who hold Tag Along
Rights that are applicable to the Assets.

 

Article
VI

Representations and Warranties of Buyer

 

Buyer represents and
warrants and covenants to and with Seller that:

 

Section 6.01   Buyer’s
Existence. Buyer is a limited partnership, duly organized and validly existing and in good standing under the laws of the State
of Delaware and is qualified to conduct business in the State of Texas. Buyer has full legal power, right and authority to carry
on its business as such is now being conducted and as contemplated to be conducted.

 

Section 6.02   Legal
Power. Buyer has the legal power and right to enter into and perform this Agreement and the transactions contemplated hereby.
The consummation of the transactions contemplated by this Agreement will not violate, nor be in conflict with:

 

		(a)	any provision of Buyer’s limited partnership agreement or other governing documents;

 

		(b)	any material agreement or instrument to which Buyer is a party or by which Buyer is bound; or

 

		(c)	any judgment, order, ruling or decree applicable to Buyer as a party in interest or any law, rule
or regulation applicable to Buyer.

 

Section 6.03   Execution.
The execution, delivery and performance of this Agreement and the transactions contemplated hereby are duly and validly authorized
by all requisite limited liability company action on the part of Buyer. This Agreement constitutes the legal, valid and binding
obligation of Buyer enforceable in accordance with its terms, except as such enforceability may be limited by the effect of bankruptcy,
insolvency, reorganization, moratorium, and similar laws from time to time in effect relating to the rights and remedies of creditors,
as well as to general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or
at law).

 

Section 6.04   Brokers.
No broker or finder is entitled to any brokerage or finder’s fee, or to any commission, based in any way on agreements, arrangements
or understandings made by or on behalf of Buyer or any affiliate of Buyer for which Seller has or will have any liabilities or
obligations (contingent or otherwise), and Buyer shall indemnify Seller with respect thereto.

 

Section 6.05    Bankruptcy.
There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated by or to the knowledge of Buyer
threatened against Buyer or any affiliate of Buyer.

 

Section 6.06   Suits.
There is no suit, action, claim, investigation or inquiry by any person or entity or by any administrative agency or Governmental
Authority and no legal, administrative or arbitration proceeding pending or, to Buyer’s knowledge, threatened against Buyer
or any affiliate of Buyer that has materially affected or will materially affect Buyer’s ability to consummate the transactions
contemplated herein.

 

    	(20)

    	 

    

 

Section 6.07   Qualifications.
Buyer is qualified with all applicable Governmental Authorities to own and operate the Assets and has all necessary bonds to own
and operate the Assets.

 

Section 6.08   Investment.
Prior to entering into this Agreement, Buyer has relied solely on this Agreement and was advised by its own legal, tax and other
professional counsel concerning this Agreement, the Assets and the value thereof. Buyer is acquiring the Assets for its own account
and not for distribution or resale in any manner that would violate any state or federal securities law, rule, regulation or order.
Buyer understands and acknowledges that if any of the Assets were held to be securities, they would be restricted securities and
could not be transferred without registration under applicable state and federal securities laws or the availability of an exemption
from such registration.

 

Section 6.09   Funds.
Buyer will have arranged to have available by the Closing Date sufficient funds to enable Buyer to pay in full the Purchase Price
as herein provided and otherwise to perform its obligations under this Agreement.

 

Article
VII

Seller’s Conditions to Close

 

The obligations of
Seller to consummate the transaction provided for herein are subject, at the option of Seller, to the fulfillment on or prior to
the Closing Date of each of the following conditions (except those which by their nature are, or will be, satisfied at the Closing):

 

Section 7.01   Representations.
The representations and warranties of Buyer herein contained shall be true and correct in all material respects on the Closing
Date as though made on and as of such date.

 

Section 7.02   Performance.
Buyer shall have performed all material obligations, covenants and agreements contained in this Agreement to be performed or complied
with by it at or prior to the Closing.

 

Section 7.03   Pending
Matters. No suit, action or other proceeding shall be pending or threatened that seeks to restrain, enjoin or otherwise prohibit
the consummation of the transactions contemplated by this Agreement.

 

Section 7.04   Purchase
Price. Buyer shall have delivered to Seller the Purchase Price, as the same may be adjusted hereunder, in accordance with the
provisions of Article II.

 

Section 7.05   Title
and Environmental. The aggregate amount to be deducted from the Purchase Price at the Closing as determined by the Parties
on account of Title Defects, Environmental Defects and Casualty Losses, and the Allocated Value of the Assets (or portion thereof)
to be excluded on account of preferential purchase rights and consents shall not exceed twenty percent (20%) of the Purchase Price.

 

    	(21)

    	 

    

  

Section 7.06   Execution
and Delivery of the Closing Documents. Buyer shall have executed, acknowledged and delivered, as appropriate, to Seller all
closing documents described in Section 10.05.

 

Section 7.07   Tag
Along Rights. Unless waived by Seller either following receipt by Seller of a waiver of Tag Along Rights satisfactory to Seller
or otherwise waived by Seller, Seller’s obligations under this Agreement with respect to the sale of Assets which relate
to applicable Tag Along Assets are subject to the simultaneous execution by Buyer of a Tag Along PSA in the form of Exhibit H hereto
pertaining to the Tag Along Assets on the same terms and conditions as this Agreement with Third Parties who have exercised their
Tag Along Rights as set forth in the agreements referenced on Schedule 3.10.

 

Article
VIII

Buyer’s Conditions to Close

 

The obligations of
Buyer to consummate the transaction provided for herein are subject, at the option of Buyer, to the fulfillment on or prior to
the Closing Date of each of the following conditions (except those which by their nature are, or will be, satisfied at the Closing):

 

Section 8.01   Representations.
The representations and warranties of Seller herein contained shall be true and correct in all material respects on the Closing
Date as though made on and as of such date.

 

Section 8.02   Performance.
Seller shall have performed all material obligations, covenants and agreements contained in this Agreement to be performed or complied
with by it at or prior to the Closing.

 

Section 8.03   Pending
Matters. No suit, action or other proceeding shall be pending or threatened that seeks to restrain, enjoin, or otherwise prohibit
the consummation of the transactions contemplated by this Agreement.

 

Section 8.04   Execution
and Delivery of the Closing Documents. Seller (or its affiliates) shall have executed, acknowledged and delivered, as appropriate,
to Buyer all closing documents described in Section 10.04.

 

Section 8.05   Title
and Environmental. The aggregate amount to be deducted from the Purchase Price at the Closing as determined by the Parties
on account of Title Defects, Environmental Defects and Casualty Losses, and the Allocated Value of the Assets (or portion thereof)
to be excluded on account of preferential purchase rights and consents shall not exceed 20 percent (20%) of the Purchase Price.

 

Section 8.06   Letter
Regarding Financial Statements. Seller shall have delivered to Buyer the letter required by Section 17.16 regarding
impracticability of preparation of carved out financial statements.

 

Section 8.07   Transition
Services Agreement.Seller (or its affiliates) shall have executed and delivered to Buyer the transition services agreement
in substantially the form attached hereto as Exhibit F (the “Transition Services Agreement”).

 

    	(22)

    	 

    

  

Section 8.08   Concurrent
Rights Agreement. Seller (or its affiliates) shall have executed and delivered to Buyer the concurrent rights agreement in
substantially the form attached hereto as Exhibit F (the “Concurrent Rights Agreement”).

 

Section 8.09   Tag
Along Rights. Unless waived by Buyer either following receipt by Buyer of a copy of a waiver of Tag Along Rights satisfactory
to Buyer or otherwise waived by Buyer, Buyer’s obligations under this Agreement with respect to the sale of Assets which
relate to applicable Tag Along Assets are subject to the execution by Buyer of a Tag Along PSA in the form of Exhibit H hereto
pertaining to the Tag Along Assets on the same terms and conditions as this Agreement with Third Parties who have exercised their
Tag Along Rights as set forth in the agreements referenced on Schedule 3.10 and closing on December 30, 2013 of the transactions
related to Tag Along Assets.

 

Article
IX

Tax Matters

 

Section 9.01   Transfer
Taxes. Buyer and Seller expect that this transaction will not be subject to any sales, use, transfer or similar Taxes (“Transfer
Taxes”) because the transaction is a transfer of realty and the transfer of tangible personal property, if any, is incidental
to the transfer of realty.  Accordingly, no Transfer Taxes will be collected at Closing from Buyer in connection with this
transaction.  Seller and Buyer agree to cooperate with each other in attempting to demonstrate that the requirements for any
exemption from such Taxes have been met. To the extent any Transfer Taxes or recording fees are nevertheless incurred by or imposed
with respect to the transfer of the Assets to Buyer pursuant to this Agreement, such Transfer Taxes or recording fees shall be
solely the responsibility of Buyer. Buyer and Seller shall reasonably cooperate in good faith to minimize, to the extent permissible
under applicable law, the amount of any such Transfer Taxes and recording fees. For the avoidance of doubt, Seller shall retain
all liability for and shall pay all income Tax, franchise Tax and similar Taxes imposed on any income or gain realized by Seller
pursuant to the transactions contemplated in this Agreement.

 

Section 9.02   Asset
Taxes. Seller shall retain responsibility for and bear all Asset Taxes for (A) any period ending prior to the Effective Time
and (B) the portion of any Straddle Period that ends immediately prior to the Effective Time. All Asset Taxes with respect to the
ownership or operation of the Assets arising on or after the Effective Time shall be allocated to and borne by Buyer. For purposes
of allocation between Seller and Buyer of Asset Taxes that are payable with respect to Straddle Periods, the portion of any such
Taxes that are attributable to the portion of the Straddle Period that ends immediately prior to the Effective Time shall (i) in
the case of Asset Taxes that are based upon or related to income or receipts or imposed on a transactional basis such as severance
or production Taxes, be deemed equal to the amount that would be payable if the tax year or period ended immediately prior to the
Effective Time; and (ii) in the case of other Asset Taxes, be deemed equal to the product of (1) the amount of such Asset
Taxes multiplied by (2) the quotient of the number of days in the portion of such Straddle Period ending on the day immediately
prior to the day on which the Effective Time occurs, divided by the total number of days in such Straddle Period. To the extent
the actual amount of Asset Taxes is not determinable at Closing or at the time the Final Statement is prepared, as applicable,
Buyer and Seller shall utilize the most recent information available in estimating the amount of Asset Taxes for purposes of Sections
10.02(a)(ii), 10.02(b)(iii), and 12.02. If, at the time the actual amount of an Asset Tax is determined, the
amount of such Asset Tax paid by Seller, plus, if applicable, the amount of any adjustment to the Purchase Price with respect to
such Asset Tax made pursuant to Section 10.02(b)(iii) and Section 12.02 minus, if applicable, the amount of
any adjustment to the Purchase Price with respect to such Asset Tax made pursuant to Section 10.02(a)(ii) and Section
12.02 is (x) less than Seller’s share of the actual amount of such Asset Tax determined pursuant to the foregoing provisions
of this Section 9.02, then Seller shall promptly pay Buyer an amount equal to such difference or (y) more than Seller’s
share of the actual amount of such Asset Tax, determined pursuant to the foregoing provisions of this Section 9.02, then
Buyer shall promptly pay Seller an amount equal to such difference.

 

    	(23)

    	 

    

  

Section 9.03    Purchase
Price Allocation. Seller and Buyer shall cooperate in the preparation of Internal Revenue Service Form 8594 pursuant to Section
1060 of the Internal Revenue Code of 1986, as amended and the Treasury Regulations promulgated thereunder, to report the allocation
of the Purchase Price, the Assumed Obligations and any other items constituting consideration for applicable income Tax purposes
(to the extent known at such time) among the Assets and in a manner that is, to the maximum extent possible, consistent with the
allocation set forth in Exhibit C (the “Purchase Price Allocation”). Buyer and Seller agree to amend
the Purchase Price Allocation to reflect adjustments to the Purchase Price and to report the transactions contemplated by this
Agreement consistently with the Purchase Price Allocation, as adjusted by the Parties, on any Tax Return, and will not assert,
and will cause their affiliates not to assert, in connection with any Tax audit or other proceeding with respect to Taxes, any
asset values or other items inconsistent with the amounts set forth in the Purchase Price Allocation except with the agreement
of the other Parties or as required by applicable law.

 

Section 9.04    Tax
Cooperation. The Parties shall cooperate fully, as and to the extent reasonably requested by the other Party, in connection
with the filing of Tax Returns and any audit, litigation, or other proceeding with respect to Taxes relating to the Assets. Such
cooperation shall include the retention and (upon another Party’s request) the provision of records and information that
are relevant to any such Tax Return or audit, litigation or other proceeding and making employees available on a mutually convenient
basis to provide additional information and explanation of any material provided under this Agreement. Seller and the Buyer agree
to retain all books and records with respect to tax matters pertinent to the Assets relating to any tax period beginning before
the Effective Time until the expiration of the statute of limitations of the respective tax periods and to abide by all record
retention agreements entered into with any taxing authority.

 

Section 9.05    754
Elections. Seller shall, prior to the Closing, (i) cause each Asset that is classified as (or treated as being held by) a partnership
(other than Seller) for federal income tax purposes to either (x) have in effect an election under Section 754 of the Internal
Revenue Code for any taxable year that includes the Closing Date or (y) obtain all necessary consents therefor; and (ii) provide
evidence satisfactory to Buyer thereof.

 

Section 9.06    Tax
Definitions.

 

		(a)	“Asset Taxes” means all ad valorem, property, excise, severance, production
or similar Taxes (including any interest, fine, penalty or addition to Tax imposed by a taxing authority in connection with such
Taxes) based upon operation or ownership of the Assets or the production of Hydrocarbons therefrom but excluding, for the avoidance
of doubt, (a) income, capital gains, franchise and similar Taxes and (b) Transfer Taxes.

 

    	(24)

    	 

    

 

		(b)	“Straddle Period” shall mean any tax period beginning before and ending after the Effective
Time.

 

		(c)	“Tax” or “Taxes” means (i) all taxes, assessments, fees, and other charges
of any kind whatsoever imposed by any taxing authority, including any federal, state, local and/or foreign income tax, surtax,
remittance tax, presumptive tax, net worth tax, special contribution tax, production tax, value added tax, withholding tax, gross
receipts tax, windfall profits tax, profits tax, ad valorem tax, personal property tax, real property tax, sales tax, goods and
services tax, service tax, transfer tax, use tax, excise tax, premium tax, stamp tax, motor vehicle tax, entertainment tax, insurance
tax, capital stock tax, franchise tax, occupation tax, payroll tax, employment tax, unemployment tax, disability tax, alternative
or add-on minimum tax and estimated tax, (ii) any interest, fine, penalty or additions to tax imposed by a taxing authority in
connection with any item described in clause (i), and (iii) any liability in respect of any item described in clauses (i) or (ii)
above, that arises by reason of a contract, assumption, transferee or successor liability, operation of law (including by reason
of participation in a consolidated, combined or unitary Tax Return) or otherwise.

 

		(d)	“Tax Return” shall mean any report, return, information statement, schedule, attachment,
payee statement or other information required to be provided to any taxing authority with respect to Taxes or any amendment thereof,
including any return of an affiliated, combined or unitary group, and any and all work papers relating to any Tax Return.

 

Article
X

The Closing

 

Section 10.01 Time
and Place of the Closing. If the conditions referred to in Articles VII and VIII of this Agreement have been
satisfied or waived in writing, the transactions contemplated by this Agreement (the “Closing”) shall take place
on December 30, 2013 (the “Closing Date”) electronically, or at such other time and place as may be designated
in writing by Buyer and Seller.

 

Section 10.02  Adjustments
to Purchase Price at the Closing.

 

		(a)	The Purchase Price shall be increased by the following amounts:

 

    	(25)

    	 

    

		(i)	The proceeds of production of Hydrocarbons attributable to the Assets before the Effective Time
and received by Buyer, plus to the extent proceeds thereof are or will be received by Buyer, an amount equal to the value of all
Hydrocarbons attributable to the Assets that, at the Effective Time, are owned by Seller and are in storage above the pipeline
connection based upon the price for which such production is sold (net of all royalties to be paid by or on behalf of Buyer with
respect thereto);

 

		(ii)	Asset Taxes prorated to Buyer pursuant to Section 9.02, but paid by Seller before Closing;

 

		(iii)	The amount of all Property Expenses incurred in the ordinary course of business attributable to
the Assets from and after the Effective Time and paid or payable by Seller, subject to the terms hereof;

 

		(iv)	all upward Purchase Price adjustments for Title Benefits determined in accordance with Article
III; and

 

		(v)	any other amount subject to an upward Purchase Price adjustment provided for in this Agreement
or agreed upon by Buyer and Seller.

 

		(b)	The Purchase Price shall be decreased by the following amounts:

 

		(i)	The proceeds of production of Hydrocarbons attributable to the Assets occurring from and after
the Effective Time and received by Seller (net of all royalties to be paid by or on behalf of Seller with respect thereto);

 

		(ii)	The amount of all Property Expenses incurred in the ordinary course of business attributable to
the Assets prior to the Effective Time and paid or payable by Buyer;

 

		(iii)	Asset Taxes prorated to Seller pursuant to Section 9.02 that are not paid by Seller prior
to Closing (which prorated Asset Taxes so deducted from the Purchase Price shall be the sole obligation of Buyer following Closing);

 

		(iv)	the Allocated Value of any Subject Interest excluded from sale due to failure to obtain consent
pursuant to Section 3.08;

 

		(v)	all downward Purchase Price Adjustments for Title Defects and Environmental Defects determined
in accordance with Article III and Article IV;

 

		(vi)	any other amount subject to a downward Purchase Price Adjustment provided for in this Agreement
or agreed upon by Buyer and Seller; and

 

		(vii)	the Deposit.

 

    	(26)

    	 

    

  

		(c)	For purposes of Sections 10.02(a) and (b), “Property Expenses”
shall mean all costs and expenses (other than Taxes) that are incurred in the ordinary course of business in the ownership or operation
of the Assets, including, without limitation, all drilling costs, all capital expenditures and all regular overhead charges under
applicable Third Party operating agreements.

 

		(d)	The adjustments described in Sections 10.02(a) and (b) are hereinafter referred to
as the “Purchase Price Adjustments.”

 

Section 10.03  Closing
Statement. On or before December 23, 2013 at 5:00 p.m. Central Standard Time, Seller shall prepare a statement of the estimated
Purchase Price Adjustments taking into account the foregoing principles (the “Statement”). On or before December
27, 2013 at 5:00 p.m. Central Standard Time, Buyer will deliver to Seller a written report containing all changes with the explanation
therefor that Buyer proposes to be made to the Statement. Such Statement, as agreed upon by the Parties, will be used to determine
the Purchase Price payable by Buyer to Seller at the Closing pursuant to Section 10.05(a); provided that if the Parties
do not agree upon a Purchase Price Adjustment set forth in the Statement, then the amount of such Purchase Price Adjustment used
to determine the Purchase Price payable by Buyer to Seller at the Closing pursuant to Section 10.05(a) shall be the amount
set forth in the draft Statement delivered to Buyer, subject to final adjustment and resolution pursuant to Section 12.02.
Prior to or at the Closing, Buyer and Seller will execute and deliver to each other the final Statement as prepared in accordance
with the terms hereof. Seller shall also cooperate with, assist, and provide relevant information to, Tag Along Rights holders
who elect to sell Tag Along Assets and any non-operators of the Assets who elect to sell their non-operating interests to Buyer
in the preparation of such Tag Along Rights holders’ or non-operators’ Statements.

 

Section 10.04  Actions
of Seller at the Closing.

 

At the Closing, Seller
shall:

 

		(a)	execute, acknowledge and deliver to Buyer original copies of the assignment substantially in the
form as set forth in Exhibit D of this Agreement (the “Assignment”) in sufficient counterparts for
recordation in each of the counties in which the Leases and Wells are located and such other instruments (in form and substance
mutually agreed upon by Buyer and Seller) as may be reasonably necessary to convey the Assets to Buyer;

 

		(b)	execute, acknowledge and deliver to Buyer letters in lieu of transfer or division orders directing
all purchasers of production from the Subject Interests to make payment of proceeds attributable to such production to Buyer from
and after the Effective Time as reasonably requested by Buyer prior to the Closing Date;

 

		(c)	deliver to Buyer possession of the Assets;

 

		(d)	execute and deliver to Buyer a certificate of non-foreign status of Seller meeting the requirements
of Treasury Regulation Section 1.1445-2(b)(2);

 

    	(27)

    	 

    

 

		(e)	deliver to Buyer appropriate change of operator forms on those Assets operated by Seller (or any
of its affiliates);

 

		(f)	execute and deliver the Statement;

 

		(g)	execute and deliver the Transition Services Agreement

 

		(h)	execute and deliver the Concurrent Rights Agreement;

 

		(i)	execute, acknowledge and deliver any other agreements provided for herein or necessary or desirable
to effectuate the transactions contemplated hereby;

 

		(j)	deliver to Buyer appropriate releases in recordable form of any financing liens upon the Assets,
duly executed by the lender(s) of record in form and substance reasonably satisfactory to Buyer;

 

		(k)	execute, acknowledge and deliver to Buyer original copies of the mineral deed substantially in
the form as set forth in Exhibit E of this Agreement (the “Mineral Deed”) for recordation in Martin County,
Texas, and such other instruments as may be reasonably necessary to convey the Mineral Interest to Buyer; and

 

		(l)	Seller will deliver a letter to Buyer at Closing stating that full carve out audited financial
statements are not available and are impracticable for Seller to prepare as noted in Section 17.16(a).

 

Section 10.05  Actions
of Buyer at the Closing.

 

At the Closing, Buyer
shall:

 

		(a)	deliver to Seller the Purchase Price (as adjusted pursuant to the provisions hereof and net of
the Deposit) by wire transfer to an account designated in writing by Seller;

 

		(b)	execute and deliver the Statement;

 

		(c)	take possession of the Assets;

 

		(d)	execute, acknowledge and deliver the Assignment, the Mineral Deed and any other agreements provided
for herein or necessary or desirable to effectuate the transactions contemplated hereby;

 

		(e)	execute and deliver the Concurrent Rights Agreement; and

 

		(f)	execute and deliver the Transition Services Agreement

 

    	(28)

    	 

    

 

Article
XI

Termination

 

Section 11.01  Right
of Termination. This Agreement may be terminated at any time at or prior to the Closing:

 

		(a)	by mutual written consent of the Parties;

 

		(b)	by Seller on the Closing Date if the conditions set forth in Article VII have not been satisfied
in all material respects by Buyer or waived by Seller in writing by the Closing Date;

 

		(c)	by Buyer on the Closing Date if the conditions set forth in Article VIII have not been satisfied
in all material respects by Seller or waived by Buyer in writing by the Closing Date;

 

		(d)	by either Party, if the Closing shall not have occurred on or before December 30, 2013;

 

		(e)	by either Party if any Governmental Authority shall have issued an order, judgment or decree or
taken any other action challenging, delaying, restraining, enjoining, prohibiting or invalidating the consummation of any of the
transactions contemplated herein;

 

		(f)	by either Party if (i) the aggregate amount of the Purchase Price Adjustments agreed upon between
the Parties or otherwise finally determined pursuant to this Agreement with respect to all uncured Title Defects (net of the aggregate
amount of the Purchase Price Adjustments for all Title Benefits agreed by the Parties) plus (ii) the aggregate amount of the Environmental
Defect Values agreed upon between the Parties or otherwise finally determined pursuant to this Agreement with respect to all Environmental
Defects, exceeds twenty percent (20%) of the Purchase Price;

 

		(g)	by Buyer in accordance with Section 13.05(c); or

 

		(h)	as otherwise provided herein;

 

provided, however, that no
Party shall have the right to terminate this Agreement pursuant to clause (b), (c), or (d) above if such Party
is at such time in material breach of any provision of this Agreement.

 

Section 11.02  Effect
of Termination. In the event that the Closing does not occur as a result of any Party exercising its right to terminate pursuant
to Section 11.01 then, except as set forth in Section 11.03, this Agreement (other than the provisions hereof
which survive by their terms) shall be null and void and no Party shall have any further rights, liabilities or obligations under
this Agreement.

 

    	(29)

    	 

    

 

Section 11.03  Termination
Remedies.

 

		(a)	If all conditions precedent to the obligations of Buyer set forth in Article VII, or of
Seller set forth in Article VIII, (such Party that has satisfied its conditions precedent, the “Performing Party”)
have been met and the transactions contemplated by this Agreement are not consummated on or before the Closing Date because of
the failure of Buyer or Seller to perform any of its material obligations hereunder or the breach of any representation herein
by Buyer or Seller (such party that has not satisfied its conditions precedent, the “Breaching Party”) and the
Performing Party has performed all of its material obligations hereunder and has not breached any representation herein, then in
such event, the Performing Party shall have the option to terminate this Agreement, in which case (i) if Buyer is the Breaching
Party, Seller shall retain the Deposit as liquidated damages on account of Buyer’s failure to perform its obligations under
this Agreement or Buyer’s breach of any representation under this Agreement, which remedy shall be the sole and exclusive
remedy available to Seller for Buyer’s breaches or (ii) if Seller is the Breaching Party, then Seller shall return the Deposit
to Buyer in immediately available funds within three (3) calendar days after receipt of Buyer’s notice of termination. Buyer
and Seller acknowledge and agree that (i) the Seller’s actual damages upon the event of such a termination are difficult
to ascertain with any certainty, (ii) that the Deposit is a reasonable estimate of such actual damages and (iii) such liquidated
damages do not constitute a penalty. Additionally, if Seller is the Breaching Party, in lieu of terminating this Agreement and
receiving the Deposit, Buyer shall have the right of specific performance of this Agreement. The option to terminate the Agreement
and receive the Deposit or the right to seek specific performance are Buyer’s exclusive remedies for Seller’s breaches.

 

		(b)	If this Agreement is terminated for any reason, other than as set forth in Section 11.03(a), then
Seller shall return the Deposit to Buyer in immediately available funds within three (3) calendar days after the event giving rise
to such payment to Buyer. Buyer and Seller shall thereupon have the rights and obligations set forth elsewhere herein.

 

Section 11.04 Attorneys’
Fees, Etc. If either Party to this Agreement resorts to legal proceedings to enforce this Agreement, the prevailing Party in
such proceedings shall be entitled to recover all costs incurred by such Party, including reasonable attorneys’ fees, in
addition to any other relief to which such Party may be entitled. Notwithstanding anything to the contrary in this Agreement, in
no event shall either Party be entitled to receive any punitive, indirect or consequential damages unless same are a part of a
Third Party claim for which a Party is seeking indemnification hereunder, REGARDLESS OF WHETHER CAUSED OR CONTRIBUTED TO BY
THE SOLE, JOINT, COMPARATIVE OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF THE OTHER PARTY.

 

    	(30)

    	 

    

 

Article
XII

Post Closing Obligations

 

Section 12.01 Gas
Imbalances. Buyer and Seller agree that the net gas imbalance attributable to the Assets as of the Effective Time is believed
to be that which is set forth on Schedule 12.01 (the “Agreed Imbalance”), notwithstanding that the
actual imbalance may be less or greater. Buyer and Seller shall verify the actual net gas imbalance in the post-closing accounting
pursuant to Section 12.02 and any imbalance shall be accounted for between the parties at the price of $3.25 per
MMBTU but only as to those volumes which exceed or are less than the Agreed Imbalance. Such settlement shall be final and neither
party thereafter shall make claim upon the other concerning the gas imbalances of the Assets. BUYER HEREBY ASSUMES ALL RIGHTS
AND LIABILITIES RELATING TO GAS IMBALANCES DISCOVERED AFTER THE FINAL STATEMENT INCLUDING ANY REVENUE ADJUSTMENT CAUSED BY SUCH
SUBSEQUENTLY DISCOVERED IMBALANCE AND AGREES TO DEFFEND AND INDEMNIFY SELLER FROM AND AGAINST ANY CLAIM BY ANYONE ARISING OUT OF
SUCH GAS IMBALANCES REGARDLESS OF SELLER’S NEGLIGENCE OR FAULT (INCLUDING STRICT LIABILITY).

 

Section 12.02  Final
Statement.

 

		(a)	On or before 180 days after the Closing Date, Seller shall prepare and deliver to Buyer a post-closing
statement setting forth a detailed calculation of all post-Closing Purchase Price Adjustments and supporting documentation pursuant
to Section 10.02 (the “Final Statement”). The Final Statement shall include any adjustment, estimate
or payment which was not finally determined as of the Closing Date and any amount to be accounted for pursuant to Section 12.01.
To the extent reasonably required by Seller, Buyer shall assist in the preparation of the Final Statement. Seller shall provide
Buyer such data and information as Buyer may reasonably request supporting the amounts reflected on the Final Statement in order
to permit Buyer to perform or cause to be performed an audit. The Final Statement shall become final and binding upon the parties
on the thirtieth (30th) calendar day following receipt thereof by Buyer (the “Final Settlement Date”) unless
Buyer gives written notice of its disagreement (a “Notice of Disagreement”) to Seller prior to such date. Any
Notice of Disagreement shall specify in detail the dollar amount, nature and basis of any disagreement so asserted. If a Notice
of Disagreement is received by Seller in a timely manner, then the Parties shall resolve the Dispute (as defined in Section
16.01) evidenced by the Notice of Disagreement in accordance with Article XVI. Seller shall also cooperate with, assist,
and provide relevant information to, Tag Along Rights holders who elect to sell Tag Along Assets and any non-operators of the Assets
who elect to sell their non-operating interests to Buyer in the preparation of such Tag Along Rights holders’ or non-operators’
Final Statements.

 

    	(31)

    	 

    

 

		(b)	Within five (5) calendar days after the Final Settlement Date, Seller shall pay to Buyer or Buyer
shall pay to Seller in immediately available funds the net amount due upon (i) the undisputed Final Statement or (ii) resolution
of any Dispute regarding a Notice of Disagreement, the revised Final Statement reflecting such resolutions, which the Parties shall
issue, or cause the Independent Expert or arbitrators to issue, as applicable, following such resolution.

 

Section 12.03  Settlement
of Suspense Funds. On or before April 15, 2014, Seller shall pay or cause to be paid to Buyer an amount equal to all proceeds
from the sales of Hydrocarbons relating to the Assets and payable to owners of working interests, royalties, overriding royalties
and other similar interests (in each case) that are held in suspense or escrow by Seller or an affiliate of Seller as of March
31, 2014.

 

Section 12.04  Financial
Statements. Seller shall, as soon as practicable, but no later than February 21, 2014 at 5:00 p.m. Central Standard Time, provide
the Financial Statements to Buyer.

 

Section 12.05  Further
Cooperation. Seller shall make the Records available to be picked up by Buyer at the offices of Seller during normal business
hours within five (5) calendar days after the Closing to the extent the Records are in the possession of Seller and are not subject
to contractual restrictions on transferability. Seller shall have the right to retain copies of any of the Records pursuant to
the rights granted under Section 17.03.

 

After the Closing Date, each Party, at
the request of the other and without additional consideration, shall execute and deliver, or shall cause to be executed and delivered,
from time to time such further instruments of conveyance and transfer and shall take such other action as the other Party may reasonably
request to convey and deliver the Assets to Buyer and to accomplish the orderly transfer of the Assets to Buyer in the manner contemplated
by this Agreement. After the Closing, the Parties will cooperate to have all proceeds received attributable to the Assets be paid
to the proper Party hereunder and to have all expenditures to be made with respect to the Assets be made by the proper Party hereunder.

 

Article
XIII

Operation of the Assets

 

Section 13.01 Operations
after Effective Time. Seller agrees, from and after the date hereof until the Closing, except as expressly contemplated by
this Agreement, as expressly consented to in writing by Buyer, or in situations wherein emergency action is taken in the face of
risk to life, property or the environment, to, or to cause its affiliates to:

 

		(a)	operate the Assets in the usual, regular and ordinary manner consistent with past practice and
in compliance with law in all material respects;

 

		(b)	maintain the books of account and records relating to the Assets in the usual, regular and ordinary
manner, in accordance with the usual accounting practices of each such Person;

 

    	(32)

    	 

    

 

		(c)	not enter into a contract, or materially amend or change the terms of any such contract that would
involve individual commitments of more than $100,000 or enter into any other material contract;

 

		(d)	not plug or abandon any Well located on the Assets without Buyer’s prior written consent;

 

		(e)	not transfer, sell, mortgage, pledge or dispose of any of the Assets other than the sale and/or
disposal of Hydrocarbons in the ordinary course of business and, upon advance written notice to Buyer, sales of equipment that
is no longer necessary in the operation of the Assets or for which comparable replacement equipment has been obtained and installed
or create or suffer to exist any lien on the Assets other than a lien that is a Permitted Encumbrance;

 

		(f)	preserve in full force and effect and not waive, amend, change, revise or otherwise all oil and
gas leases, operating agreements, easements, rights-of-way, permits, licenses and agreements that relate to the Assets;

 

		(g)	not grant or create any Preferential Purchase Right or other transfer restriction with respect
to the Assets;

 

		(h)	not elect to go non-consent with respect to any operation with respect to the Assets;

 

		(i)	submit to Buyer for prior written approval, all requests for operating or capital expenditures
relating to the Assets that involve individual commitments of more than $100,000;

 

		(j)	maintain any bonds, insurance, letters of credit, guarantees or deposits with any Governmental
Authorities or any other Third Parties required or necessary for the operation of the Assets;

 

		(k)	maintain any consent, license, permit, grant or other authorization from any Governmental Authority
required or necessary for the operation of the Assets; and

 

		(l)	obtain Buyer’s written approval prior to voting under any operating, joint venture, partnership
or similar agreement, which approval shall not be unreasonably withheld or delayed.

 

Section 13.02  Limitations
on the Operational Obligations and Liabilities of Seller.

 

		(a)	From and after the date of execution of this Agreement and until the Closing, and subject to the
provisions of applicable operating and other agreements, Seller shall (or cause its affiliates to) operate the Assets in a manner
consistent with its past practices, and shall carry on its business with respect to the Assets in substantially the same manner
as before execution of this Agreement.

 

    	(33)

    	 

    

 

		(b)	Buyer acknowledges that Seller owns undivided interests in some or all of the Assets, and Buyer
agrees that the acts or omissions of the other working interest owners shall not constitute a violation of the provisions of this
Article XIII, nor shall any action required by a vote of working interest owners constitute such a violation so long as
Seller has voted its interests in a manner that complies with the provisions of this Article XIII.

 

Section 13.03  No
Liability of Seller. Notwithstanding anything to the contrary in this Article XIII, Seller shall have no liability to
Buyer for, and Buyer hereby agrees to release, defend, indemnify and hold harmless Seller from, the incorrect payment of delay
rentals, royalties, shut-in royalties or similar payments or for any failure to pay any such payments through mistake or oversight
(including those resulting from Seller’s sole, joint, COMPARATIVE or concurrent
negligence or strict liability) provided that such payments relate to production months after the Effective Time.
In no event shall Buyer’s remedy for any Seller’s breach of its obligations under this Article XIII exceed the
Allocated Value of the Assets affected by such breach.

 

Section 13.04  Operation
of the Assets After the Closing. On and after the Closing, Seller (or Seller’s affiliate) will operate the Assets on
behalf of the Buyer pursuant to the Transition Services Agreement.

 

Section 13.05  Casualty
Loss.

 

		(a)	Except as provided in this Section 13.05, Buyer shall assume all risk of loss with respect
to, and any change in the condition of, the Assets from the date of this Agreement until the Closing, including with respect to
the depletion of Hydrocarbons, the watering-out of any Well, the collapse of casing, sand infiltration of Wells, and the depreciation
of personal property.

 

		(b)	If after the date of this Agreement and prior to the Closing any part of the Assets shall be damaged
or destroyed by fire or other casualty or if any part of the Assets shall be taken in condemnation or under the right of eminent
domain or if proceedings for such purposes shall be pending or threatened, this Agreement shall remain in full force and effect
notwithstanding any such destruction, taking or proceeding, or the threat thereof and the Parties shall proceed with the transactions
contemplated by this Agreement notwithstanding such destruction or taking without reduction of the Purchase Price, but subject
to Section 13.05(c).

 

    	(34)

    	 

    

		(c)	Notwithstanding Section 13.05(a), in the event of any loss described in Section 13.05(b),
at the Closing, Buyer shall have the option to: (i) exclude the affected Asset from the sale and reduce the Purchase Price
by the Allocated Value of such affected Asset as set forth on Exhibit C or (ii) include the affected Asset in
the sale, in which event Seller shall pay to Buyer all sums paid to Seller by Third Parties by reason of the destruction or taking
of such Assets (up to the Allocated Value thereof), including any sums paid pursuant to any policy or agreement of insurance or
indemnity, and shall assign, transfer and set over unto Buyer all of the rights, title and interest of Seller in and to any claims,
causes of action, unpaid proceeds or other payments from Third Parties, including any policy or agreement of insurance or indemnity,
arising out of such destruction or taking (up to the Allocated Value thereof). Notwithstanding anything to the contrary in this
Section 13.05, other than as provided in any joint operating agreement to which any of the Assets are subject, Seller shall
not be obligated to carry or maintain, and shall have no obligation or liability to Buyer for its failure to carry or maintain,
any insurance coverage with respect to any of the Assets. Notwithstanding anything to the contrary contained in this Section
13.05, should the uncompensated loss exceed twenty percent (20%) of the Purchase Price, Buyer shall have the option to terminate
this Agreement, in which event Seller shall return the Deposit to Buyer within three (3) calendar days after such termination.

 

Section 13.06  Operatorship.
Seller makes no representation and/or warranty to Buyer as to the transferability or assignability of operatorship of such Wells,
but Seller shall and shall cause its affiliates to, cooperate with Buyer and use its commercially reasonable efforts to cause operatorship
of the Wells and Leases to be transferred to Buyer. Buyer acknowledges that the rights and obligations associated with such wells
are governed by applicable agreements and that operatorship will be determined by the terms of those agreements.

 

Section 13.07  Records.
Seller shall, and shall cause its affiliates to, provide Buyer with all accounting records and information relating to the Assets
for the period from the Effective Time to the Closing Date, including all revenue and joint interest billing information and well
master information.

 

Section 13.08 Administrative
Duties and Other Obligations. Seller and its affiliates shall complete all administrative duties and other obligations pertaining
to the production of minerals from the Assets up to the Closing Date, including without limitation, the filing of all state production
and environmental reports, payment of all production severance taxes and the filing of all severance tax reports, the calculation
and payment of all royalties due, the calculation and payment of all Third Party production, and/or the calculation of payments
in kind information, if applicable, and preparation of the revenue run for the calendar month immediately preceding the calendar
month in which the Closing occurs.

 

Section 13.09 Certain
Wells. Seller shall have drilled, completed and brought onto production, or will drill, complete and bring onto production,
the wells listed on Schedule 13.09. Seller shall use its best efforts to drill and complete the wells described on Schedule 13.09
in compliance with the timing set forth on such schedule. Seller shall be responsible for all costs incurred in connection with
the drilling and completion of the wells described in Schedule 13.09.

 

    	(35)

    	 

    

 

Article
XIV

Obligations and Indemnification

 

Section 14.01 Retained
Obligations. Provided that the Closing occurs, Seller shall retain (a) all obligations and liabilities of Seller for the payment
or improper payment of royalties, rentals and other similar payments under the Leases relating to the Subject Interests to the
extent attributable to periods prior to the Effective Time; (b) all obligations of Seller under the Contracts for (i) overhead
charges related to periods prior to the Effective Time, (ii) costs and expenses incurred prior to the Effective Time for goods
and services provided prior to the Effective Time and (iii) other payment obligations that accrue and become due prior to
the Effective Time; (c) all liability of Seller to Third Parties for personal injury or death to the extent occurring prior to
the Effective Time as a result of the operation of the Assets; (d)(i) any and all income Taxes, franchise Taxes and similar Taxes
imposed by any applicable law on Seller or any of its affiliates, or any combined, unitary, or consolidated group of which any
of the foregoing is or was a member, (ii) Asset Taxes allocable to Seller pursuant to Section 9.02 taking into account,
and without duplication of, such Asset Taxes effectively borne by Seller pursuant to Section 10.02(b)(iii) or Section
12.02, (iii) any Taxes imposed on or with respect to the ownership or operation of the Excluded Assets, and (iv) and any all
other Taxes imposed on or with respect to the ownership or operation of the Assets for any tax period (or portion thereof) ending
before the Effective Time; (e) all litigation existing as of the Closing Date, to the extent it relates to the period of time prior
to the Effective Time; (f) any offsite disposal of hazardous materials by Seller from the Subject Interests to offsite locations
occurring prior to the Effective Time; (g) Seller’s employment relationship with its employees and Seller’s employee
benefit plans; (h) all liability of Seller under any credit facilities; (i) all liability of Seller under any hedging, swap, put,
call, collar, future, derivative or similar arrangement; and (j) the Excluded Assets (collectively, the “Retained Obligations”,
and the items specified in (c), (d), (f), (g), (h), (i), (j) and (k) herein, the “Specified Retained Obligations”).

 

Section 14.02 Assumed
Obligations. Provided that the Closing occurs, subject to Buyer’s indemnification rights under Section 14.04,
Buyer hereby assumes all duties, obligations and liabilities of every kind and character of Seller with respect to the Assets or
the ownership or operation thereof (other than the Retained Obligations), attributable to periods before and after the Effective
Time, including, without limitation, those arising out of (a) the terms of the Easements, Contracts, Leases, Personal Property
or Subject Interests comprising part of the Assets, (b) Gas Imbalances, (c) suspense accounts, (d)(i) Asset Taxes allocable to
Buyer pursuant to Section 9.02 taking into account, and without duplication of, such Asset Taxes effectively borne by Buyer
pursuant to Section 10.02(a)(ii) or Section 12.02 and (ii) the Transfer Taxes, if any, allocable to Buyer pursuant
to Section 9.01, (e) the condition (including, without limitation, environmental condition) of the Subject Interests regardless
of whether such condition arose before or after the Effective Time, (f) obligations to properly plug and abandon or re-plug or
re-abandon or remove wells, flowlines, gathering lines or other facilities, equipment or other personal property or fixtures comprising
part of the Assets, (g) obligations to restore the surface of the Subject Interests and obligations to remediate or bring the Subject
Interests into compliance with applicable Environmental Laws (including conducting any remediation activities that may be required
on or otherwise in connection with activities on the Subject Interests) regardless of whether such obligations or conditions or
event giving rise to such obligations arose, occurred or accrued before or after the Effective Time and (h) any other duty, obligation,
event, condition or liability assumed by Buyer under the terms of this Agreement (collectively, the “Assumed Obligations”).
Buyer’s obligations under this Section 14.02 shall survive the Closing without time limitation.

 

    	(36)

    	 

    

 

Section 14.03 Buyer’s
Indemnification. Provided that the Closing occurs, except for matters for which Seller has an indemnification obligation hereunder,
Buyer shall release, defend, indemnify and hold harmless Seller, its partners, and their respective officers, directors, employees,
agents, partners, representatives, members, shareholders, affiliates, subsidiaries, successors and assigns (collectively, the “Seller
Indemnitees”) from and against any and all claims, damages, liabilities, losses, causes of action, costs and expenses
(including, without limitation, those involving theories of negligence or strict liability and including court costs and attorneys’
fees) (collectively, the “Losses”) to the extent resulting from or arising out of, (a) the Assumed Obligations,
(b) any breach by Buyer of any of Buyer’s representations and warranties contained in Article VI or (c) any breach
by Buyer of its covenants hereunder, REGARDLESS OF WHETHER CAUSED OR CONTRIBUTED TO BY THE SOLE, JOINT, COMPARATIVE OR CONCURRENT
NEGLIGENCE OR STRICT LIABILITY OF ANY OF THE SELLER INDEMNITEES. Buyer’s indemnification obligation under Section 14.03(b)
and Section 14.03(c) (other than as applicable to breaches of Buyer under Sections 3.05(b), 3.08, 4.04(b),
Article IX, 10.02, 10.03, 10.05(a), Article XII, Article XVII and Article XVI
only) shall apply only if Seller has provided Buyer with written notice claiming indemnification under those provisions within
twelve (12) months following Closing and (2) shall only apply after a deductible percentage of two percent (2%) of the Purchase
Price, and then only to the extent of the excess of the claims above the two percent (2%) deductible of the Purchase Price and
(3) shall never exceed a maximum aggregate sum of fifteen percent (15%) of the Purchase Price, inclusive of attorneys’ fees
and all other expenses of litigation.

 

Section 14.04 Seller’s
Indemnification. Provided that the Closing occurs, Seller shall release, defend, indemnify and hold harmless Buyer, its partners,
and their respective officers, directors, employees, agents, partners, representatives, members, shareholders, affiliates, subsidiaries,
successors and assigns (collectively, the “Buyer Indemnitees”) from and against any and all Losses to the extent
resulting from or arising out of (a) the Retained Obligations, (b) any breach by Seller of any of Seller’s representations
and warranties contained in Article V or (c) any breach by Seller of its covenants hereunder, REGARDLESS OF WHETHER CAUSED
OR CONTRIBUTED TO BY THE SOLE, JOINT, COMPARATIVE OR CONCURRENT NEGLIGENCE OR STRICT LIABILITY OF ANY OF THE BUYER INDEMNITEES.
Notwithstanding anything to the contrary contained herein, Seller’s indemnification obligation under Section 14.04(a)
(other than with respect to the Specified Retained Obligations), Section 14.04(b) and Section 14.04(c) (other than
as applicable to breaches of Seller under Sections3.05(b), 3.08, 4.04(b), Article IX, 10.02,
10.03, 10.05(a), Article XII, Article XVI and Article XVII only) (1) shall only apply if Buyer
has provided Seller with written notice claiming indemnification within twelve (12) months of the Closing and (2) shall only apply
after a deductible percentage of two percent (2%) of the Purchase Price, and then only to the extent of the excess of the claims
above the two percent (2%) deductible of the Purchase Price and (3) shall never exceed a maximum aggregate sum of fifteen percent
(15%) of the Purchase Price, inclusive of attorneys’ fees and all other expenses of litigation.

 

    	(37)

    	 

    

  

Section 14.05 Notices
and Defense of Indemnified Matters. Each Party shall promptly notify the other Party of any matter of which it becomes aware
and for which it is entitled to indemnification from the other Party under this Agreement; provided that the delay or failure
of any Party to so notify the indemnified Party shall only reduce the indemnified Party’s claim to the extent such claim
was prejudiced as a result of such delay or failure. The indemnifying Party shall be obligated to defend, at the indemnifying Party’s
sole expense, any litigation or other administrative or adversarial proceeding against the indemnified Party relating to any matter
for which the indemnifying Party has agreed to indemnify and hold the indemnified Party harmless under this Agreement; provided
that the indemnified Party shall not enter into any settlement without the indemnified Party’s consent, not to be unreasonably
withheld or delayed. However, the indemnified Party shall have the right to participate with the indemnifying Party in the defense
of any such matter at its own expense.

 

Section 14.06 Exclusive
Remedies. The Parties acknowledge and agree that, following Closing, the remedies set forth in this Article XIV for
each Party, as limited above in this Article XIV, shall be the exclusive remedies of such Party for any claimed breaches
by the other Party of its representations, warranties, and covenants under this Agreement.

 

Article
XV

Limitations on Representations and Warranties

 

Section 15.01 Disclaimers
of Representations and Warranties. The express representations and warranties of Seller contained in this Agreement are exclusive
and are in lieu of all other representations and warranties, express, implied or statutory. except
for the express representations of seller in this agreement AND THE ASSIGNMENT (including section 2.01 thereof), BUYER
ACKNOWLEDGES THAT SELLER HAS NOT MADE, AND SELLER HEREBY EXPRESSLY DISCLAIMS AND NEGATES, AND BUYER HEREBY EXPRESSLY WAIVES, ANY
REPRESENTATION OR WARRANTY, EXPRESS, IMPLIED, AT COMMON LAW, BY STATUTE OR OTHERWISE RELATING TO (A) PRODUCTION RATES, RECOMPLETION
OPPORTUNITIES, DECLINE RATES, GAS BALANCING INFORMATION OR THE QUALITY, QUANTITY OR VOLUME OF THE RESERVES OF HYDROCARBONS, IF
ANY, ATTRIBUTABLE TO THE ASSETS, (B) THE ACCURACY, COMPLETENESS OR MATERIALITY OF ANY INFORMATION, DATA OR OTHER MATERIALS (WRITTEN
OR ORAL) NOW, HERETOFORE OR HEREAFTER FURNISHED TO BUYER BY OR ON BEHALF OF SELLER AND (C) THE ENVIRONMENTAL CONDITION OF
THE ASSETS. except for the express WARRANTIES
of seller in THIS AGREEMENT AND THE ASSIGNMENT, SELLER EXPRESSLY DISCLAIMS AND NEGATES, AND BUYER HEREBY WAIVES, AS TO PERSONAL
PROPERTY, EQUIPMENT, INVENTORY, MACHINERY AND FIXTURES CONSTITUTING A PART OF THE ASSETS (I) ANY IMPLIED OR EXPRESS WARRANTY OF
MERCHANTABILITY, (II) ANY IMPLIED OR EXPRESS WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE, (III) ANY IMPLIED OR EXPRESS WARRANTY
OF CONFORMITY TO MODELS OR SAMPLES OF MATERIALS, (IV) ANY RIGHTS OF PURCHASERS UNDER APPROPRIATE STATUTES TO CLAIM DIMINUTION OF
CONSIDERATION OR RETURN OF THE PURCHASE PRICE, (V) ANY IMPLIED OR EXPRESS WARRANTY OF FREEDOM FROM DEFECTS, WHETHER KNOWN OR UNKNOWN,
(VI) ANY AND ALL IMPLIED WARRANTIES EXISTING UNDER APPLICABLE LAW AND (VII) ANY IMPLIED OR EXPRESS WARRANTY REGARDING ENVIRONMENTAL
LAWS, THE RELEASE OF MATERIALS INTO THE ENVIRONMENT, OR PROTECTION OF THE ENVIRONMENT OR HEALTH, IT BEING THE EXPRESS INTENTION
OF BUYER AND SELLER THAT, EXCEPT AS PROVIDED IN THIS AGREEMENT AND THE ASSIGNMENT, THE PERSONAL PROPERTY, EQUIPMENT, INVENTORY,
MACHINERY AND FIXTURES INCLUDED IN THE ASSETS SHALL BE CONVEYED TO BUYER, AND BUYER SHALL ACCEPT SAME, AS IS, WHERE IS, WITH ALL
FAULTS AND IN THEIR PRESENT CONDITION AND STATE OF REPAIR AND BUYER REPRESENTS TO SELLER THAT BUYER WILL MAKE OR CAUSE TO BE MADE
SUCH INSPECTIONS WITH RESPECT TO SUCH PERSONAL PROPERTY, EQUIPMENT, INVENTORY, MACHINERY AND FIXTURES AS BUYER DEEMS APPROPRIATE.
SELLER AND BUYER AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE, THE DISCLAIMERS OF CERTAIN WARRANTIES CONTAINED
IN THIS SECTION ARE “CONSPICUOUS” DISCLAIMERS FOR THE PURPOSES OF ANY APPLICABLE LAW, RULE OR ORDER.

 

    	(38)

    	 

    

  

Section 15.02 Independent
Investigation. Buyer represents and acknowledges that it is knowledgeable of the oil and gas business and of the usual and
customary practices of producers such as Seller and that it has had (or will have prior to the Closing) access to the Assets, the
officers and employees of Seller, and the books, records and files of Seller relating to the Assets, and in making the decision
to enter into this Agreement and consummate the transactions contemplated hereby, Buyer will rely solely on the basis of its own
independent due diligence investigation of the Assets and upon the representations and warranties made in Article V, and
not on any other representations or warranties of Seller or any other person or entity.

 

Section 15.03 Survival.
Except as specifically provided otherwise elsewhere in this Agreement, the representations, warranties and covenants of Buyer and
Seller under this Agreement shall survive for a period of twelve (12) months from the Closing. Notwithstanding anything to the
contrary herein, (a) Buyer’s obligation to indemnify under Section 14.03(a) shall survive the Closing without time
limitation, (b) Seller’s obligation to indemnify under Section 14.04(a) with respect to the Specified Retained Obligations
only shall survive the Closing and terminate upon the statute of limitations applicable thereto, (c) the provisions of Article
XV, Article XVI and Article XVII shall survive without time limitation, and (d) the other covenants contained
herein that by their terms are to be performed after the Closing shall survive the Closing on the terms thereof.

 

Article
XVI

Dispute Resolution

 

Section 16.01 General.
Any and all claims, disputes, controversies or other matters in question arising out of or relating to title issues, environmental
issues, or calculation of the Statement or revisions thereto (all of which are referred to herein as “Disputes”
which term shall not include any other disputes, claims, controversies or other matters in question arising under this Agreement)
shall be resolved in the manner prescribed by this Article XVI.

 

    	(39)

    	 

    

  

Section 16.02  Senior
Management. If a Dispute occurs that the senior representatives of the Parties responsible for the transaction contemplated
by this Agreement have been unable to settle or agree upon within a period of fifteen (15) calendar days after such Dispute arose,
Seller shall nominate and commit one of its senior officers, and Buyer shall nominate and commit one of its senior officers, to
meet at a mutually agreed time and place not later than thirty (30) calendar days after the Dispute has arisen to attempt to resolve
same. If such senior management have been unable to resolve such Dispute within a period of fifteen (15) calendar days after such
meeting, or if such meeting has not occurred within forty-five (45) calendar days following such Dispute arising, then either Party
shall have the right, by written notice to the other, to resolve the Dispute through the relevant Independent Expert pursuant to
Section 16.03.

 

Section 16.03  Dispute
by Independent Expert.

 

		(a)	Each Party shall have the right to submit Disputes regarding title issues, environmental issues,
or calculation of the Statement, the Final Statement or revisions thereto, to an independent expert appointed in accordance with
this Section 16.03 (each, an “Independent Expert”), who shall serve as sole arbitrator. The Independent
Expert shall be appointed by mutual agreement of the Parties from among candidates with experience and expertise in the area that
is the subject of such Dispute, and failing such agreement, such Independent Expert for such Dispute shall be selected by the Chief
Judge of the United States District Court for the Southern District of Texas.

 

		(b)	Disputes to be resolved by an Independent Expert shall be resolved in accordance with mutually
agreed procedures and rules and failing such agreement, in accordance with the rules and procedures of the Texas Arbitration Act
and the Rules of the American Arbitration Association to the extent such Rules do not conflict with such Texas Arbitration Act
or the provisions of this Agreement. The Independent Expert shall be instructed by the Parties to resolve such Dispute as soon
as reasonably practicable in light of the circumstances. The decision and award of the Independent Expert shall be binding upon
the Parties as an award under the Federal Arbitration Act and final and nonappealable to the maximum extent permitted by law, and
judgment thereon may be entered in a court of competent jurisdiction and enforced by any Party as a final judgment of such court.

 

		(c)	The charges and expenses of the arbitration (including, without limitation, the Independent Expert)
shall be shared equally by Seller and Buyer.

 

		(d)	Any arbitration hearing held pursuant to Section 16.03 shall be held in Midland, Texas.

 

    	(40)

    	 

    

 

Section 16.04 Limitation
on Arbitration. ALL OTHER DISAGREEMENTS, DIFFERENCES, OR DISPUTES ARISING BETWEEN SELLER AND BUYER UNDER THE TERMS OF THIS
AGREEMENT (AND NOT COVERED BY SECTION 16.03) SHALL NOT BE SUBJECT TO ARBITRATION AND SHALL BE DETERMINED BY A COURT OF COMPETENT
JURISDICTION, UNLESS THE PARTIES OTHERWISE MUTUALLY AGREE.

 

Article
XVII

Miscellaneous

 

Section 17.01 Names.
As soon as reasonably possible after the end of the Term in the Transition Services Agreement, but in no event later than sixty
(60) calendar days after the end of the Term in the Transition Services Agreement, Buyer shall remove the names of Seller and its
affiliates, and all variations thereof, from all of the Assets and make the requisite filings with, and provide the requisite notices
to, the appropriate federal, state or local agencies to place the title or other indicia of ownership, including operation of the
Assets, in a name other than the name of Seller or any of its affiliates, or any variations thereof.

 

Section 17.02 Expenses.
Except as otherwise expressly set forth in this Agreement, each Party shall be solely responsible for all expenses, including due
diligence expenses, incurred by it in connection with this transaction, and neither Party shall be entitled to any reimbursement
for such expenses from the other Party.

 

Section 17.03 Document
Retention. As used in this Section 17.03, the term “Documents” shall mean all files, documents, books,
records and other data delivered to Buyer by Seller pursuant to the provisions of this Agreement (other than those that Seller
has retained either the original or a copy of), including, but not limited to: financial and tax accounting records; land, title
and division of interest files; contracts; engineering and well files; and books and records related to the operation of the Assets
prior to the Closing Date. Prior to the Closing, Seller or its representatives shall have the right to make and retain copies of
the Documents at its or their expense.

 

Section 17.04 Entire
Agreement. This Agreement, the documents to be executed hereunder, and the exhibits attached hereto constitute the entire agreement
between the Parties pertaining to the subject matter hereof and supersede all prior agreements, understandings, negotiations and
discussions, whether oral or written, of the Parties pertaining to the subject matter hereof. No supplement, amendment, alteration,
modification or waiver of this Agreement shall be binding unless executed in writing by the Parties and specifically referencing
this Agreement.

 

Section 17.05 Waiver.
No waiver of any of the provisions of this Agreement shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar), nor shall such waiver constitute a continuing waiver unless otherwise expressly provided.

 

Section 17.06 Publicity.
Neither Seller nor Buyer will issue any public announcement or press release concerning this transaction without the written consent
of the other Party (except as required by law or the applicable rules or regulations of any Governmental Authority or stock exchange,
and in such case the Parties shall consult with each other with regard to the wording of the announcement or press release).

 

    	(41)

    	 

    

  

Section 17.07Construction.
The captions in this Agreement are for convenience only and shall not be considered a part of or affect the construction or interpretation
of any provision of this Agreement. The Parties acknowledge that they have participated jointly in the negotiation and drafting
of this Agreement and as such the Parties agree that if an ambiguity or question of intent or interpretation arises hereunder,
this Agreement shall not be construed more strictly against one Party than another on the grounds of authorship.

 

Section 17.08No
Third Party Beneficiaries. Except as provided in Sections 14.03 and 14.04, nothing in this Agreement shall provide
any benefit to any Third Party or entitle any Third Party to any claim, cause of action, remedy or right of any kind, it being
the intent of the Parties that this Agreement shall otherwise not be construed as a Third Party beneficiary contract.

 

Section 17.09Assignment.
No Party may assign or delegate any of its rights or duties hereunder without the prior written consent of the other Party, and
any such assignment shall be void. Except as otherwise provided herein, this Agreement shall be binding upon and inure to the benefit
of the Parties hereto and their respective permitted successors, assigns and legal representatives.

 

Section 17.10Governing
Law. This Agreement, other documents delivered pursuant hereto and the legal relations between the Parties shall be governed
and construed in accordance with the laws of the State of Texas, without giving effect to principles of conflicts of laws that
would result in the application of the laws of another jurisdiction.

 

Section 17.11Notices.
Any notice, communication, request, instruction or other document required or permitted hereunder shall be given in writing and
delivered in person or sent by U.S. Mail postage prepaid, return receipt requested, nationally recognized, receipt overnight courier,
email or facsimile to the addresses of Seller and Buyer set forth below. Any such notice shall be effective only upon receipt.

 

	 	Seller:	
        CrownRock, L.P.

        P.O. Box 53310

        Midland, Texas 79701

        Attn: Robert W. Floyd

        Phone: 432-818-0300

        Fax: 432-687-4804

         

	 	Buyer:	
        Greg Brown

        c/o BreitBurn Management Company, LLC

        515 S. Flower Street, Ste. 4800

        Los Angeles, CA 90071

        Fax: (213) 225-5916 

 

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

 

    	(42)

    	 

    

 

Section 17.12Severability.
If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect and the Parties
shall negotiate in good faith to modify this Agreement so as to effect their original intent as closely as possible in an acceptable
manner to the end that the transactions contemplated hereby are fulfilled to the extent possible.

 

Section 17.13Time
of the Essence. Time shall be of the essence with respect to all time periods and notice periods set forth in this Agreement.

 

Section 17.14Counterpart
Execution. This Agreement may be executed in any number of counterparts, and each counterpart hereof shall be effective as
to each party that executes the same whether or not all of such parties execute the same counterpart. If counterparts of this Agreement
are executed, the signature pages from various counterparts may be combined into one composite instrument for all purposes. All
counterparts together shall constitute only one Agreement, but each counterpart shall be considered an original. Any counterpart
submitted or transmitted via facsimile or email shall have the same force and effect as an original manually executed counterpart.

 

Section 17.15Jury
Trial Waiver. SELLER AND BUYER HEREBY EXPRESSLY AND KNOWINGLY WAIVE ANY AND ALL RIGHTS TO TRIAL BY JURY OF ANY AND ALL CLAIMS
AND CAUSES OF ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT, INCLUDING, WITHOUT LIMITATION, ANY AND ALL CLAIMS AND
CAUSES OF ACTION IN ANY WAY BASED UPON OR RELATING TO THE NEGOTIATION, FORMATION, CONSTRUCTION, INTERPRETATION, ENFORCEABILITY,
PERFORMANCE, AND/OR BREACH OF THIS AGREEMENT.

 

    	(43)

    	 

    

 

Section 17.16  Financial
Statements.

 

		(a)	Seller
                                         acknowledges that full carve out audited financial statements are not available for the
                                         subject properties and that full carve out financial statements are impracticable for
                                         Seller to prepare. Seller will deliver a letter to Buyer at closing stating that full
                                         carve out audited financial statements are not available and are impracticable
                                         for Seller to prepare. Seller will prepare
                                         statements of revenues and direct operating expenses and supplemental reserve disclosures
                                         including proved reserve tables and the standardized measure of discounted cash flows
                                         as required by the Securities Exchange Commission (“SEC”) by
                                         Buyer pursuant to the Securities Act of 1933, as amended (the “Securities
                                         Act”), or the Securities Exchange Act of 1934, as amended (the “Exchange
                                         Act”), and that such statements
                                         of revenues and direct operating expenses will
                                         be audited so that they comply with the requirements of a registration statement under
                                         the Securities Act, report or other filing under the Exchange Act and the rules set forth
                                         in Regulation S-X. As soon as practicable, but no later than February 21, 2014 at 5:00
                                         p.m. Central Standard Time, Seller will have prepared and will deliver, at Buyer’s
                                         expense, audited statements of revenues and direct operating expenses applicable to the
                                         Assets for the calendar year 2012, along with unaudited interim quarterly periods for
                                         the first three quarters of 2012 and 2013. Seller shall deliver or cause to be delivered,
                                         to Seller’s auditor such representation letters, in form and substance customary
                                         for representation letters provided to external audit firms by Seller (if the financial
                                         statements are subject of an audit or are the subject of a review pursuant to Statements
                                         of Accounting Standards 100 (Interim Financial Information)), as may be reasonably requested
                                         by Seller’s Auditor, with respect to the statement of revenues and direct operating
                                         expenses. Also by February 21, 2014, Seller will have prepared and delivered, at Buyer’s
                                         expense, a separate unaudited statement of revenues and direct operating expenses applicable
                                         to the Assets for the partial interim quarterly period for the fourth quarter of 2013,
                                         (i.e., beginning on October 1, 2013 and ending with the Closing Date of December 30,
                                         2013), and for the fourth quarter of 2012, and any other financial information necessary
                                         to comply with the requirements of a registration statement under the Securities Act,
                                         report or other filing under the Exchange Act and the rules set forth in Regulation S-X
                                         (the “Financial Statements”). In addition, by January 31, 2014, Seller
                                         shall provide Buyer with lease operating statements for the fourth quarter of 2013. Seller
                                         shall cooperate with, assist, and provide relevant information to, Tag Along Rights holders
                                         who elect to sell Tag Along Assets and any non-operators of the Assets who elect
                                         to sell their non-operating interests to Buyer in the preparation of such Tag Along Rights
                                         holders’ or non-operators’ Financial Statements.

 

		(b)	Seller
                                         agrees to consent to the inclusion or incorporation by reference of the statements of
                                         revenues and direct operating expenses and all supplemental information therein in any
                                         registration statement, report, or other document of Buyer to be filed with the SEC upon
                                         receipt of written notice from Buyer’s counsel that the statements of revenues
                                         and direct operating expenses and all supplemental information therein are required to
                                         be included or incorporated by reference to satisfy
                                         any rule or regulation of the SEC or to satisfy relevant financial disclosure obligations
                                         under the Securities Act or the Exchange Act. Upon request of Buyer, Seller agrees to
                                         request the external audit firm that audits the statements of revenues and direct operating
                                         expenses (the “Audit Firm”) to consent to the inclusion or incorporation
                                         by reference of its audit opinion with respect to the audited statements of revenues
                                         and direct operating expenses in any such registration statement, report or other document
                                         and provide to the Audit Firm such customary representation letters as may be reasonably
                                         requested by the Audit Firm. Seller shall (i) provide Buyer and Buyer’s independent
                                         accountants with access to management by
                                         Seller to Seller’s independent accountants to the extent applicable to the Assets
                                         and (ii) authorize Seller’s Audit Firm to provide such Audit Firm’s consent
                                         to the incorporation of the audited statements of revenues and direct operating expenses
                                         by reference to satisfy any rule or regulation of the SEC or to satisfy relevant financial
                                         disclosure obligations under the Securities Act or the Exchange Act.

 

THIS SPACE INTENTIONALLY LEFT BLANK/

SIGNATURES ON FOLLOWING PAGE

 

    	(44)

    	 

    

 

IN WITNESS WHEREOF, Seller and Buyer have
executed and delivered this Agreement as of the date first set forth above.

 

	 	SELLER:
	 	CrownRock, L.P.
	 	By:  CrownRock GP, LLC, its general partner
	 	 	 
	 	By:	/s/ Robert W. Floyd
	 	Name:  Robert W. Floyd
	 	Title:    President
	 	 
	 	BUYER:
	 	BreitBurn Operating L.P.
	 	By:  	BreitBurn Operating GP, LLC,
	 	 	its general partner
	 	 	 
	 	By:	/s/ Halbert S. Washburn
	 	Name:  Halbert S. Washburn
	 	Title: Chief Executive Officer

 

Signature Page to

Purchase and
Sale AgreementExhibit 10.2

 

FORM OF MANAGEMENT SERVICES AGREEMENT

 

    	 

    	 

    

 

MANAGEMENT SERVICES AGREEMENT

 

BY AND AMONG

 

AECP MANAGEMENT, LLC,

an Oklahoma Limited Liability Company

 

AMERICAN ENERGY CAPITAL PARTNERS, LP

a Delaware Limited Partnership

 

AND

 

AECP OPERATING COMPANY, LLC

a Delaware Limited Liability Company and

Wholly Owned Subsidiary of AECP LP

 

Dated [●], 2013

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	ARTICLE I Defined Terms, Interpretation	1
	 	 	 
	Section 1.1	Defined Terms	1
	 	 	 
	Section 1.2	References and Titles	12
	 	 	 
	ARTICLE II Management Services	12
	 	 	 
	Section 2.1	Engagement of Manager	12
	 	 	 
	Section 2.2	Direction of Result of Management Services	12
	 	 	 
	Section 2.3	Management Standards	13
	 	 	 
	Section 2.4	Records; Financial Reports; Instruments of Service	13
	 	 	 
	Section 2.5	Certain Limitations on Management Services	13
	 	 	 
	Section 2.6	Well Operations	14
	 	 	 
	ARTICLE III Financial Administration	14
	 	 	 
	Section 3.1	Budget.	14
	 	 	 
	Section 3.2	Cash Management	15
	 	 	 
	Section 3.3	Revenues and Joint Interest Billings	15
	 	 	 
	Section 3.4	Manager Payments	16
	 	 	 
	Section 3.5	Payment to Owner	16
	 	 	 
	ARTICLE IV Contract Administration; Power of Attorney	16
	 	 	 
	Section 4.1	Contract Administration	16
	 	 	 
	Section 4.2	Purchases for the Owner	16
	 	 	 
	Section 4.3	Affiliate Transactions	16
	 	 	 
	Section 4.4	Power of Attorney	17
	 	 	 
	ARTICLE V Compensation and Expenses	17
	 	 	 
	Section 5.1	Management Fee	17
	 	 	 
	Section 5.2	Reimbursement of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses	18
	 	 	 
	Section 5.3	Acquisition Fee and Acquisition Expenses	19
	 	 	 
	Section 5.4	Disposition Fee and Disposition Expenses	20
	 	 	 
	Section 5.5	Financing Coordination Fee	21
	 	 	 
	ARTICLE VI Representations, Warranties and Covenants	22
	 	 	 
	ARTICLE VII Additional Agreements of Manager; Restrictions on Manager	23
	 	 	 
	Section 7.1	Compliance with Laws	23
	 	 	 
	Section 7.2	Compliance with Obligations	23

 

    	i

    	 

    

 

	Section 7.3	Prohibited Acts	23
	 	 	 
	Section 7.4	Emergencies	25
	 	 	 
	Section 7.5	Manager’s Insurance	25
	 	 	 
	ARTICLE VIII Personnel Administration	26
	 	 	 
	Section 8.1	General	26
	 	 	 
	Section 8.2	Responsibility	26
	 	 	 
	ARTICLE IX Investment Opportunities	26
	 	 	 
	Section 9.1	Investment Opportunities.	26
	 	 	 
	Section 9.2	Initial Budget; Revisions to Budget.	27
	 	 	 
	ARTICLE X Term; Termination	27
	 	 	 
	Section 10.1	Term	27
	 	 	 
	Section 10.2	Termination	28
	 	 	 
	Section 10.3	Transition Services	28
	 	 	 
	Section 10.4	Effect of Termination	29
	 	 	 
	ARTICLE XI Indemnification; Liability of the Parties	29
	 	 	 
	Section 11.1	Indemnification	29
	 	 	 
	Section 11.2	EXTENT OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE	30
	 	 	 
	Section 11.3	Indemnification Procedure	30
	 	 	 
	Section 11.4	Limitation on Consequential and Other Damages	30
	 	 	 
	Section 11.5	Manager Liability	31
	 	 	 
	Section 11.6	Conspicuous	31
	 	 	 
	ARTICLE XII Force Majeure	31
	 	 	 
	ARTICLE XIII Miscellaneous	32
	 	 	 
	Section 13.1	Time	32
	 	 	 
	Section 13.2	Independent Contractor	32
	 	 	 
	Section 13.3	Notices	32
	 	 	 
	Section 13.4	Cooperation	33
	 	 	 
	Section 13.5	No Third Party Beneficiaries	34
	 	 	 
	Section 13.6	Cumulative Remedies	34
	 	 	 
	Section 13.7	Governing Law; Jurisdiction; Waiver of Jury Trial	34
	 	 	 
	Section 13.8	Entire Agreement	34
	 	 	 
	Section 13.9	Assignment	34
	 	 	 
	Section 13.10	Amendment	35
	 	 	 
	Section 13.11	Severability	35

 

    	ii

    	 

    

 

	Section 13.12	Waiver	35
	 	 	 
	Section 13.13	Counterparts; Facsimiles; Electronic Transmission	35
	 	 	 
	Section 13.14	Corporate Opportunity	35
	 	 	 
	Section 13.15	Joint Acknowledgement	36
	 	 	 
	EXHIBITS:	 	 
	 	 	 
	Exhibit A	Scope of Services	A-1
	 	 	 
	Exhibit B	Insurance	B-1
	 	 	 
	Exhibit C	Cost Reimbursement	C-1
	 	 	 
	Exhibit D	Operating Agreement	D-1

 

    	iii

    	 

    

 

MANAGEMENT SERVICES AGREEMENT

 

This MANAGEMENT SERVICES
AGREEMENT (this “Agreement”), dated as of [•] [•], 2013 and effective for all purposes as of
the [___] day of ____________, 2013 (the “Effective Date”), is by and among AECP
MANAGEMENT, LLC, an Oklahoma limited liability company (the “Manager”), American
Energy CAPITAL PARTNERS, LP, a Delaware limited partnership (“AECP LP”), and AECp
OPERATING COMPANY, LLC, a Delaware limited liability company and a wholly owned subsidiary of AECP LP (the “Owner”).
The Manager, AECP LP and Owner are referred to herein individually as a “Party,” and collectively as
the “Parties.” Capitalized terms used but not defined herein shall have the meanings assigned to such
terms in Article I.

 

BACKGROUND:

 

A.           AECP
GP is the sole general partner of AECP LP; and

 

B.           The
Owner is engaged in the Business; and

 

C.           The
Manager is experienced and skilled in the conduct of business in the oil and gas acquisition, exploration, development and production
industry, and has the ability to provide technical, commercial, financing and management services that may be necessary or useful
to the Owner; and

 

D.           The
Owner desires to engage the Manager to perform and provide, and the Manager desires to perform and provide for and on behalf of
the Owner, the Services as set forth herein and in accordance with the terms and conditions hereof.

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

 

ARTICLE
I

Defined Terms, Interpretation

 

Section 1.1           Defined
Terms. As used in this Agreement, each of the following terms has the meaning given in this Section 1 as follows:

 

“Acquisition
Expenses” means any and all expenses, including but not limited to legal fees and expenses, travel and communications
expenses, financial advisory fees, brokerage fees, costs of appraisals, engineering fees and expenses, nonrefundable option payments
on property not acquired, accounting fees and expenses, title insurance premiums and the costs of performing due diligence (including,
without limitation, title, environmental and similar due diligence), but excluding Acquisition Fees, in each case incurred by AECP
LP, the Owner, the Manager or any of their Affiliates in connection with the selection, evaluation, acquisition, origination, making
or development of any Property Acquisition, whether or not acquired.

 

“Acquisition
Fee” means the fee payable to the Manager pursuant to Section 5.3.

 

    	 

    	 

    

 

“AECP
GP” means American Energy Capital Partners, GP LLC, a Delaware limited liability company and the general partner
of AECP LP.

 

“AECP
LP” has the meaning specified in the introductory paragraph.

 

“Affiliate”
means, with respect to any Person, each other Person that directly or indirectly (through one or more intermediaries or otherwise)
controls, is controlled by, or is under common control with such Person, provided, however, that the Parties specifically
acknowledge and agree that for purposes of this Agreement neither AECP GP nor the Owner is an Affiliate of the Manager.

 

“Agreement”
means this Agreement, as amended, supplemented or modified from time to time.

 

“Approved
Credit Facility” means a revolving or other credit facility entered into by AECP LP, the Owner or a Subsidiary of
the Owner.

 

“Assets”
means (a) the Leases; (b) the Wells; (c) all royalty, overriding royalty, production payments, net profits interests and other
interests in oil and gas properties owned by the Owner and its Subsidiaries; (d) all tangible personal property, equipment,
machinery, inventory, supplies, spare parts, fixtures and improvements that are a part of any Lease or Well or are owned by or
in the possession of the Owner and its Subsidiaries; and (e) all files, records and business data that relate to any Lease or Well
or any of the business of the Owner and its Subsidiaries.

 

“Bankruptcy”
means, with respect to any Person, the occurrence of any of the following events, conditions or circumstances: (i) such Person
shall file a voluntary petition in bankruptcy or shall be adjudicated as bankrupt or insolvent, or shall file any petition or answer
or consent seeking any reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief for itself
under the United States Bankruptcy Reform Act of 1978 (the “Bankruptcy Code”) or any present or future
applicable federal, state or other statute or Law relating to bankruptcy, insolvency, reorganization or other relief for debtors,
or shall seek or consent to, or acquiesce in, the appointment of any trustee, receiver, conservator or liquidator of such Person
or of all or any substantial part of its properties (the term “acquiesce,” as used in this definition, includes the
failure to file a petition or motion to vacate or discharge any order, judgment or decree within 20 days, after entry of such order,
judgment or decree); (ii) an involuntary case or other proceeding shall be commenced against such Person seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar relief with respect to such Person or its debts under
the Bankruptcy Code or any present or future applicable federal, state or other statute or Law relating to bankruptcy, insolvency,
reorganization or other relief for debtors, or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar
official of it or any substantial part of its property, and such involuntary case or other proceeding shall remain undismissed
or unstayed for a period of 90 consecutive days, (iii) a court of competent jurisdiction shall enter an order, judgment or decree
approving a petition filed against such Person seeking a reorganization, arrangement, composition, readjustment, liquidation, dissolution
or similar relief under the Bankruptcy Code, or any other present or future applicable federal, state or other statute or law relating
to bankruptcy, insolvency, reorganization or other relief for debtors, and such Person shall acquiesce in the entry of such order,
judgment or decree or such order, judgment or decree shall remain unvacated and unstayed for an aggregate of 90 days (whether or
not consecutive) from the date of entry thereof, or any trustee, receiver, conservator or liquidator of such Person or of all or
any substantial part of its property shall be appointed without the consent or acquiescence of such Person and such appointment
shall remain unvacated and unstayed for an aggregate of 90 days (whether or not consecutive); (iv) such Person shall admit in writing
its inability to pay its debts as they mature or shall generally not be paying its debts as they become due; or (v) such Person
shall make a general assignment for the benefit of creditors or take any other similar action for the protection or benefit of
creditors.

 

    	2

    	 

    

 

“Basket
Amount” means the following: (i) prior to 90 days following the second Fiscal Year after the occurrence of the Full
Investment Date, 2.0% of the aggregate capital contributions to AECP LP made on or before such date, and (ii) after 90 days following
the second Fiscal Year after the occurrence of the Full Investment Date, 2.0% of the after tax present value, discounted at 10%,
of the cash flows attributable to AECP LP’s consolidated estimated net proved reserves as set forth in AECP LP’s financial
statements filed with the Securities and Exchange Commission.

 

“Budget”
means the budget approved pursuant to Section 3.1(a), as amended and revised from time to time in accordance with Section
3.1(b).

 

“Business”
of the Owner and its subsidiaries is (a) to acquire, hold, maintain, renew, drill, develop, operate and sell working interests,
net profits interests, leasehold interests, royalties, and other types of oil and gas interests and/or equity interests in corporate,
limited liability company or partnership entities owning oil and gas interests; (b) to produce, collect, store, treat, deliver,
market, sell, farm-out or otherwise dispose of oil, gas and related hydrocarbons and minerals from its properties and interests;
and (c) to take all such other actions incidental to any of the foregoing as may be necessary or desirable.

 

“Business
Day” means any day other than Saturday or Sunday or any day on which commercial banks in Oklahoma City, Oklahoma
or New York, New York are authorized or required by law to close.

 

“Calendar
Month” means any of the months in the Gregorian calendar.

 

“Calendar
Quarter” means the calendar quarter of each Calendar Year ending March 31, June 30, September 30 and December
31.

 

“Calendar
Year” means a 12 consecutive Calendar Month period commencing on January 1, but the first Calendar Year will begin
on the Effective Date and the last Calendar Year will end on the date Owner is dissolved.

 

“Common
Units” means common units consisting of limited partner interests of AECP LP issued by the Partnership to Investors
in the Offering.

 

    	3

    	 

    

 

“Company
Agreement” means the First Amended and Restated Limited Liability Company Agreement of AECP GP, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Contract
Purchase Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when paid by AECP LP or the Owner in connection with the acquisition from any seller(s) of any
Property Acquisition. With respect to any acquisition that consists, in whole or in part, of the contribution to AECP LP or the
Owner by the owner(s) of the property Acquisition in consideration for equity interests of AECP LP, such equity interests shall
be determined to have the fair market value mutually agreed by AECP GP and the Manager.

 

“Contract
Sales Price” means the total consideration, including any “carried interest” consideration or deferred
or “earn-out” payments when received by AECP LP or the Owner for the sale or other disposition of any Assets (other
than sales of oil, gas and other hydrocarbons produced from the Assets in the ordinary course of business). With respect to any
sale or disposition of Assets that consists, in whole or in part, of the receipt by AECP LP or the Owner of non-cash consideration,
such non-cash consideration shall be determined to have the fair market value mutually agreed by AECP GP and the Manager.

 

“Control”
(including collective meanings, “controlling,” “controlled by” and “under
common control with”) means the possession, directly or indirectly, of the power to direct or cause the direction
of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

 

“Dealer
Manager” means Realty Capital Securities, LLC, or such other Person selected by AECP GP to act as the dealer manager
of the Offering.

 

“Dealer
Manager Fee” means a fee of three percent (3.0%) of the Gross Proceeds that is payable to the Dealer Manager for
serving as the dealer manager of the Offering.

 

“Default
Amount” has the meaning specified in Section 5.3.

 

“Default
Rate” means, on the date of determination, the Prime Rate (as published in the “Money Rates” table of
the Wall Street Journal, eastern edition) plus an additional 2.0 percentage points (that is, 200 basis points; or, if such rate
is at any time contrary to any applicable Law, then “Default Rate” shall be reduced to mean the maximum
rate permitted by applicable Law).

 

“Development
Activities” means all operations and activities related to the development of the Assets, including the drilling
of any Development Wells, recompletions, workovers and operations subsequent to a well reaching its objective depth on any Lease
or other prospect held by the Owner or its subsidiaries and related proposals, activities and operations required to commence and
sustain production from such well(s), including the design, fabrication or other acquisition, and installation, of a related development
system.

 

    	4

    	 

    

 

“Development
Well” means a well drilled within the proved area of an oil or gas reservoir to the depth of a stratigraphic horizon
known to be productive.

 

“Disposition
Expenses” means any and all expenses, exclusive of Disposition Fees, incurred by AECP LP, the Owner, the Manager
or any of their Affiliates in connection with the sale or other disposition, or proposed sale or other disposition, of all or any
portion of the Assets (other than the sale of oil, gas or other hydrocarbons produced from the Assets) , whether or not sold or
otherwise disposed of, including, without limitation, legal fees and expenses, travel and communications expenses, brokerage fees,
costs of appraisals, engineering fees and expenses, accounting fees and expenses, title insurance premiums and the costs of performing
due diligence.

 

“Disposition
Fee” means the fee payable to the Manager pursuant to Section 5.4.

 

“Draft
Budget” has the meaning specified in Section 3.1(a).

 

“DRULPA”
means the Delaware Revised Uniform Limited Partnership Act or any successor statute, as amended from time to time.

 

“Economic
Run” means data and other information, delivered in written or electronic formats, necessary to present a base case,
an upside case and a downside case economic analysis of a Property Acquisition, including, at a minimum and without limitation,
the following:

 

(a)          Cash
flow financial model analysis, including:

 

(i)          a
calculation of the Property Acquisition internal rate of return using such assumptions with respect to leverage, debt amortization
and general and administrative expenses and management fees as Manager and Owner mutually agree at any time and from time to time
are appropriate for financial modeling purposes with respect to Property Acquisitions; and

 

(ii)         projected
financial results from the Property Acquisition;

 

(b)          supporting
property-level reserve reports prepared by either qualified internal or independent reserve engineers as determined by the Manager
in its discretion; and

 

(c)          a
cash flow analysis showing the projected impact of the Property Acquisition on the projected cash flow of the Owner.

 

“Effective
Date” has the meaning specified in the introductory paragraph of this Agreement.

 

    	5

    	 

    

 

“Emergency”
means any sudden or unexpected event which causes, or risks causing, (a) substantial damage to any Asset or the property of a Third
Party, or (b) death of or injury to any Person, (c) damage or substantial risk of damage to natural resources (including wildlife)
or the environment, (d) safety concerns associated with continued operations or (e) non-compliance with applicable Law, in each
case which event is of such a nature that a response cannot, in the reasonable discretion of Manager, await the decision of Owner.
For the avoidance of doubt, an “Emergency” shall include any release or threatened release of Hazardous Substances
into the environment that requires notification to any Governmental Authority under applicable Law.

 

“Employee”
means each employee or individual independent contractor of Manager.

 

“Expense
Cap” has the meaning specified in Section 5.2(a).

 

“Financing
Coordination Fee” has the meaning specified in Section 5.5.

 

“Force
Majeure Event” means any cause or event not reasonably within the control of the Party whose performance is sought
to be excused thereby including the following causes and events (solely to the extent such causes and events are not reasonably
within the control of the Party claiming suspension), which list of events is not exhaustive: acts of God, strikes, lockouts, or
other industrial disputes or disturbances, acts of the public enemy, wars, blockades, insurrections, civil disturbances and riots,
epidemics, landslides, lightning, earthquakes, fires, tornadoes, hurricanes, storms, floods, washouts, excessive rainfall and warnings
for any of the foregoing which may necessitate the precautionary shut-down of wells, plants, pipelines, gathering systems, or other
related facilities; arrests, orders, directives, restraints and requirements of governments and government agencies, either federal
or state, civil and military; outages (shutdown) for the making of repairs, alterations, relocations or inspections; inability
to secure labor or materials, inclement weather that necessitates extraordinary measures and expense to construct facilities or
maintain operations, or any other causes, whether of the kind enumerated herein or otherwise, not reasonably within the control
of the Party claiming suspension. Such term shall likewise include, in those instances where either Party is required to obtain
servitudes, rights-of-way, grants, permits, or licenses to enable such Party to fulfill its obligations hereunder, the inability
of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise of reasonable
diligence, such servitudes, rights-of-way, grants, permits or licenses, and in those instances where either Party hereto is required
to secured permits or permissions from any Governmental Authority to enable such Party to fulfill its obligations hereunder, the
inability of such Party to acquire, or delays on the part of such Party in acquiring, at reasonable cost and after the exercise
of reasonable diligence, such permits and permissions.

 

“Full
Investment Date” means the date on which AECP LP has invested, committed for investment or otherwise spent 90% or
more of the aggregate capital contributions (net of the Dealer Manager Fee, Selling Commissioners, volume discounts, any marketing
expenses, due diligence expenses and Organization and Offering Expenses) received by AECP LP from the Offering.

 

“FWPP”
means the Chesapeake Energy Corporation Founders Well Participation Program, dated as of June 10, 2005.

 

    	6

    	 

    

 

“FWPP
Assets” shall mean any assets or properties acquired by Aubrey K. McClendon, directly or through any of his Affiliates
or by his spouse, in connection with or pursuant to the FWPP.

 

“FWPP
Opportunity” shall mean any right of Aubrey K. McClendon or any entity of which he is an Affiliate to acquire a working
interest in any oil and gas property pursuant to the FWPP.

 

“GAAP”
means generally accepted accounting principles, as recognized by the U.S. Financial Accounting Standards Board (or any generally
recognized successor).

 

“General
Parameters” means the general parameters for a Property Acquisition as the Manager and Owner may mutually agree at
any time and as same may thereafter be amended, modified or superseded by mutual agreement of the Manager and Owner, which general
parameters shall include, without limitation, general parameters for terms and conditions of Property Acquisitions with respect
to title, environmental, other liabilities, indemnification, gas imbalances, conditions to closing and other matters mutually determined
to be appropriate.

 

“General
Partner” means AECP GP, in its capacity as the general partner of AECP LP.

 

“Governmental
Authority” means any federal, national, regional, state, municipal or local government, any political subdivision
or any governmental, judicial, public or statutory instrumentality, tribunal, court, arbitral panel, or other regulatory bureau,
authority, body or entity having legal jurisdiction over the matter or Person in question.

 

“Gross
Proceeds” means the aggregate sales price of all Common Units issued by AECP LP to Investors in the Offering, without
deduction for the Dealer Manager Fee, Selling Commissions, volume discounts, any marketing expense and due diligence expense reimbursement
or Organization and Offering Expenses.

 

“Hazardous
Substances” means any pollutants, contaminants, toxic or hazardous substances, materials, wastes, constituents, compounds
or chemicals that are regulated by, or may form the basis of liability under any environmental Laws, including asbestos-containing
materials (but excluding any NORM).

 

“Hedging
Policy” means a policy or policy with respect to Hedges that Owner approves as the Hedging Policy of the Owner from
time to time.

 

“Hedges”
means any commodity futures contract, commodity swap, commodity option, commodity forward sale, commodity put, call or collar or
other similar agreement or arrangement designed to protect against fluctuations in the price of oil, gas or other hydrocarbons
used, sold or produced by a person.

 

“Holdings”
means AECP Holdings, LLC, an affiliate of the Manager.

 

    	7

    	 

    

 

“Initial
Closing” means the initial closing of the purchase of Common Units from AECP LP by Investors pursuant to the Offering.

 

“Initial
Purchase Price” means $20.00, the amount paid by the Investors to AECP LP to purchase Common Units in the Offering.

 

“Initial
Term” has the meaning specified in Section 10.1.

 

“Insured”
has the meaning specified in Section 7.5.

 

“Investors”
means Purchasers of Common Units from AECP LP pursuant to the Offering.

 

“Invoice”
has the meaning specified in Section 5.1.

 

“Joint
Venture” means any partnership, limited partnership or other arrangements with a Person(s) other than AECP LP or
the Owner in which AECP LP or the Owner is a member, partner or co-venturer and which is established to own, operate or develop
Property Acquisitions.

 

“Law”
means any and all applicable laws, statutes, ordinances, permits, decrees, rulings, writs, injunctions, orders, codes, judgments,
principles of common law, rules or regulations which are promulgated, issued or enacted by a Governmental Authority having jurisdiction.

 

“Lease
Operations” means all necessary or useful lease and land administration services and maintaining all land, lease
and other related records (including title to the Owner’s Assets and the maintenance and curing of the same) and all technical,
regulatory, permitting and marketing supervision and oversight determined by the Manager to be necessary or appropriate to assure
that the Owner’s Assets are being explored, developed, produced, gathered and operated in accordance with this Agreement,
including the Exhibits hereto, and applicable contracts and agreements.

 

“Leases”
means the oil, gas and mineral leases and operating rights now owned or hereafter participated in or acquired by the Owner as of
the date of determination.

 

“Listing
Date” has the meaning assigned to such term in the Partnership Agreement.

 

“Loan(s)”
means any indebtedness or obligation in respect of borrowed money or evidenced by bonds, notes, debentures, deeds of trust, letters
of credit, volumetric production payments, or similar instruments, including secured loans and mezzanine loans.

 

“Management
Services” has the meaning specified in Exhibit A.

 

“Manager”
has the meaning specified in the introductory paragraph of this Agreement.

 

    	8

    	 

    

 

“Manager
Indemnified Parties” has the meaning specified in Section 11.1.

 

“Manager
Personnel” means the officers and employees of the Manager, the officers and employees of Affiliates of the Manager,
and all other persons otherwise engaged by the Manager for the provision of the Management Services hereunder.

 

“Material
Adverse Effect” shall mean any event, circumstance, change or effect (a) that is material and adverse to the business,
assets, properties, liabilities, financial condition or results of operations of AECP, the Owner and any subsidiaries thereof,
determined on a consolidated basis, if applicable.

 

“Material
Commitment” means any agreement, contract or other arrangement binding on Owner or any of its subsidiaries which
could reasonably be expected to result in payments by the Owner or any of its subsidiaries of more than the Basket Amount then
in effect or that AECP GP or Owner advises the Manager would otherwise qualify as a material contract under Regulation S-K of the
Securities Act of 1933.

 

“Monthly
Management Fee” has the meaning specified in Section 5.1.

 

“NASAA
Guidelines” means the guidelines adopted September 22, 1976 by the North American Securities Administrators Association,
Inc. relating to the registration of Oil and Gas Programs, as amended and in effect at the time the determination is made pursuant
to this Agreement.

 

“Offering”
means the best efforts registered public offering of Common Units consisting of (i) a minimum offering of 100,000 Common Units
at the Initial Purchase Price per Common Unit for Gross Proceeds of $2.0 million at the Initial Purchase and (ii) a maximum
offering of 100.0 million Common Units for Gross Proceeds of up to $2.0 billion.

 

“Operating
Agreement” means (i) the operating agreements, gas balancing agreements, and participation agreements (including
the applicable Accounting Procedures) which relate to the Assets or any of the Leases and other agreements governing the drilling
and operation of and accounting for the Leases, and (ii) with respect to Leases owned entirely by the Owner, the form of operating
agreement attached as Exhibit D.

 

“Operator”
means the person appointed as Operator of any Asset owned by Owner pursuant to an Operating Agreement, which shall be (a) the Manager
or an Affiliate of the Manager with respect to Assets operated by the Manager or an Affiliate of Manager pursuant to Section
2.7 and (b) the Third Party designated as operator with respect to Assets not operated by the Manager or an Affiliate of the
Manager.

 

“Operating
Services” has the meaning specified in Exhibit A.

 

    	9

    	 

    

 

“Organization
and Offering Expenses” means all costs and expenses of organizing and selling the Offering (other than the Selling
Commissions and the Dealer Manager Fees) paid by AECP LP, AECP GP or the Manager in connection with the Offering, including, but
not limited to, fees of the underwriters' attorneys, expenses for printing, engraving, mailing, filing, salaries of employees while
engaged in sales activity, charges of transfer agents, registrars, trustees, escrow holders or escrow agent, depositaries, engineers
and their experts, expenses of qualification of the sale of the Common Units under Federal and State law, including taxes and fees,
accountants' and attorneys' fees and other front-end fees, charges incurred by or on behalf of AECP GP or the Manager in connection
with the formation of AECP LP, the Owner and the Manager, the preparation, negotiation, and execution of the Partnership Agreement,
this Agreement, any dealer manager or soliciting dealer agreement, escrow agent agreement subscription agreement and any other
agreement in connection with or relating to the Offering, issuance of Common Units in the Offering and reimbursement of AECP LP,
AECP GP or the Manager for costs in connection with preparing supplemental sales materials.

 

“OrgOff
Reimbursement Amount” has the meaning specified in Section 5.2(a).

 

“Out-of-Pocket
Expenses” has the meaning specified in Section 5.2(c).

 

“Owner”
has the meaning specified in the introductory paragraph of this Agreement and, unless the context otherwise requires, includes
the subsidiaries of the Owner.

 

“Owner
Agreement” means the First Amended and Restated Limited Liability Company Agreement of Owner, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Owner
Indemnified Parties” has the meaning specified in Section 11.2.

 

“Parties”
has the meaning specified in the introductory paragraph.

 

“Partnership
Agreement” means the First Amended and Restated Agreement of Limited Partnership of AECP LP, as same may be amended,
supplemented or restated during the term of this Agreement.

 

“Permitted
Investment” means (a) any evidence of indebtedness, maturing not more than one (1) year after such time, issued or
guaranteed by the United States Government, (b) commercial paper, maturing not more than nine (9) months from the date of
issue, which is issued by a corporation (other than an Affiliate of the Manager) organized under the laws of any state of the United
States or of the District of Columbia and rated A-l by Standard & Poor's Ratings Group, or any successor thereto, or P-l by
Moody's Investors Service, Inc., (c) any certificate of deposit or bankers acceptance, maturing not more than one (1) year
after such time, which is issued by a commercial banking institution that is a member of the U.S. Federal Reserve System and has
a combined capital and surplus and undivided profits of not less than $500,000,000, or (d) any repurchase agreement entered
into with any commercial banking institution of the stature referred to in clause (c) which (i) is secured by a fully
perfected security interest in any obligation of the type described in any of clauses (a) through (c), and (ii) has
a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such
commercial banking institution thereunder.

 

    	10

    	 

    

 

“Permits”
has the meaning specified in Exhibit A.

 

“Person”
(whether or not capitalized) means any natural person, corporation, company, limited or general partnership, joint stock company,
joint venture, association, limited liability company, trust, bank, trust company, land trust, business trust or other entity or
organization, whether or not a Governmental Authority.

 

“Property
Acquisition” means any acquisition or proposed acquisition of developed and undeveloped producing or non-producing
oil and gas properties (generally consisting of Leases and Wells) where such properties are located onshore in the United States,
but excluding any FWPP Opportunity.

 

“Proposal”
has the meaning specified in Section 9.1(c).

 

“Reasonably
Prudent Operator” means conducting the applicable activities as a reasonably prudent operator, in a good and workmanlike
manner, with due diligence and dispatch, in accordance with good oilfield practice, and in compliance with applicable law and regulation,
but with no liability for losses sustained or liabilities incurred, except as such may result from gross negligence or willful
misconduct.

 

“Records”
has the meaning specified in Section 2.4.

 

“Rejected
Proposal” has the meaning specified in Section 9.1(b).

 

“Selling
Commission(s)” means the fee(s) payable to the Dealer Manager and reallowable to Soliciting Dealers with respect
to Common Units sold by them in the Offering.

 

“Services”
has the meaning set forth in Section 2.1.

 

“Soliciting
Dealers” means broker-dealers that are members of the Financial Industry Regulatory Authority Inc., or that are exempt
from broker-dealer registration, and that, in either case, have executed soliciting dealer or other agreements with the Dealer
Manager to sell Common Units in the Offering.

 

“Term”
has the meaning specified in Section 10.1.

 

“Third
Party” means any Person other than a Party to this Agreement or any Affiliate of a Party to this Agreement.

 

“Utica
Shale Formation” means the Utica Shale Formation in Ohio, West Virginia and Pennsylvania.

 

“Wells”
means all oil, gas and other hydrocarbon wells now owned or hereafter participated in or acquired by the Owner.

 

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Section 1.2           References
and Titles. All references in this Agreement to Exhibits, Schedules, Sections, paragraphs, subsections and other subdivisions
refer to the corresponding Exhibits, Schedules, Sections, paragraphs, subsections and other subdivisions of or to this Agreement
unless expressly provided otherwise. The words “this Agreement,” “herein,” “hereby,” “hereunder”
and “hereof,” and words of similar import, refer to this Agreement as a whole and not to any particular Section, subsection
or other subdivision unless expressly so limited. The word “including” (in its various forms) means including without
limitation. All references to “$” or “dollars” shall be deemed references to United States Dollars. Titles
appearing at the beginning of any Sections, subsections or other subdivisions of this Agreement are for convenience only, do not
constitute any part of this Agreement, and shall be disregarded in construing the language hereof. The words “this Agreement,”
“here,” “hereby,” “hereunder’’ and “hereof,” and words of similar import,
refer to this Agreement as a whole and not to any particular subdivision unless expressly so limited. The words “this Section”
and “this subsection,” and words of similar import, refer only to Section or subsection hereof in which such words
occur. The word “or” is not exclusive, and the word “including” (in its various forms) means including
without limitation. Each accounting term not defined herein, and each accounting term partly defined herein to the extent not defined,
will have the meaning given to it under GAAP. Exhibits and Schedules referred to herein are attached to and by this reference incorporated
herein for all purposes. Pronouns in masculine, feminine or neuter genders shall be construed to state and include any other gender,
and words, terms and titles (including terms defined herein) in the singular form shall be construed to include the plural and
vice versa, unless the context otherwise requires. References to any Law or agreement (or contract) means such Law or agreement
(or contract) as it may be amended from time-to-time. If an ambiguity, question of intent or question of interpretation arises,
this Agreement must be construed as if drafted jointly, and there must not be any presumption, inference or conclusion drawn against
either Party by virtue of the fact that its representatives have authored this Agreement or any of its terms. Any reference to
an agreement or contract herein shall include any amendment, modification or replacement thereof that is in accordance with the
provisions of this Agreement.

 

ARTICLE
II

Management Services

 

Section 2.1           Engagement
of Manager. Commencing on the Effective Date, the Owner hereby appoints, retains and authorizes the Manager, and the Manager
hereby accepts and agrees, to perform the Management Services and Operating Services (collectively, the “Services”)
during the Term at all times in accordance with the terms and conditions set forth in this Agreement.

 

Section 2.2           Direction
of Result of Management Services. Except with respect to the means or method by which the Manager performs the Services (which
shall be subject to the good faith direction or control of the Manager), the provision of the Services hereunder shall at all
times be subject to the direction of the Owner, including, without limitation, the Owner’s right, subject to Section
3.5, to direct the Manager with respect to funds held in any Owner’s account(s) managed by the Manager. The Parties
acknowledge that the Owner’s need for and scope of the Services may change from time to time depending on the nature, number
and size of the interests comprising the Assets held by the Owner at any given time, and Owner reserves the right to change the
scope of the Services consistent with Exhibit A from time to time by mutual agreement with the Manager.

 

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Section 2.3           Management
Standards. Subject to the terms hereof, the Manager will act in compliance with the provisions of this Agreement and, where
this Agreement does not specifically establish a particular obligation or standard, (a) with respect to Assets subject to an Operating
Agreement of which Manager is the Operator (and if the Owner or any of its subsidiaries is designated as the Operator of any Assets
Owner shall take such actions as are necessary or appropriate to cause the Manager to be designated as the Operator of same) in
compliance with the terms of such Operating Agreement as they apply to the Assets; (b) with respect to Assets subject to an
operating agreement of which the Manager is not the Operator, as a Reasonably Prudent Operator consistent with generally acceptable
standards for non-operated properties in the oil and gas business based on information regarding such operations furnished or otherwise
obtained by the Manager and (c) with respect to Assets or business of the Owner not subject to an Operating Agreement, in a manner
consistent with generally acceptable standards in the oil and gas business. The Manager shall have no obligation to advance funds
for the account of the Owner or to pay any sums of its own in connection with the performance of the actions which it is authorized
or required to take on behalf of the Owner hereunder.

 

Section 2.4           Records;
Financial Reports; Instruments of Service. At all times during the Term, the Manager shall maintain complete books of account,
receipts, disbursements, Permits and all other records relating to the Services performed hereunder (the “Records”),
and all accounting Records shall be maintained in accordance with GAAP. The Manager shall deliver (i) monthly financial and operating
reports to Owner in respect of the most recently ended Calendar Month in a form requested and as may be required by Owner, but
in any event no later than 30 days after the end of each Calendar Month, and (ii) quarterly cash flow forecasts for Owner as may
be required by Owner, but in any event no later than 15 days prior to the start of the applicable Calendar Quarter. Further, the
Manager shall prepare and submit to Owner a monthly management report in respect of the most recently ended Calendar Month with
such information as Owner may request, as well as any other information (without regard to whether relating to such Calendar Month)
that Owner may request. Owner and/or any representatives designated by Owner may at any time during normal business hours, upon
not less than two (2) Business Days’ advance notice, examine and/or make and retain copies of said Records. Upon the request
from Owner to the Manager given at any time or from time to time, the Manager shall furnish to Owner a report setting forth the
borrowing, hedging transactions and intangible drilling costs made or incurred during the preceding six-month period and such other
information as Owner may reasonably request and as is available to the Manager in order to permit Owner to comply with the reporting
requirements of the NASAA Guidelines as then in effect.

 

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Section 2.5           Certain
Limitations on Management Services. It is the intent of Owner and the Manager to maintain the separate corporate existence
of both entities, to hold themselves out to others as separate corporate entities and to conduct their respective businesses in
a manner which respects and preserves their separate identities. Owner and the Manager also acknowledge and agree that AECP LP,
as the sole member of Owner, is relying on the establishment and maintenance of the separate corporate entity of Owner. Accordingly,
the Manager will provide the Management Services, and the Owner will operate its business, consistent with this intent. Without
limiting the foregoing, the Manager, to the extent applicable when providing Management Services on behalf of Owner, shall (i)
maintain proper books and records that show the assets, liabilities, and transactions of the Owner separate from those of any other
person and prepare financial statements for Owner in the same manner, (ii) not commingle the funds received by the Manager on behalf
of the Owner with any other person’s funds, including those of the Manager, (iii) pay liabilities and expenses invoiced directly
to the Owner or its Assets only out of the Owner’s own funds maintained by or on behalf of Owner, and (iv) maintain separate
bank accounts belonging only to, or maintained by the Owner. Nothing in this Agreement shall prohibit the Manager and Owner from
acknowledging to third parties their status as parties to this Agreement.

 

Section 2.6           Well
Operations. If the interest of the Owner in a Lease (together with any interest owned by the Manager and its Affiliates) entitle
the Owner to appoint the Operator of the property, the Manager (or its designated Affiliate) shall use its reasonable commercial
efforts to assist the Owner to take the actions necessary to designate the Manager as the Operator of such property, which designation
shall be pursuant to either (i) the operating agreement currently in effect with respect to a property acquired by the Owner or
(ii) if any of such properties are not currently operated pursuant to an operating agreement, an operating agreement (including
COPAS) in the form attached hereto as Exhibit D, with modifications as are reasonably required for each particular property.
To the extent any of the Services described herein are duplicative of services to be provided by the Manager or any of its Affiliates
under any joint operating agreement or other agreement, then the Manager shall so advise Owner of such duplicative services, and,
unless Owner and the Manager otherwise mutually agree, no additional obligations will be incurred or implied by any of the terms
of this Agreement, and such joint operating agreements or other agreement (and not this Agreement) will govern the terms of such
services.

 

ARTICLE
III

Financial Administration

 

Section 3.1           Budget.

 

(a)          Annual
Budget Process. The Manager shall prepare and submit to Owner at least 45 days before the beginning of each Calendar Year after
the first Property Acquisition by Owner, a budget (“Draft Budget”) detailing the Development Activities
planned to be commenced during the relevant Calendar Year, which shall specify the amounts expected to be spent by the Owner during
such Calendar Year to conduct such Development Activities, and to otherwise own its Assets and conduct the Business during such
Calendar Year; provided that in connection with the first acquisition made by the Owner, the Manager shall deliver a Draft Budget
to Owner in connection with such acquisition as contemplated by Section 9.2(a). The Owner shall approve or disapprove the
Draft Budget no later than 15 days prior to the start of the Calendar Year; provided that the first Draft Budget shall be approved
as provided in Section 9.2(a). If the Owner approves the Draft Budget, the Draft Budget shall be deemed the Budget
for purposes of this Agreement, until revised in accordance with Section 3.1(b) below. If the Owner fails to approve a Draft
Budget by the commencement of a Calendar Year, then until a Draft Budget for such Calendar Year is approved, the Manager is authorized
to pay from the Owner’s account the costs and expenses incurred in the ordinary course of business in amounts materially
consistent with, and for Development Activities and other activities set forth in, the prior Calendar Year’s Budget as adjusted
for supplements to such Budget attributable to any subsequent Property Acquisition(s), including in respect of costs and expenses
to the extent incurred pursuant to the contractual obligations of the Owner, including any Material Commitments, and other costs
and expenses approved as provided in this Agreement.

 

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(b)          Approval
of Additional Activities. From time to time prior to the termination of this Agreement, the Manager may present to Owner supplemental
Development Activities or other activities that the Manager proposes to be undertaken by the Owner and that are not included in
the applicable approved Budget for such Calendar Year, and revisions to a previously approved Budget that the Manager recommends
be adopted by Owner. If Owner approves such revised Budget, the revised Budget shall be deemed the Budget as used in this Agreement.
In addition, the Budget shall be deemed to be amended as provided in Section 9.2(b).

 

(c)          Cooperation.
Prior to and in respect of any proposals made by the Manager to Owner pursuant to Section 3.1(b), the Manager and Owner
agree to use good faith efforts (1) to exchange information regarding such proposals and proposed activities to be undertaken in
connection with any such proposal or potential alternatives to any such proposal and (2) to ensure an efficient and expedient review
and decision-making process in respect of such proposals. In addition, upon the reasonable request of Owner to the Manager, which
may be submitted no more frequently than once each Calendar Quarter, the Owner will have the right to review with the Manager the
current year’s Budget against expenditures incurred to date during the Calendar Year covered by such Budget.

 

(d)          Permitted
Overruns. Whenever any provision of this Agreement permits the Manager to make an expenditure or conduct a Development Activity
or other operation as provided in the Budget, the Manager will be deemed to have made such expenditure or conducted such Development
Activity or other operation as contemplated by the Budget if (1) the aggregate expenditures during any Budget period do not
exceed the amount set forth in the approved Budget for such Budget period for such Development Activity or other operation by more
than 10.0% (provided that the Manager shall advise Owner of such excess(es) within ten (10) Business Days after it is incurred)
or (2) the expenditure(s) are determined by the Manager to be required in connection with an Emergency.

 

Section 3.2           Cash
Management. The Manager shall implement a cash management system for the cash and cash equivalents of the Owner, the Manager
shall not commingle Owner’s funds with those of the Manager or its Affiliates, and funds of the Owner held by the Manager
shall be employed or applied for the exclusive benefit of Owner. The Manager shall invest any cash held on behalf of the Owner
only in Permitted Investments and shall hold all such Permitted Investments and any cash in trust on behalf of the Owner. The Manager
shall as promptly as commercially practicable deposit all cash and Permitted Investments held on behalf of Owner in excess of 50%
of the then remaining unexpended portion of the approved Budget as directed by Owner in one or more accounts of Owner.

 

Section 3.3           Revenues
and Joint Interest Billings. The Manager shall receive all revenues and joint interest billings for the account of the Owner
and promptly credit or charge, as the case may be, the Owner with the Owner’s net revenue and joint interest billings with
respect to its properties, on a property-by-property basis.

 

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Section 3.4           Manager
Payments. From time to time, Manager shall pay, unless otherwise instructed by Owner, from the Owner’s funds administered
by the Manager, as and to the extent required by any applicable contract, or Law and, to the Manager’s knowledge, to the
extent not previously paid by any purchaser, operator or Third Party, in each case to the extent such liability is attributable
to the Owner’s interest in a property or otherwise an obligation of Owner, all taxes, royalties, overriding royalties, delay
rentals, operating expenses and other charges under operating agreements, debt service on the Owner’s debts, the OrgOff Reimbursement
Amount, the Monthly Management Fee, Acquisition Fee, Disposition Fee, Financing Fee and Incentive Performance Fee (which shall
be paid to the Manager in accordance with Article V) and other debts and obligations of the Owner (including the costs to
be reimbursed to the Manager pursuant to Section 5.2).

 

Section 3.5           Payment
to Owner. As contemplated pursuant to Section 2.2, the Owner may, from time to time, direct the Manager to transfer
to an account specified by the Owner funds in accounts maintained for Owner by the Manager that the Owner and the Manager mutually
agree are not necessary for the conduct of the Owner’s business as contemplated by the Budget then in effect (for purposes
of determining the funds necessary to be retained, taking into account, among other items, funds required in accordance with the
Budget then in effect for working capital purposes, reserves for capital expenditures, reserves for payments due to the Manager
pursuant to Article V and reserves for an approved Property Acquisition; provided, however, that if in accordance
with the direction by Owner of the Manager in accordance with Section 2.2 or Section 3.4 or otherwise an activity
contemplated in the Budget then in effect and for which funds are retained is not consummated, then any remaining funds reserved
therefor will then be transferred to the Owner pursuant to this Section 3.5).

 

ARTICLE
IV

Contract Administration; Power of Attorney

 

Section 4.1           Contract
Administration. The Services shall include negotiating, administering and terminating contracts,
by and on behalf of the Owner, in the ordinary course of Business, but in all cases in compliance with the Budget. All such contracts
shall be executed by the Manager in the name of the Owner, pursuant to the power of attorney granted herein.

 

Section 4.2           Purchases
for the Owner. The day-to-day operations and management of the Owner’s Business shall
include the purchase (or lease) of such equipment, supplies and other goods necessary for the efficient operation of the Owner’s
Business and as shall be consistent with the Budget. Purchases shall be made only at reasonable costs.

 

Section 4.3           Affiliate
Transactions. The Manager shall not make or cause the Owner to make any contract (other than
an Operating Agreement as provided herein) with or purchase or sell goods or services from or to the Manager or any Affiliate of
the Manager, unless such contract or purchase or sale is specifically identified as an Affiliate transaction in the Budget, or
with the prior written approval of Owner. Nothing in this Section 4.3 shall be construed to limit or restrict the right
of the Manager to engage, or require Owner’s prior approval of the engagement by Manager of, any Affiliate of Manager to
perform any of the Services on behalf of the Manager so long as the Affiliate of Manager is not entitled to any payment by Owner
for providing such Services.

 

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Section 4.4           Power
of Attorney. (a) By execution of this Agreement, the Owner does hereby make, constitute and
appoint the Manager, and its successors, with full power of substitution, as its true and lawful attorney and agent with full power
and authority in its name, place and stead to execute, swear to, acknowledge, deliver, file, record in the appropriate public offices
and publish any and all contracts, agreements, instruments, conveyances, mortgages, deeds, notes and other documents of any kind
or nature related to, arising out of or in connection with the Manager's performance of this Agreement.

 

(b)          During
the Term of this Agreement, the power of attorney granted in this Section 4.4 shall survive the Bankruptcy, dissolution
or other termination of the Owner, shall extend and be binding upon the Owner's successors and assigns and shall continue in full
force and effect regardless of the occurrence of any of the foregoing. The Owner hereby agrees to be bound by any such contracts,
agreements, instruments, conveyances, mortgages, deeds, notes and other documents executed or otherwise entered into by the attorney
and agent acting in good faith pursuant hereto and pursuant to such power of attorney, and hereby waives any and all defenses that
may be available to contest, negate, or disaffirm any action of the attorney and agent taken under such power of attorney, except
in cases of bad faith, gross negligence, willful misconduct or material breach of this Agreement.

 

ARTICLE
V

Compensation and Expenses

 

Section
5.1           Management Fee. In consideration for the
performance by the Manager of Management Services, Owner shall pay to the Manager monthly, in advance, an amount rounded to
the nearest $10.00 (such amount, the “Monthly Management Fee”), which amount is equal to the
product of (a) until and including the Calendar Month of termination of the Offering, 0.291667%, and thereafter, 0.333333%,
times (b) the sum of (i) the Gross Proceeds determined as of the last day of the preceding Calendar Month and (ii) the
average outstanding indebtedness of AECP LP (determined on a consolidated basis) during the preceding Calendar Month. A
Monthly Management Fee shall not be payable for any period prior to the Initial Closing. On or before the 20th day of the
Calendar Month immediately preceding the Calendar Month in which the Management Services are to be provided, the Manager
shall furnish to Owner in writing its calculation of the Monthly Management Fee that is payable in respect of the next
succeeding Calendar Month. The Monthly Management Fee payable to the Manager by Owner will be in addition to all fixed rate
charges under any joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a
working interest. Each Calendar Month after the Initial Closing and prior to the end of the Term, the Manager will deliver,
together with its calculation of the Monthly Management Fee to be paid by Owner for the succeeding Calendar Month as provided
in the second preceding sentence, a summary of the costs and expenses to be reimbursed to the Manager in accordance with the
immediately preceding sentence (each such written calculation and summary, an “Invoice”). At any
time that is not less than ten (10) days following the date that Owner receives an Invoice, the Manager may apply any funds
that it holds on behalf of Owner to payment of the amount specified in the Invoice less any amount(s) to which Owner has
reasonably objected in writing during such 10-day period. If the Owner timely objects to any amount in an Invoice, Owner and
Manager shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly after the resolution of
such matter Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined to be owing to
the Manager. If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the amounts due
to the Manager pursuant to this Section 5.1, then Owner will promptly make payment to the Manager of the amount
due and unpaid in immediately available funds by wire transfer to an account specified by the Manager to Owner. Pursuant to
Section 7.2(i) of the Partnership Agreement, AECP LP will pay to AECP GP a management fee commencing with a payment for the
first Calendar Month after termination of the Offering, which fee shall be payable in cash monthly after termination of the
Offering concurrently with payment by Owner to the Manager of the Monthly Management Fee pursuant to this Section
5.1 and shall be in an amount equal to the product of (a) 0.083333% times (b) the Gross Proceeds determined as of the
last day of the preceding month.

 

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Section 5.2           Reimbursement
of Organization and Offering Expenses; Reimbursement of Out-of-Pocket Expenses. (a) The Manager and the General Partner expect
that Organization and Offering Expenses, including Organization and Offering Expenses consisting of fees and expenses paid to third
parties, that they incur on behalf of the Partnership and the Owner will be incurred in a ratio approximately one-third (1/3rd)
by the Manager and two-thirds (2/3rds) by the General Partner, and if such ratio is not maintained then the Manager and the General
Partner will take such actions prior to the Initial Closing or any subsequent closing of the Offering, as the case may be, as may
be necessary to return to such ratio with respect to the Organization and Offering Expenses as of each of the Initial Closing and
each subsequent closing. At or promptly after (in any event not later than five (5) Business Days after) the Initial Closing and
each subsequent closing of the issuance of Common Units in the Offering, (i) the Manager will determine the total Organization
and Offering Expenses it has incurred prior to such closing that have not been previously reimbursed by AECP LP or the Owner and
will prepare and submit to AECP LP an invoice therefor accompanied by reasonable supporting documentation; and (ii) AECP LP or
the Owner will promptly reimburse the Manager for the amount specified in such invoice subject to a maximum reimbursement amount
of one-half percent (0.5%) of the Gross Proceeds for all Common Units issued in the Initial Closing and each such subsequent closing
of the Offering. The Organization and Offering Expenses to be reimbursed by AECP LP or the Owner to the Manager shall not exceed
one-half percent (0.5%) of the aggregate Gross Proceeds raised in the Offering (such maximum amount, the “Expense Cap”).
To the extent that the Manager incurs Organization and Offering Expenses in excess of the Expense, the Manager shall not be reimbursed
for such expenses. Amounts required to be paid by AECP LP and the Owner pursuant to this Section 5.2(a) at the Initial Closing
and each subsequent closing of the Offering are referred to as the “OrgOff Reimbursement Amount”.

 

(b)          Except
as set forth in this Section 5.2, in no event will the Manager be entitled to reimbursement from AECP LP or the Owner, nor
will AECP LP or the Owner be obligated to reimburse the Manager, for any Organization and Offering Expenses incurred by the Manager
and its Affiliates. The Manager may apply any funds that it holds on behalf of AECP LP or the Owner to payment of the OrgOff Reimbursement
Amount then due to the Manager pursuant to this Section 5.2(a), but if the funds that the Manager holds on behalf of AECP
LP or the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.2,
then AECP LP or the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds
by wire transfer to an account specified by the Manager to AECP LP or the Owner. The OrgOff Reimbursement Amount that is payable
to the Manager by AECP LP or the Owner pursuant to Section 5.2(a) will be in addition to all fixed rate charges under any
joint operating agreements in which the Manager or its Affiliates act as operator and the Owner owns a working interest. Pursuant
to the Partnership Agreement, AECP LP will reimburse AECP GP at or promptly after the Initial Closing and each subsequent closing
of the issuance of Common Units in the Offering for the Organization and Offering Expenses it incurs up to a maximum of one percent
(1.0%) of the Gross Proceeds raised in the Offering, which reimbursement shall be made concurrently with each payment to the Manager
of the OrgOff Reimbursement Amount.

 

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(c)          The
Manager shall pay all reasonable out-of-pocket expenses (excluding for purposes of this Section 5.2 Organization and Offering
Expenses, Acquisition Expenses and Disposition Expenses) of the Manager and its Affiliates, agents and consultants (“Out-of-Pocket
Expenses”), pursuant to the policies and procedures established by the Manager and approved by the Owner and in accordance
with the Budget, and consistent with the allocations set forth in Exhibit C hereto, for the payment or reimbursement of
such costs with respect to activities conducted for the Owner pursuant to this Agreement. The Owner shall reimburse the Manager
for all such Out-of-Pocket Expenses paid by the Manager on behalf of the Owner or in connection with the Business of the Owner
and for which the Manager has not been previously reimbursed, and on or before the 20th day after each Calendar Month in which
the Manager incurs Out-of Pocket Expenses the Manager will invoice the Owner for such Out-of Pocket Expenses incurred during the
preceding month accompanied by reasonable supporting detail. At any time that is not less than ten (10) days following the date
that Owner receives an invoice for Out-of-Pocket Expenses pursuant to this Section 5.2(b), the Manager may apply any funds
that it holds on behalf of Owner to payment of the amount specified in such invoice less any amount(s) to which Owner has reasonably
objected in writing during such 10-day period. If the Owner timely objects to any amount in any such invoice, Owner and Manager
shall use their reasonable commercial efforts to resolve such dispute amicably, and promptly after the resolution of such matter
the Manager may apply any funds that it holds on behalf of Owner to payment of the amount determined to be owing to the Manager.
If the funds that the Manager holds on behalf of Owner are insufficient to pay in full when due the amounts due to the Manager
pursuant to this Section 5.2(b), then Owner will promptly make payment to the Manager of the amount due and unpaid in immediately
available funds by wire transfer to an account specified by the Manager to Owner. Any amounts payable to the Manager by Owner pursuant
to this Section 5.2(b) will be in addition to all fixed rate charges under any joint operating agreements in which the Manager
or its Affiliates act as operator and the Owner owns a working interest.

 

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Section 5.3           Acquisition
Fee and Acquisition Expenses. The Owner shall pay an Acquisition Fee to the Manager as compensation for its Management Services
rendered in connection with the investigation, selection and acquisition (by purchase, contribution, investment or exchange) of
any Property Acquisition. The Manager shall be entitled to an Acquisition Fee for any Property Acquisition acquired after the termination
of this Agreement for which a contract for any such Property Acquisition had been entered into at or prior to such termination.
The total acquisition fee (the “Acquisition Fee”) payable to the Manager for each Property Acquisition
shall equal two percent (2.0%) of the Contract Purchase Price of each Property Acquisition, payable in cash. The purchase price
allocable for an Investment held through a Joint Venture shall equal the product of (i) the Contract Purchase Price of the Property
Acquisition and (ii) the direct or indirect ownership percentage in the Joint Venture held directly or indirectly by AECP LP or
the Owner. For purposes of this Section 5.3, “ownership percentage” shall be the percentage of capital stock,
membership interest, partnership interest or other equity interests held by the AECP LP or the Owner, without regard to classification
of such equity interests. Owner shall pay to the Manager the Acquisition Fee promptly upon the closing of each Property Acquisition,
unless Owner and the Manger mutually agree the defer payment of such Acquisition Fee in respect of any Property Acquisition, in
which event it shall be paid in accordance with such mutual agreement. In addition to the Acquisition Fee payable to the Manager
pursuant to this Section 5.3, AECP LP or the Owner shall pay directly or reimburse the Manager for all Acquisition Expenses
incurred in connection with the selection, evaluation, acquisition, origination, making or development of any Property Acquisition;
provided, however, in no event shall the sum of the Acquisition Fee and the Acquisition Expenses required to be paid
or reimbursed by AECP LP or the Owner pursuant to this Section 5.3 in respect of any Property Acquisition exceed three percent
(3.0%) of the Contract Purchase Price of such Property Acquisition. AECP LP or the Owner shall pay the Acquisition Fee and reimburse
the Manager for Acquisition Expenses payable pursuant to this Section 5.3 within ten (10) days following each date AECP
LP or the Owner receives an invoice for the amount of the Acquisition Fee payable and Acquisition Expenses reimbursable to the
Manager pursuant to this Section 5.3, provided that such invoice shall be furnished no earlier than two (2) Business Days
before the closing of any Property Acquisition or, in the case of Acquisition Expenses in respect of any proposed acquisition that
has been unsuccessful, the cessation of the efforts by AECP LP or the Owner to acquire such Property Acquisition; subject, however,
to any mutual agreement by Owner and the Manager to defer payment of the Acquisition Fee in respect of any Property Acquisition.
The Manager may apply any funds that it holds on behalf of the Owner to payment of the amount specified in such invoice less any
amount(s) to which the Owner has reasonably objected in writing during the 10-day period commencing on receipt of such invoice.
If the Owner timely objects to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager holds
on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.3,
then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant to this Section
5.3 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates
act as operator and the Owner owns a working interest.

 

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Section 5.4           Disposition
Fee and Disposition Expenses. As compensation to the Manager for its Management Services rendered in connection with the sale
or other disposition by AECP LP or the Owner of all or any portion of the Assets (other than the sale or other disposition in the
ordinary course of business of oil, gas or other hydrocarbons produced from the Assets), the Owner shall pay to the Manager the
Disposition Fee. The Manager shall be entitled to a Disposition Fee for any Asset(s) sold or otherwise disposed of by AECP LP or
the Owner after such termination for which the applicable contract(s) to sell or otherwise dispose of such Asset had been entered
into at or prior to such termination date. The total disposition fee (“Disposition Fee”) payable in cash
to the Manager shall equal one-half percent (0.5%) of the Contract Sales Price of such Asset(s). In addition to the Disposition
Fee payable to the Manager pursuant to this Section 5.4, AECP LP or the Owner shall pay directly or reimburse the Manager
for all Disposition Expenses incurred in connection with the any sale or other disposition or proposed sale or other disposition.
AECP LP or the Owner shall pay the Disposition Fee and reimburse the Manager for the Disposition Expenses payable pursuant to this
Section 5.4 in connection with the sale or disposition of Assets within ten (10) days following each date AECP LP or the
Owner receives an invoice for the amount of the Disposition Fee so payable to the Manager pursuant to this Section 5.4,
which invoice shall be furnished in connection with the closing of any sale or other disposition or, in the case of Disposition
Expenses in respect of any sale or other disposition that has been unsuccessful, the cessation of the efforts to sell or otherwise
dispose of the applicable Asset(s); provided, however, that if Owner and the Manager mutually agree to defer payment
of the Disposition Fee in respect of the sale of any Assets such Disposition Fee shall be paid in accordance with such mutual agreement.
The Manager may apply any funds that it holds on behalf of the Owner to payment of the amount specified in such invoice less any
amount(s) to which the Owner has reasonably objected in writing during the 10-day period commencing on receipt of such invoice.
If the Owner timely objects to any amount in any such invoice, the Owner and the Manager shall use their reasonable commercial
efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any funds that
it holds on behalf of the Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager holds
on behalf of the Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.4,
then the Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to the Owner. Any amounts payable to the Manager by the Owner pursuant to this Section
5.4 will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates
act as operator and the Owner owns a working interest. Notwithstanding anything to the contrary in this Section 5.4, in
no event shall any Disposition Fee be payable by AECP LP or the Owner pursuant to this Section 5.4 in connection with the
sale or exchange in the ordinary course of business by AECP LP or the Manager of oil, natural gas or other hydrocarbons produced
from the Assets. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a disposition fee in connection with the sale
or other disposition by AECP LP or the Owner of all or any portion of the Assets (other than the sale or other disposition in the
ordinary course of business of oil, gas or other hydrocarbons produced from the Assets), which fee shall be payable in cash concurrently
with payment by the Owner to the Manager of the Disposition Fee pursuant to this Section 5.4 in respect of such disposition
of Asset(s) and shall be in an amount equal to one-half percent (0.5%) of the Contract Sales Price of such Asset(s).

 

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Section 5.5           Financing
Coordination Fee. As compensation to the Manager for its Management Services rendered in connection with the financing by AECP
LP or the Owner of any Property Acquisition or Asset, the assumption by AECP LP or the Owner of any Loan(s) with respect to any
Property Acquisition or Asset or refinancing by AECP LP or the Owner of any Loan, the Owner shall pay the Manager a fee, payable
in cash (the “Financing Coordination Fee”), equal to one-half percent (0.5%) of the principal account
incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan. AECP LP or the Owner shall pay the Financing
Coordination Fee payable pursuant to this Section 5.5 at or promptly after (and in any event within two (2) Business Days
after) the closing of the Loan that is the subject of the Financing Coordination Fee then due or each draw down by the Partnership
of any principal amount of any Loan, as the case may be; provided, however, that if Owner and the Manager mutually
agree to defer payment of any Financing Coordination Fee, then such Financing Coordination Fee shall be paid in accordance with
such mutual agreement. The Manager may apply any funds that it holds on behalf of Owner to payment of the amount of any Financing
Coordination Fee then due and payable to the Manager pursuant to this Section 5.5 less any amount(s) to which Owner
has reasonably objected in writing prior to the closing of the Loan that is the subject of the applicable Financing Coordination
Fee. If the Owner timely objects to any amount of any Financing Coordination Fee, Owner and Manager shall use their reasonable
commercial efforts to resolve such dispute amicably, and promptly after the resolution of such matter the Manager may apply any
funds that it holds on behalf of Owner to payment of the amount determined to be owing to the Manager. If the funds that the Manager
holds on behalf of Owner are insufficient to pay in full when due the amounts due to the Manager pursuant to this Section 5.5,
then Owner will promptly make payment to the Manager of the amount due and unpaid in immediately available funds by wire transfer
to an account specified by the Manager to Owner. Any amounts payable to the Manager by Owner pursuant to this Section 5.5
will be in addition to all fixed rate charges under any joint operating agreements in which the Manager or its Affiliates act as
operator and the Owner owns a working interest. Pursuant to the Partnership Agreement, AECP LP will pay to AECP GP a financing
coordination fee in connection with the financing by AECP LP or the Owner of any Property Acquisition or Asset, the assumption
by AECP LP or the Owner of any Loan(s) with respect to any Property Acquisition or Asset or refinancing by AECP LP or the Owner
of any Loan, which fee shall be payable in cash concurrently with payment by Owner to the Manager of the Financing Coordination
Fee pursuant to this Section 5.5 in respect of such financing transaction and shall be in an amount equal to one-quarter
percent (0.25%) of the principal account incurred by AECP LP or the Owner, as the case may be, or outstanding under any such Loan.

 

ARTICLE
VI

Representations, Warranties and Covenants

 

The Manager represents,
warrants and covenants to the Owner and AECP LP as follows:

 

(a)          Organization,
Good Standing, Etc. The Manager is a limited liability company duly formed, validly existing and in good standing under the
laws of the State of Oklahoma. Before commencing operations in any State where Leases are located the Manager will be duly qualified
and/or licensed to the extent and as may be required, and in good standing in such State.

 

(b)          Authority;
Enforceable Agreement. The Manager has taken all necessary action to authorize the execution, delivery and performance of this
Agreement and has adequate power, authority and legal right to enter into, execute, deliver and perform this Agreement. This Agreement
is legal, valid and binding with respect to the Manager and is enforceable in accordance with its terms, except as the enforceability
thereof may be limited by bankruptcy, insolvency or similar laws affecting creditors’ rights generally.

 

(c)          Legal
Requirements. The Manager has, or before commencing activities in any State or other jurisdiction will have, all requisite
power, approvals, authorizations, consents, licenses, orders, franchises, rights, registrations and permits of all Governmental
Authorities of such State or other jurisdiction required for the Manager to provide the Management Services in such jurisdiction;
each of the foregoing is or will be in full force and effect and has been duly and validly issued; and at the time Management Services
are performed the Manager will be in compliance in all material respects with all terms and conditions of each of the foregoing.

 

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(d)          No
Consent. No permit, consent, approval, authorization or order of, and no notice to or filing with, any Governmental Authority
or third party is required in connection with the execution, delivery or performance by the Manager of this Agreement or to consummate
any transactions contemplated hereby and thereby.

 

ARTICLE
VII

Additional Agreements of Manager; Restrictions on Manager

 

Section 7.1           Compliance
with Laws. In the performance of Services pursuant to this Agreement, the Manager shall comply
in all material respects with applicable Law relative to the use, operation, development and maintenance of the Business and the
Assets. The Manager shall use its reasonable commercial efforts to remedy any violation of any such applicable Law that comes to
its attention. The Manager shall promptly notify the Owner of any material violation of applicable Law in the performance of the
Services pursuant to this Agreement, and the Manager shall transmit promptly to the Owner a copy of any citation or other communication
received by the Manager setting forth any such violation.

 

Section 7.2           Compliance
with Obligations. The Manager, to the extent such matters are reasonably within its control,
shall use diligent and reasonable efforts to cause compliance in all material respects with all terms and conditions contained
in any contract, agreement, judicial, administrative or governmental order, law or ruling, lease, mortgage, deed of trust or other
contractual or security instrument affecting the Business or any of the Assets; provided, however, that, except as otherwise
set forth herein, the Manager shall not be required to make any payment or incur any liability on account thereof. The Manager
shall promptly notify the Owner in writing of any material violation of any such instrument or agreement in any material respect.

 

Section 7.3           Prohibited
Acts. Notwithstanding anything to the contrary, express or implied, in this Agreement, without
the consent of Owner the Manager shall not:

 

(a)          Affect
Title. Other than by way of a pledge, mortgage, deed of trust or trust indenture in connection with the terms of an Approved
Credit Facility or a farmout, joint operating agreement, participation agreement or other similar arrangement, sell, assign, surrender
or relinquish, farm out, encumber, hypothecate, mortgage, burden, or otherwise alter or impair the Owner’s title in, to,
or under, or that may be derived from, any of the Assets, or take any act that has the natural and foreseeable consequence of causing
any of the foregoing. The prohibition in the immediately preceding sentence does not apply, however, to any loss, alteration, or
impairment of title resulting (i) from the abandonment of any well, cessation of operations, non-commencement of the drilling of
any well or any other operations, or non-payment of delay rentals, advance royalties, shut-in well payments, or any other payments
when done with the Owner’s written consent or in accordance with the other terms of this Agreement; (ii) by virtue of
the non-consent, non-participation, or non-performance of any Third Party under any Operating Agreement; (iii) from the pooling,
unitization, or communitization of all or any part of the Owner’s interest in a property; (iv) from the sale or disposition
of worn out or obsolete equipment or spare parts; (v) from the sale of natural gas, crude oil, natural gas liquids, condensate,
other products and other hydrocarbons produced from the Assets; or (vi) from causes or circumstances beyond Manager's reasonable
control.

 

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(b)          Borrow
Funds. Except in accordance with Section 7.4, borrow any funds on behalf of the Owner (other than trade accounts payable
in the ordinary course of business).

 

(c)          Litigation
Matters. (i) Except for the filing or prosecution of any lawsuits for the collection of any monies owed to the Owner in the
ordinary course of business, file or prosecute any lawsuit, or (ii) confess any judgment or compromise or settle any pending,
threatened, or asserted claim or litigation, in each case with respect to or on behalf of the Owner or any of the Assets.

 

(d)          Resign
as Operator. Resign as Operator of any operated Asset except in accordance with this Agreement.

 

(e)          Tax
Status. Take any action which would cause the Owner not to be classified and treated as a partnership (and not as an association)
for federal income tax purposes.

 

(f)          Approved
Credit Facility. Amend or waive any provision of the Approved Credit Facility or take any actions which would result in a default
by the Owner under an Approved Credit Facility (but the foregoing shall not be construed to require the expenditure of any funds
by the Manager).

 

(g)          Expenditures.
Except in accordance with Article III, Section 4.3, and Article V, Section 7.1, Section 7.2
or Section 7.4, make or approve any expenditure for the Owner’s account, or obligate the Owner to make any expenditure,
other than for operating expenses (including any Operating Agreement then in effect) made pursuant to operating agreements covering
the Owner’s Assets or as provided in the Budget.

 

(h)          Activities;
Budget. Conduct for the Owner’s account, or consent to or obligate the Owner, to engage in any activity, other than an
activity provided for in the approved Budget or determined by the Manager to be required in connection with an Emergency.

 

(i)          Acquisitions
and Joint Ventures. Cause or obligate the Owner to enter into any business combination transaction, including any merger, consolidation,
equity exchange, acquisition, sale joint venture, partnership or similar arrangement, or acquire any assets (including any Property
Acquisition(s)), properties or rights, including leasehold and working interests.

 

(j)          Hedging.
Cause the Owner to adopt, revise or waive compliance with, the Hedging Policy, or cause the Owner to enter into or become obligated
under any Hedges that are not in accordance with the Hedging Policy.

 

(k)          Material
Commitment. Enter into any contract or agreement on behalf the Owner, or otherwise obligate the Owner under any contract or
agreement, that would reasonably be expected to constitute a Material Commitment.

 

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(l)          Affiliate
Transactions. Except in compliance with Section 4.3, cause the Owner to enter into any contract or other arrangement
or transaction with the Manager or an Affiliate of the Manager.

 

(m)          Amendment
to Agreements; Waiver of Rights. Cause the Owner to enter into or replace or amend, modify or restate or supplement in a manner
adverse to the Owner in any material respect, or cause the Owner to waive or fail to enforce on behalf of the Owner any material
rights of the Owner under, any participation, joint venture, operating, area of mutual interest or other similar agreement to which
the Owner is a party (provided that the restriction set forth in this clause (m) shall not apply to any extension or termination
of any agreement in accordance with its terms).

 

(n)          Certain
Non-Consent Activities. Cause the Owner to make any election or exercise any vote, or cause the Owner not to exercise any vote,
that has the effect of causing the Owner to not participate in any Development Activities or other activities or operations under
an Operating Agreement in which the Manager or an Affiliate of the Manager owns a working interest, unless the Manager or such
Affiliate also declines to participate in such activity or operations, unless Owner’s election or exercise of, or failure
to elect or exercise, any such vote is a result of Owner’s voluntary election or Owner’s inability or refusal to fund
the cost of the applicable Development Activities or other activities or operation, as the case may be, in which event neither
Manager nor any Affiliate shall be required to decline to participate in such activity in respect of its working interest therein.

 

(o)          Directed
Activities. Take on behalf of the Owner or cause the Owner to take any action or commit to any action that is contrary to the
good faith reasonable instructions of the Owner, provided that the foregoing shall not be construed to require the Manager to take
any action in violation of applicable Law or to incur any cost or liability that will not be reimbursed or assumed by the Owner.

 

Section 7.4           Emergencies.
Notwithstanding anything to the contrary in this Agreement, if Manager reasonably believes there is any Emergency, Manager
may, in the sole exercise of its discretion and at Owner’s expense, act for and on behalf of Owner in any manner reasonably
necessary or useful under the circumstances without the necessity of giving prior notice to the Owner or receiving any approval
or consent from the Owner. If Manager takes any such action pursuant to this Section 7.4, Manager shall promptly notify
the Owner of such Emergency and of the actions and/or expenditures approved by Manager as soon thereafter as is reasonably practicable.

 

Section 7.5           Manager’s
Insurance. The Manager shall at all times maintain the insurance coverage described on Exhibit B with financially sound
and reputable insurance companies, together with any other insurance that the Manager generally provides or extends to its subsidiaries.
During the Term of this Agreement, the Manager will, subject to reimbursement by the Owner for the incremental cost thereof, take
the actions necessary to cause the Owner to be Insured, under the insurance policies described, and as indicated, in Exhibit
B. As used herein, the term “Insured” means the Owner will be (i) a named insured to the extent
possible, (ii) in the case of workers’ compensation, named as an alternate employer, or (iii) an additional insured in all
other cases; provided, however, that the Manager will take reasonable commercial efforts to provide for endorsement
of the Owner as a named insured under each policy described in Exhibit B.

 

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ARTICLE
VIII

Personnel Administration

 

Section 8.1           General.
The Manager shall have in its employ or available to it during the Term of Agreement a sufficient number of qualified technical,
operating, land, financial, marketing, accounting, clerical, administrative and field Employees, and other personnel to enable
it to supply all the services as herein provided.

 

Section 8.2           Responsibility.
All matters pertaining to the employment, supervision compensation, promotion and discharge of any Employees or personnel
of the Manager or its Affiliates are the responsibility of the Manager, which is (or its Affiliate is) in all respects
the employer of any such Employees. All such employment arrangements are solely the concern of the Manager and, if applicable,
its Affiliate(s) and, other than as expressly set forth in Exhibit B hereto, the Owner shall have no liability with
respect thereto.

 

ARTICLE
IX

Investment Opportunities

 

Section 9.1           Investment
Opportunities.

 

(a)          Commensurate
with the Gross Proceeds raised by AECP LP from time to time that have not been previously invested in Property Acquisitions or
reserved for Development Activities or other investment in any of the Assets or the payment of fees or expenses pursuant to this
Agreement or the Partnership Agreement, the Manager shall offer to Owner the right to purchase any Property Acquisition that (i)
the Manager identifies in accordance with the performance of Item 14 of its Management Services as described in Exhibit
A or that otherwise becomes available to the Manager and (ii) which the Manager believes may be appropriate for the Owner.

 

(b)          The
Manager shall offer to the Owner any Property Acquisition referred to in Section 9.1(a) in accordance with the terms of
Section 9.1(c). Upon receipt of any Proposal, Owner shall decide in accordance with Section 9.1(d) whether or not
to approve the Property Acquisition that is the subject of such Proposal. If Owner determines not to approve or otherwise fails
to approve such Property Acquisition within five (5) Business Days after the Owner’s receipt of a Proposal (a “Rejected
Proposal”), then the Manager or any of its Affiliates may pursue and, if successful in such pursuit, participate
in such Property Acquisition.

 

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(c)          If
the Manager proposes to refer a Property Acquisition or other acquisition of oil and gas properties to the Owner, the Manager shall
submit a written report (“Proposal”) to Owner for its consideration. Such Proposal shall be in the form
or format that the Manager generally uses, or will have used when presenting any such Property Acquisition or other acquisition
of oil and gas properties to Owner and shall contain the Economic Run for the Property Acquisition or other acquisition of oil
and gas properties, the initial Budget or any revisions to the Budget as provided in Section 9.2, and all other information
determined by the Manager or requested by Owner as necessary or appropriate to describe the terms, economics, oil and gas reserve
information, and other information requested by Owner as necessary or appropriate to evaluate and consider the Proposal. Additionally,
if the Manager or an Affiliate of the Manager has an existing economic interest in more than 5% of the properties that are the
subject of the Proposal, the Manager shall disclose this fact to Owner in the Proposal. Information submitted to Owner in the Proposal
shall include, without limitation, the Economic Run data with respect to the acquisition that is the subject of the Proposal authorization(s)
for expenditure, budgeting information, a recommendation with respect to the amount of indebtedness to be incurred pursuant to
the Approved Credit Facility, key terms related to such Proposal, including, without limitation, whether such terms deviate or,
to Manager’s knowledge, are expected to deviate from the General Parameters, if applicable, and any other available information
determined by the Manager to be relevant to Owner’s investment decision or requested by Owner.

 

(d)          Upon
receipt of a Proposal, Owner shall have five (5) Business Days to notify the Manager of Owner’s intent to make the Property
Acquisition as described in the Proposal. If Owner does not provide such notice to the Manager within such time, Owner shall be
deemed to have rejected the Property Acquisition that is the subject of the Proposal and such Proposal shall thereafter constitute
a Rejected Proposal.

 

Section 9.2           Initial
Budget; Revisions to Budget.

 

(a)          Initial
Budget. In connection with the first Property Acquisition, the Manager shall prepare a Draft Budget for operation of the properties
proposed to be acquired and submit such Draft Budget to Owner with the Proposal as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the Draft Budget and such Draft Budget shall then constitute
the approved Budget as contemplated by Section 3.1.

 

(b)          Revised
Budgets. In connection with each Property Acquisition following the first Property Acquisition, the Manager may prepare an
amendment to the then existing approved Budget to reflect the additional costs and expenses associated with the ownership of the
Assets proposed to be acquired and submit such proposed revision to the Owner as contemplated by Section 9.1. If the Owner
approves the Property Acquisition, Owner shall be deemed to have approved the revision to the Budget and such revised Budget shall
then constitute the approved Budget as contemplated by Section 3.2.

 

ARTICLE
X

Term; Termination

 

Section 10.1         Term.
The initial term of this Agreement will begin on the Effective Date and, subject to earlier termination in accordance with Section
10.2, shall continue for so long as the Owner holds any Assets (the “Initial Term”), and so long
after the Initial Term as the Parties may mutually agree; provided, however, that following the Initial Term, either
Party may terminate this Agreement upon not less than 30 days’ prior written notice to the other (the Initial Term together
with any such extension thereafter, the “Term”). Except as expressly provided herein, the expiration
or earlier termination of this Agreement shall not relieve any Party of any obligation or liability arising prior to such expiration
or termination.

 

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Section 10.2         Termination.

 

(a)          This
Agreement shall terminate (the “Termination Date”) on the first to occur of (i) the date on which
the Parties mutually agree to terminate this Agreement and (ii) the termination date set forth on any notice given in accordance
with Section 10.2(b) or Section 10.2(c) (each, a “Termination Notice”). Each Termination
Notice shall be provided in writing and set forth in reasonable detail the basis for the termination and the Termination Date.
If requested by Owner, the Manager, following its receipt of a Termination Notice, shall continue to perform the Services in accordance
with this Agreement for a period not to exceed 120 days of such notice and, in such event, the date on which such continued Services
are no longer necessary (as specified by Owner in the Termination Notice) will be considered the Termination Date for purposes
hereof.

 

(b)          Owner
may terminate this Agreement by delivery of a Termination Notice to the Manager following the occurrence of any of the following
events:

 

		(i)	the dissolution and liquidation of AECP LP in connection
with the sale of all or substantially all of the Owner’s assets;

 

		(ii)	during the Bankruptcy of the Manager;

 

		(iii)	at any time during the 30 days after a breach by the
Manager of its obligations hereunder that has had or, if continued, is reasonably likely to have a Material Adverse Effect, which
breach remains uncured 60 days following the receipt by the Manager of written notice of such breach by the Owner;

 

		(iv)	at any time within 15 Business Days following (A) the
determination by a court of competent jurisdiction that the Manager has defrauded AECP LP or Owner or stolen or misappropriated
any of the Assets or funds of Owner and (B) such circumstances have not been cured or remedied (which may include a cash payment)
by Manager within 30 days following such judicial determination; or

 

		(v)	the General Partner is removed as the general partner
of AECP LP by the majority vote of the Common Units and the General Partner did not vote in favor of or otherwise approve such
removal.

 

(c)          The
Manager may terminate this Agreement by delivery of a Termination Notice to Owner (i) during or following the Bankruptcy of the
Owner or (ii) upon a material breach by Owner of its obligations hereunder that remains uncured 30 days following the receipt by
Owner of notice of such breach by the Manager.

 

    	28

    	 

    

 

Section 10.3         Transition
Services. The Manager shall, until the Termination Date, continue to provide the Management Services in accordance with this
Agreement and upon request from Owner will reasonably cooperate with Owner in the transition of such services to a new manager
appointed by Owner by (i) turning over Owner’s books and records and any other relevant information reasonably requested
of the Manager, (ii) if applicable, assigning to Owner all of the Manager’s rights under subcontracts and other contractual
arrangements entered into by the Manager in connection with the performance of the Services and (iii) facilitating the transfer
of Well operations and the management of the Owner’s Assets to the successor manager. At the end of the Term, the Manager
shall deliver to Owner the Records. Following the termination of this Agreement, Owner shall have the right to appoint any other
Person as manager to perform the Management Services by whatever method Owner may deem expedient or appropriate. Following the
termination of this Agreement, the Manager shall have no further rights under this Agreement (except as provided in Section
10.4) and shall not be entitled to receive any further payments under this Agreement.

 

Section 10.4         Effect
of Termination. The termination of this Agreement shall not relieve any Party from any expense, liability or other obligation
or remedy therefor that has accrued or attached prior to the Termination Date and the following provisions of this Agreement shall
survive such termination: this Section 10.4, each of the indemnity obligations, the limitation on consequential and other
damages under this Section 12.4 and the provisions of Article XII, which provisions shall survive indefinitely. To
the extent this Agreement is terminated by the Owner pursuant to Section 10.2(b)(iv) hereof, then pursuant to Section 5.8 of the
Partnership Agreement, Holdings shall forfeit any incentive distribution rights it holds as of the date of such termination.

 

ARTICLE
XI

Indemnification; Liability of the Parties

 

Section 11.1         Indemnification.
From and after the Effective Date, the Parties will indemnify each other as follows:

 

(a)          Owner
Indemnification. The Owner shall indemnify, defend, reimburse and hold harmless the Manager and its Affiliates and their respective
officers, managers, representatives, agents, members, employees (together with the Manager, the “Manager Indemnified
Parties”) from and against and in respect of any and all claims, liabilities, losses, costs, expenses (including
reasonable attorneys’ fees and costs of investigation) or damages (collectively, “Liabilities”)
incurred or suffered by a Manager Indemnified Party in connection with, arising out of, or relating to, directly or indirectly,
its performance of the Management Services and or Operating Services hereunder, EVEN IF SUCH LIABILITIES AROSE IN WHOLE OR IN PART
FROM THE ACTIVE, PASSIVE, SOLE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY OR OTHER FAULT OF A MANAGER INDEMNIFIED PARTY, except
that such indemnity will not apply in cases in which any such Liabilities are determined by a final and non-appealable judgment
of a court of competent jurisdiction to have resulted from the gross negligence, or intentional misconduct of the Manager or any
other Manager Indemnified Party.

 

(b)          Manager
Indemnification. The Manager shall indemnify, defend and hold harmless AECP GP, AECP LP, the Owner, its Subsidiaries and Affiliates
and their respective officers, directors, representatives, agents, members and employees (collectively, “Owner Indemnified
Parties”) from and against and in respect of any and all Liabilities incurred or suffered by (a) an Owner Indemnified
Party in connection with, arising out of, or relating to, the gross negligence, reckless or intentional misconduct of the Manager
or another Manager Indemnified Party in the Manager’s performance of the Management Services.

 

    	29

    	 

    

 

Section 11.2         EXTENT
OF INDEMNIFICATION; EXPRESS NEGLIGENCE RULE. WITHOUT LIMITING OR ENLARGING THE SCOPE OF THE INDEMNIFICATION, DEFENSE AND
ASSUMPTION PROVISIONS SET FORTH IN THIS AGREEMENT, TO THE FULLEST EXTENT PERMITTED BY LAW, AN INDEMNIFIED PARTY SHALL BE ENTITLED
TO INDEMNIFICATION HEREUNDER IN ACCORDANCE WITH THE TERMS OF SECTION 11.1 REGARDLESS OF WHETHER THE ACT, OCCURRENCE OR CIRCUMSTANCE
GIVING RISE TO ANY SUCH INDEMNIFICATION OBLIGATION IS THE RESULT OF THE SOLE, ACTIVE, PASSIVE, CONCURRENT OR COMPARATIVE NEGLIGENCE,
STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE) OR OTHER FAULT OR VIOLATION OF ANY LAW OF OR BY ANY SUCH OWNER INDEMNIFIED
PARTY, PROVIDED, HOWEVER, THAT NO SUCH INDEMNIFICATION SHALL BE APPLICABLE TO THE EXTENT OF ANY GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT OF THE INDEMNIFIED PARTY.

 

Section 11.3         Indemnification
Procedure. If any indemnified party discovers or otherwise becomes aware of an indemnification claim arising under this Agreement,
such party will give written notice to the indemnifying Party, specifying such claim, and may thereafter exercise any remedies
available to such indemnified party under this Agreement; provided, however, the failure of any indemnified party
to give notice as provided herein will not relieve the indemnifying Party of any obligations hereunder, to the extent the indemnifying
Party is not materially prejudiced thereby. Further, promptly after receipt by an indemnified party hereunder of written notice
of the commencement of any action or proceeding with respect to which a claim for indemnification may be made against the indemnifying
Party, the indemnified party will give written notice to the indemnifying Party of the commencement of such action, accompanied
by a copy of all papers, if any, served with respect to the action or proceeding; provided, however, the failure
of any indemnified party to give notice as provided herein will not relieve the indemnifying Party of any obligations hereunder,
to the extent the indemnifying Party is not materially prejudiced thereby.

 

Section 11.4         Limitation
on Consequential and Other Damages.

 

(a)          NEITHER
PARTY shall be entitled to recover from THE OTHER Party, or such Party’s respective Affiliates any indirect, consequential,
punitive or exemplary damages or damages for lost profits of any kind arising under or in connection with this Agreement or the
transactions contemplated hereby, except to the extent any such Party suffers such damages (including costs of defense and reasonable
attorney’s fees incurred in connection with defending of such damages) to a Third Party, which damages (including costs of
defense and reasonable attorneys’ fees incurred in connection with defending against such damages) shall not be excluded
by this provision as to recovery hereunder. Subject to the preceding sentence, each Party, on behalf of itself and each of its
Affiliates waives any right to recover punitive, special, exemplary and consequential damages, including damages for lost profits,
arising in connection with or with respect to this Agreement or the transactions contemplated hereby.

 

    	30

    	 

    

 

(b)          The
amount of damages for which an indemnified Party is entitled to indemnity under this Article XII shall be reduced by the
amount of insurance proceeds received by the indemnified Party or its Affiliates with respect to such damages (net of any collection
costs and net of any increase in premiums resulting from claims with respect to such damages), and, to the extent insurance coverage
for such damages is available under insurance policies of the indemnified Party and not under the insurance policies of the indemnifying
Party, the indemnified Party will use commercially reasonable efforts to assert claims under such insurance coverage with respect
to such damages.

 

Section 11.5         Manager
Liability. Subject to the rights of the Owner to terminate this Agreement, in no event shall the Manager or its Affiliates
have any liability under this Agreement, any Operating Agreement or applicable Law, with respect to the provision of the Services
under this Agreement or acting as contract operator for any claim, damage, loss or liability sustained or incurred in connection
with its operations with respect to the Assets or the provision of the Services or any breach of any provision of this Agreement
regarding the standard of performance of the Manager in performing the Services or operations under this Agreement (including any
breach of Section 3.2) or any Operating Agreement, except to the extent (and only to the extent) such liability is attributable
to or arises from the gross negligence or intentional misconduct of any Manager Indemnified Parties, and the Owner, on its own
behalf and on behalf of its Affiliates, releases the Manager and its Affiliates from such liability, except to the extent (and
only to the extent) such liability is attributable to or arises from the gross negligence or intentional misconduct of any Manager
Indemnified Party. Nothing in this Section 11.5 shall be deemed to be a release by the Owner or any of its Affiliates
of any claims against the Manager arising from a breach by the Manager of its obligation to pay amounts owing to the Owner pursuant
to the terms hereof.

 

Section 11.6         Conspicuous.
THE PARTIES AGREE THAT, TO THE EXTENT REQUIRED BY APPLICABLE LAW TO BE EFFECTIVE OR ENFORCEABLE, THE PROVISIONS IN THIS AGREEMENT
IN ALL-CAPS FONT ARE “CONSPICUOUS” FOR THE PURPOSE OF ANY APPLICABLE LAW.

 

ARTICLE
XII

Force Majeure

 

If a Party is rendered
unable, wholly or in part, by reason of a Force Majeure Event to perform its obligations under this Agreement, other than obligations
to make payments or provide indemnification or defense when due hereunder, then such Party’s obligations shall be suspended
to the extent affected by the Force Majeure Event. Any Party claiming any Force Majeure Event shall provide prompt written notice
thereof to the other Party including full particulars of such Force Majeure Event.

 

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ARTICLE
XIII

Miscellaneous

 

Section 13.1         Time.
The Parties agree that time is of the essence in the performance of this Agreement.

 

Section 13.2         Independent
Contractor. The Manager and the Owner are independent contractors and this Agreement shall not be construed as one of partnership,
agency, joint venture, or employment between the Manager and the Owner, and the rights, duties, obligations and liabilities of
each of the Parties under this Agreement shall be individual, not collective or joint. As between the Parties, (a) it is not the
intention of the Parties to create, nor shall this Agreement be deemed or construed to create, a mining or other partnership, joint
venture, association or trust, (b) the Manager is not the actual or implied agent for Owner, and (c) subject to the other express
provisions of this Agreement and the right of the Owner to direct the Manager with respect to the ends to be accomplished, the
Manager shall have the exclusive (i) authority to control and direct the specific means, method and manner of performance
of the details of the Management Services to be provided hereunder, and (ii) responsibility and liability for (A) the direction
and supervision of its personnel, (B) the salary, employee benefits, other compensation and related costs of such Manager
personnel and (C) the collection and payment of any payroll taxes or contributions or taxes for unemployment insurance, workers’
compensation, pensions and social security for the Manager personnel that are imposed by any Governmental Authority.

 

Section 13.3         Notices.
All notices and communications required or permitted under this Agreement shall be in writing addressed as indicated below, and
any communication or delivery hereunder shall be deemed to have been duly delivered upon the earliest of: (a) actual receipt by
the Party to be notified; (b) if sent by U.S. certified mail, postage prepaid, return receipt requested, then the date shown as
received on the return notice; (c) if by facsimile transmission, then upon confirmation by the recipient of receipt; (d) if by
email, then upon an affirmative reply by email by the intended recipient that such email was received (provided that, for the avoidance
of doubt, an automated response from the e-mail account or server of the intended recipient shall constitute an affirmative reply);
or (e) if by Federal Express overnight delivery (or other reputable overnight delivery service), the date shown on the notice of
delivery. Addresses for all such notices and communication shall be as follows:

 

	To the Manager:	
        AECP Management, LLC

        301 N.W. 63rd Street

        Suite 600

        Oklahoma City, Oklahoma 73116

        Attention:  Robert W. Kelly II

        General Counsel

        Phone: (405) 818-8000

        Fax:  (405) 818-8040

        Email: bob.kelly@aep-lp.com

 

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	With a copy to:	
        AECP Management, LLC

        301 N.W. 63rd Street

        Suite 600

        Oklahoma City, Oklahoma 73116

        Attention: Scott R. Mueller

        Phone: (405) 818-8000

        Fax:  (405) 818-8040

        Email: scott.mueller@aep-lp.com

	 	 
	To AECP LP:	American Energy Capital Partners, LP
	 	c/o AECP GP LLC
	 	 	 	 
	 	New York, NY	 	 
	 	Attention:	General Counsel	 
	 	Phone:	 	 	 
	 	Fax:	 	 	 
	 	Email:	 	 	 
	 	 	 	 	 
	With a copy to:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 
	To Owner:	AECP Operating Company, LLC]
	 	 	 	 
	 	New York, NY	 	 
	 	Attention:	General Counsel	 
	 	Phone:	 	 	 
	 	Fax:	 	 	 
	 	Email:	 	 	 
	 	 	 	 	 
	With a copy to:	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

Either Party may, upon written notice to
the other Party, change the address(es) and person(s) to whom such communications are to be directed.

 

Section 13.4         Cooperation.
Prior to termination of this Agreement and at all times following the consummation of this Agreement, the Parties agree to execute,
acknowledge and deliver, or cause to be executed, acknowledged and delivered, such documents and instruments and do, or cause to
be done, such other acts and things as may reasonably be requested by any Party to this Agreement, or are otherwise necessary or
advisable, to assure that the benefits of this Agreement are realized by the Parties and that the Parties carry out their obligations
under this Agreement and any document or other instrument delivered pursuant hereto.

 

    	33

    	 

    

 

Section 13.5         No
Third Party Beneficiaries. Except for the indemnification rights under Article XI, nothing in this Agreement, express
or implied, is intended to confer upon anyone, other than the Parties hereto and their respective successors and assigns, any rights
or remedies under or by reason of this Agreement or to constitute any Person a Third Party beneficiary of this Agreement.

 

Section 13.6         Cumulative
Remedies. Subject to the other provisions hereof, no failure on the part of any Party to this Agreement to exercise and no
delay in exercising any right hereunder will operate as a waiver thereof, nor will any single or partial exercise by any Party
hereto of any right hereunder preclude any other or further right of exercise thereof or the exercise of any other right.

 

Section 13.7         Governing
Law; Jurisdiction; Waiver of Jury Trial. THE VALIDITY, CONSTRUCTION, INTERPRETATION AND EFFECT OF THIS AGREEMENT SHALL BE GOVERNED
BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS, WITHOUT REGARD TO CONFLICTS RULES WHICH WOULD OTHERWISE APPLY
THE LAWS OF ANOTHER JURISDICTION. EACH PARTY AGREES THAT IT SHALL BRING ANY ACTION OR PROCEEDING IN RESPECT OF ANY CLAIM ARISING
OUT OF OR RELATED TO THIS AGREEMENT, WHETHER IN TORT OR CONTRACT OR AT LAW OR IN EQUITY, EXCLUSIVELY IN ANY U.S. FEDERAL OR STATE
COURT IN THE STATE OF TEXAS AND (A) IRREVOCABLY SUBMITS TO THE JURISDICTION OF SUCH COURTS, (B) WAIVES ANY OBJECTION TO LAYING
VENUE IN ANY SUCH ACTION OR PROCEEDING IN SUCH COURTS, (C) WAIVES ANY OBJECTION THAT SUCH COURTS ARE AN INCONVENIENT FORUM
OR DO NOT HAVE JURISDICTION OVER IT AND (D) AGREES THAT SERVICE OF PROCESS UPON IT MAY BE EFFECTED BY MAILING A COPY THEREOF POSTAGE
PREPAID, REGISTERED OR CERTIFIED WITH RETURN RECEIPT REQUESTED AT THE ADDRESS SPECIFIED IN SECTION 13.3. THE FOREGOING CONSENTS
TO JURISDICTION AND SERVICE OF PROCESS SHALL NOT CONSTITUTE GENERAL CONSENTS TO SERVICE OF PROCESS IN THE STATE OF TEXAS FOR ANY
PURPOSE EXCEPT AS PROVIDED HEREIN AND SHALL NOT BE DEEMED TO CONFER RIGHTS ON ANY PERSON OTHER THAN THE PARTIES. FURTHER, EACH
PARTY HEREBY KNOWINGLY AND INTENTIONALLY, IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING
UNDER, ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

Section 13.8         Entire
Agreement. This Agreement constitutes the entire agreement between the Parties with respect to the subject matter hereof, supersedes
any prior agreements with respect to the subject matter hereof and there are no agreements, understandings, warranties or representations
except as set forth herein.

 

Section 13.9         Assignment.
Neither Party may assign any of its rights or delegate any of its duties under this Agreement without the express written consent
of the other Party, except that the Manager may assign any such rights or delegate any such duties to any of its Affiliates. Any
assignment of rights or delegation of duties under this Agreement in violation of this section shall be void ab initio.

 

    	34

    	 

    

 

Section 13.10         Amendment.
Neither this Agreement, nor any of the provisions hereof can be changed, waived, discharged or terminated, except by an instrument
in writing hand-signed by the Party against whom enforcement of the change, waiver, discharge or termination is sought. In addition,
each of AECP LP and AECP GP covenant and agree that, without the prior written consent of the Manager, it shall not amend, modify
or restate the Partnership Agreement if the effect thereof would be likely to adversely affect the Manager or any of its Affiliates
or the rights of the Manager or any such Affiliate under this Agreement or the Partnership Agreement and any amendment, modification
or restatement effected without such prior written consent of the Manager shall be void and of no force or effect with respect
to the Manager; provided, however, that the prior written consent of the Manager shall not be required in respect
of any amendment made to the Partnership Agreement (even if it would be likely to adversely affect the Manager or any of its Affiliates)
pursuant to Section 13.13(vi) of the Partnership Agreement that is made without the approval of AECP GP and is effected by approval
of a majority in interest of the holders of Common Units.

 

Section 13.11         Severability.
If any clause or provision of this Agreement is illegal, invalid or unenforceable under any present or future law, the remainder
of this Agreement will not be affected thereby. It is the intention of the Parties that if any such provision is held to be illegal,
invalid or unenforceable, there will be added in lieu thereof a provision as similar in terms to such provisions as is possible
to make such provision legal, valid and enforceable.

 

Section 13.12         Waiver.
Waiver of performance of any obligation or term contained in this Agreement by any Party, or waiver by one Party of the other’s
default hereunder, will not operate as a waiver of performance of any other obligation or term of this Agreement or a future waiver
of the same obligation or a waiver of any future default.

 

Section 13.13         Counterparts;
Facsimiles; Electronic Transmission. This Agreement may be executed in multiple counterparts, each of which will be an original
instrument, but all of which will constitute one agreement. The execution and delivery of this Agreement by any Party may be evidenced
by facsimile or other electronic transmission (including scanned documents delivered by email), which shall be binding upon all
Parties.

 

Section 13.14         Corporate
Opportunity. AECP LP and the Owner acknowledge and agree that the Manager and its Affiliates engage and intend to continue
to engage in the exploration, development, production, acquisition and disposition of oil and gas properties in North America
and the marketing of production from such properties, which activities may be in competition with the Business of AECP LP and
the Owner. AECP LP and the Owner acknowledge, covenant and agree that except for the obligation set forth in Article IX
of this Agreement, notwithstanding anything to the contrary in this Agreement or any implied duty under applicable Law, in equity
or otherwise, (a) none of the Manager or any of its Affiliates that acquire knowledge of a potential oil and gas lease, acquisition,
or investment opportunity, or exploration or development transaction involving oil and gas properties and that may be an opportunity
for AECP LP or the Owner shall have any duty to communicate or offer such opportunity to AECP LP or the Owner, (b) it shall be
deemed not to be breach of any duty or any other obligation of any type whatsoever, express or implied, under this Agreement or
applicable Law, of the Manager or any of its Affiliates to not communicate or offer such opportunity to AECP LP or the Owner,
and (c) none of the Manager or any of its Affiliates shall be liable to AECP LP or the Owner or any other Person by reason
of the fact that the Manager or any of its Affiliates pursues or acquires for itself or its Affiliates, or otherwise directs,
any such opportunity to another Person or does not communicate such opportunity or information to AECP LP or the Owner.

 

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Section 13.15         Joint
Acknowledgement. This written Agreement represents the final agreement between the Parties and may not be contradicted by evidence
of prior, contemporaneous or subsequent oral agreements of the Parties. There are no unwritten oral agreements between the Parties.

 

[Remainder of
Page Intentionally Left Blank

Signature Pages Follow]

 

    	36

    	 

    

 

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the Effective Date.

 

	 	MANAGER:
	 	 	 
	 	AECP Management, LLC
	 	an Oklahoma limited liability company
	 	 	 
	 	By:	 
	 	 	Robert W. Kelly II
	 	 	General Counsel
	 	 	 
	 	AECP LP
	 	 	 
	 	American Energy Capital Partner, LP
	 	a Delaware limited partnership
	 	 	 
	 	By:	AECP GP LLC
	 	 	its General Partner
	 	 	 
	 	By:	[                                                           ]
	 	 	Its:	 
	 	 	 	 
	 	OWNER:
	 	 	 
	 	AECP Operating Company, LLC
	 	a Delaware limited liability company
	 	 	 
	 	By:	 
	 	Its:	 

 

    	 

    	 

    

 

EXHIBIT A

SCOPE OF SERVICES

 

The “Services”
shall mean general management, administrative and operating services reasonably requested by and at the direction of Owner and
shall include, collectively, the Management Services and the Operating Services performed on behalf of the Owner and any Subsidiary,
and other service or activity agreed by Owner and the Manager. At all times, the Manager’s provision of the Management Services
and Operating Services shall be subject to the limitations set forth in this Agreement, and any other limits or restrictions mutually
agreed by Owner and the Manager.

 

The following services
shall constitute “Management Services”:

 

1.          General.
The Manager shall (a) execute and carry out any lawful decisions or courses of action that have been approved by Owner in writing,
(b) maintain the files and records for engineering, design, accounting, tax, regulatory, land and such other matters as are generally
necessary for the conduct of the business of the Owner, (c) assist and support Owner in general planning and budgeting activities
and (d) coordinate and manage the Owner’s reporting requirements for regulatory, tax, environmental or local compliance purposes.

 

2.          Overhead
Services. Manager will provide all general and administrative overhead services required for the Owner to conduct their respective
business and operations.

 

3.          Management.
The Manager shall provide services in respect of the management of the Owner’s business and its Assets as may be requested
by Owner, including (a) services necessary to satisfy the Owner’s contractual obligations and obligations under applicable
Law and permits and Annual Budgets, (b) making recommendations relating to the improvement of the Owner’s operations and
maintenance (including major maintenance) of its assets and (c) the management and administration of the Owner’s contracts
and liaising with any Person that is party to a material contract with the Owner.

 

4.          Liens.
The Manager shall assist Owner in keeping the Owner’s Assets free and clear of all liens and encumbrances excluding liens
and encumbrances arising in the ordinary course of business.

 

5.          Funds
and Funds Management. The Manager shall (a) supervise all disbursements from, and to the extent of the availability of, funds
provided by the Owner necessary to pay its debts and obligations and (b) open accounts in the name of the Owner and deposit, withdraw
and maintain funds provided by Owner or its members, in banks, savings and loan associations or other financial institutions. The
Manager shall not under any circumstances commingle any funds received for the Owner or held for the account of the Owner with
the Manager’s or any other Person’s funds.

 

6.          Tax
and Accounting Services. The Manager shall (a) provide and oversee financial and tax reporting (including all tax work necessary
for Grant Thornton LLP to fulfill its obligations as “tax matters partner” under the Company Agreement or the Partnership
Agreement) and cash management services, (b) monitor the Owner’s compliance with its debt and financing documents and
(c) perform such other accounting services as Owner may reasonably request.

 

    	Exhibit A - 1

    	 

    

 

7.          IT
Services. The Manager shall provide (or cause to be provided) information technology services that are necessary for the Owner
to perform and otherwise complete its business activities, including services for (a) the management and maintenance of computer
networks and databases, technology systems, and phone networks and plans, (b) the development and implementation of plans and standards
relating to information technology and procurement, (c) the development and implementation of security policies and systems for
the computer databases and technology systems of the Owner and (d) the procurement and acquisition of any other information technology
services requested by Owner.

 

8.          Third
Party Services. The Manager shall (a) engage and manage outside legal, accounting and tax services for the Owner including,
at Owner’s request and direction, providing Owner with legal, accounting or tax counseling or recordkeeping as to the Owner’s
business activities, and at Owner’s request and direction, initiating, maintaining, investigating and defending any claims,
actions or proceedings to which the Owner is a party, (b) engage and manage engineering, operations and other technical consulting
services as required in connection with the Owner’s business and (c) engage environmental consulting services, including
services (i) advising and counseling Owner with respect to environmental compliance issues, including researching applicable environmental
Laws and (ii) assisting Owner in obtaining and maintaining compliance with any and all necessary environmental permits, registrations,
authorizations, licenses, approvals or consents from relevant organizations and governmental authorities.

 

9.          Regulatory.
The Manager shall (a) engage and manage regulatory consultants and cause the admission of Owner into regional and industry associations
if such admission would, in the judgment of Owner, be required or desirable for the operations of the Owner’s business, and
(b) with the approval of Owner, engage and manage representation in lobbying, studies, special or extraordinary sessions determined
to involve or be in the interest of the Owner, including assisting Owner in its dealings with governmental, semi-governmental,
administrative, fiscal or judicial bodies, departments, commissions, authorities, agencies or other entities having jurisdiction
or regulatory power over the Owner’s business activities.

 

10.         Insurance.
At the request of the Owner and at the Owner’s expense, the Manager shall procure the insurance required to be maintained
by the Owner under the NASAA Guidelines. The Manager shall make recommendations to Owner in respect of the types, amounts and content
of insurance necessary or desirable for Owner and its business or the business and Assets of the Owner. At the direction of Owner,
the Manager shall procure on behalf of Owner or the Owner insurance policies providing the coverage and in the amounts specified
by Owner, and maintain such policies in full force and effect. The Manager shall be named as an additional insured in respect of
all liability insurance policies maintained by the Owner, with waiver of subrogation.

 

11.         Supervision.
The Manager shall provide supervisory services for Owner or the Owner’s contractors and operators in connection with the
operation of the Owner’s business and Assets.

 

    	Exhibit A - 2

    	 

    

 

12.         Staffing.
As authorized, coordinated and approved by Owner (including pursuant to an Annual Budget), the Manager will contract out those
services most effectively and efficiently provided by third parties on behalf of the Owner.

 

13.         Compliance
with Credit Documentation. Upon the reasonable request by the Owner at any time or from time to time the Manager will assist
the Owner in the negotiation of an Approved Credit Facility subject to any applicable limitations thereon set forth in the Partnership
Agreement that the Manager has been notified by Owner apply in respect of such Approved Credit Facility. The Manager shall provide
a statement indicating the compliance, or failure to comply, of the Owner with any financial covenants, cash flow requirements,
maintenance ratios and reserve balances in any Approved Credit Facility for the periods covered by such financial statements.

 

14.         Business
Development. The Manager will use reasonable commercial efforts to identify Property Acquisitions for the Owner to directly
or indirectly acquire that the Manager believes may be an appropriate opportunity for the Owner. If the Owner elects in accordance
with Section 9.1 to pursue a Property Acquisition, Manager will use its commercially reasonable efforts to negotiate with
the Seller and submit to Owner for execution, a Purchase and Sale Agreement and other applicable transaction documents which, to
the extent reasonably possible, shall comply with the General Parameters. The Manager will provide Owner with each Proposal for
any Property Acquisition the information specified in Section 9.1(c), copies of all title reports and environmental reports
obtained by the Manager with respect to such Property Acquisitions and such other information that is available to the Manager
and that is reasonably requested by the Owner regarding such Property Acquisition, and upon the Owner’s request will meet
with the Owner and its advisors to discuss the evaluation any Property Acquisition pursued by the Owner.

 

15.         Sale
Preparation. At Owner’s request, the Manager will take such actions to prepare (and arrange for) all or any portion of
the Owner’s Assets to be sold or otherwise disposed of or liquidated (including through a dissolution or winding up of the
Owner).

 

16.         Financing
Coordination. At Owner’s request, at any time or from time to time, the Manager will take such actions (a) to investigate
and evaluate financing alternatives for (i) any Producing Property Acquisition, (ii) the ownership, development and operation
of any portion of the Owner’s Assets, or (iii) any refinancing of the foregoing, (b) will advise the Owner of financing alternatives
that the Manager believes to be appropriate under the circumstances for Owner’s consideration, and (c) at Owner’s request
will assist Owner in negotiating the final definitive terms of any Loan documents for execution by Owner and any of its affiliates
subject to any applicable limitations thereon set forth in the Partnership Agreement that the Manager has been notified by Owner
apply in respect of such Loan documents.

 

The following services
shall constitute “Operating Services”:

 

1.          Lease
Operations. The Manager shall perform all Lease Operations in accordance with the Standards set forth in Section 2.3.
The Manager shall manage the progress, evaluation and implementation of all projects (including multi-well drilling, workover and
recompletion projects and secondary/tertiary recovery projects) being carried out in connection with the performance of Lease Operations.

 

    	Exhibit A - 3

    	 

    

 

2.          The
Manager shall apply, pay for (subject to reimbursement by the Owner as set forth herein), obtain, and maintain in a timely manner
all approvals, authorizations, licenses and permits necessary or advisable for or in connection with the Owner’s ownership
of the Assets and operation of its Business (the “Permits”).

 

3.          Authorizations.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets acquires all permits, consents,
approvals, surface or other rights that may be required for or in connection with the conduct of the Lease Operations.

 

4.          Technical
Evaluation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets performs the technical,
geological, petroleum engineering and related evaluations that are necessary or appropriate under the Standards set forth in Section 2.3
to perform the Lease Operations and to evaluate proposed acquisitions of oil and gas properties by the Owner.

 

5.          Marketing
and Transportation. The Manager shall provide the oversight to assure that the operator of the Owner’s Assets arranges
for the purchase, transportation and storage of all hydrocarbons and all supplies, materials and equipment needed in order to perform
the Lease Operations.

 

6.          Safety.
The Manager shall provide the oversight to assure that the operator of the Owner’s Assets takes customary measures consistent
with the Standards set forth in Section 2.3 for the protection of life, health, the environment and property in the case
of an emergency.

 

7.          Releases.
The Manager shall provide the oversight necessary or appropriate to assure that the operator of the Owner’s Assets reports
any spill and environmental releases to the appropriate state or federal regulatory agencies as required by applicable Law.

 

8.          Information.
The Manager shall maintain the following data and reports as they are produced or compiled from Lease Operations: (a) copies of
all logs and surveys furnished by the operator(s) of the Owner Assets; (b) regular drilling, workover or similar operations reports
furnished by the operator(s) of Owner’s Assets; (c) copies of all plugging reports; (d) copies of all geological and
geophysical maps and reports; (e) well tests, completion and similar operations reports furnished by the operator(s) of Owner’s
Assets; (f) if prepared, engineering studies, development schedules and annual progress reports on development projects; (g) field
and well performance reports, including reservoir studies and reserve estimates; (h) lease documents, contracts, agreements, title
instruments and title files; and (i) such additional information as would be maintained by a Reasonably Prudent Operator.

 

    	Exhibit A - 4

    	 

    

 

EXHIBIT B

INSURANCE

 

    	Exhibit B

    	 

    

 

EXHIBIT C

 

COST REIMBURSEMENT

 

In addition to the payment of costs and
expenses incurred in connection with the provision of Services under this Agreement as expressly set forth in Section 5.2
of this Agreement, the Manager shall be responsible to pay without reimbursement of any kind from the Owner, all of the following:

 

Personnel salaries and bonuses

Personnel burdens and benefits

Pension, retirement and insurance
plans

Unemployment, payroll and other
taxes

Administrative contractors or
consultants

Office rent and occupancy costs

Office equipment and rentals

Office supplies

Office utilities

Data processing

Office maintenance and repairs

Employee parking

Telephone and communications

Postage and delivery expense

Business meals

Professional dues and subscriptions

Training expenses

Club memberships

Computer and software support

Payroll and other fees

Banking and industry relationships

General land services (unless
associated with a Proposal and other than contract land services)

 

Except to the extent that the following
Services are included within the items for which the Manager is responsible as provided above, the Manager shall be entitled to
reasonable reimbursement in accordance with Section 5.2 of the Management Agreement for the following out-of-pocket expenses
to the extent such costs and expenses are incurred in accordance with the terms of the Agreement and any applicable joint operating
agreement or applicable law:

 

Audit expense

Independent geological, geophysical
and engineering services

Tax return services

Investor reporting expense

Legal services (other than legal
services for prosecuting or defending claims regarding breach of this Agreement or claims brought by employees, consultants, officers,
directors or agents or in formation of the Manager)

Outsourced accounting services

 

    	Exhibit C - 1

    	 

    

 

Contract land services

Acquisition and due diligence
costs - engineering, title, general land services associated with a Proposal, third-party consultants, environmental, broker fees,
travel, meals and lodging directly related to Producing Property Acquisitions for the Owner

Divestiture costs ‒ engineering,
title, third-party consultants, financial advisors, environmental, broker fees, travel, meals and lodging directly related to Assets
of the Owner

Formation and offering costs
of the Owner

Travel costs associated with
Owner meetup or meeting with any Investors

Bank services, including without
limitation, the Approved Credit Facility and any amendment, restatement or replacement thereof and any waiver thereunder

COPAS overhead fees and standard
district office expenses rebillable under the applicable operating agreement

Insurance

Franchise or state taxes

Third Party marketing fees

Risk management expenses

 

    	Exhibit C - 2

    	 

    

 

EXHIBIT D

OPERATING AGREEMENT

 

    	Exhibit D

    	 

    

 

EXHIBIT E

FORM OF POWER OF ATTORNEY

 

    	Exhibit E

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