AGREE M ENT O F P URC H ASE AND SALE
by and a m ong
I ND I G O GR O U P I NC .
(“ S e ll e r ” )
and
LAND VEN T URE P ARTNERS, LLC
( “ B uy e r ”) A pril 13, 2 0 16
{ 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
A R T ICLE 1 S ALE AND PURCHASE OF T HE ASSE T S ..................................................................... 1
A R T ICLE 2 CLO S I NG A ND CLO S I N G D A T E .................................................................................... 1
A R T ICLE 3 T RANSFER OF T HE AS S E T S .......................................................................................... 1
3.1 A ss e t s t o B e A cq u i r ed ............................................................................................................... 1
3.2 Ex cl u d ed A s s e t s ......................................................................................................................... 3
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A R T IC LE 4 |
P A Y M ENT FOR T HE AS S E T S AND ASSU M P T I ON OF CE RT A I N L I A B I L I T I E S ...................................................................................................................... 3 |
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4.1 Pu r ch a s e P ri c e ........................................................................................................................... 3
4.2 Pay m ent of t he P u r c h a s e P r i ce .................................................................................................. 3
4.3 L i a b i l i t i es and A g r ee m en t s of S e ll e r ......................................................................................... 4
A R T ICLE 5 REPRESEN T A T I ONS A N D W ARRAN T I ES OF SE L LER .............................................. 4
5.1 C o r po r a t e S t an d i n g , Po w er and A u t h o r it y ................................................................................. 4
5.2 A u t ho r i z a t i on o f A g r ee m en t ; N o B r ea c h ................................................................................... 4
5.3 B i nd i ng O b l i g a ti o ns .................................................................................................................. 4
5.4 C o m p li an c e wi t h L a w s .............................................................................................................. 4
5.5 L i t i g a ti on ................................................................................................................................... 5
5.6 Ex i s ti ng R o y a lt y A g r ee m en t s .................................................................................................... 5
5.7 O F A C ......................................................................................................................................... 5
5.8 O il , G as and Mi n e r al L e a s e s ..................................................................................................... 5
5.9 T i t l e ........................................................................................................................................... 6
5.10 P r e f e r e n t i al R i g h t s ..................................................................................................................... 6
5. 1 1 N o b a n k r up t cy or i n s o l v en c y .................................................................................................... 6
5.12 J u d g m en t s and P r o cee d i n g s ....................................................................................................... 6
5.13 L i ce n s es and P e r m it s ................................................................................................................. 6
5.14 C on s e n t s .................................................................................................................................... 6
5.15 Se l l e r ’ s O p e r a t i ons .................................................................................................................... 7
5.16 T ax e s .......................................................................................................................................... 7
5.17 En v ir on m en t al M a tt e rs . ............................................................................................................. 7
5.18 R i g ht t o O p e r a ti o ns ................................................................................................................... 7
A R T ICLE 6 REPRESEN T A T I ONS A N D W ARRAN T I ES A ND R EL A T ED CO V ENA N T S
AND AGREE M EN T S OF BUYE R .................................................................................... 7
6.1 C o m p a ny S t and i ng .................................................................................................................... 7
6.2 A u t ho r i z a t i on o f A g r ee m en t ; N o B r ea c h .................................................................................. 7
6.3 C oope r a t i on wi t h S e l l e r ............................................................................................................. 7
6.4 A ss u m p ti on by B u y er ................................................................................................................ 7
6.5 B i nd i ng O b l i g a ti o ns .................................................................................................................. 8
A R T ICLE 7 CONSEN T S AND GO V ERN M EN T AL F I L INGS ............................................................ 8
A R T ICLE 8 CO V ENAN T S OF SELL E R............................................................................................... 8
8.1 P r e s e r v a t i on of A ss e t s t o b e A cqu i r ed ....................................................................................... 8
8.2 L i t i g a ti on ................................................................................................................................. 10
8.3 O il , G as and Mi n e r al L e a s e s ................................................................................................... 10
8.4 V i o l a t i o n s of L aw .................................................................................................................... 10
8.5 Ex cl u s i v it y ............................................................................................................................... 10
-i- { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
A R T IC LE 9 IND E M N I F IC A T IO N ....................................................................................................... 10
9.1 Se l l e r ’ s I nd e m n it y ................................................................................................................... 10
9.2 B u y e r ’ s I nd e m n it y ................................................................................................................... 11
9.3 N o ti c e t o I nd e m n if y i ng Pa rt y .................................................................................................. 11
9.4 Exp i r a t i on o f I nd e m n it y R i g h t s ............................................................................................... 11
9.5 L i m it a t i on o f R e m ed i es ........................................................................................................... 11
9.6 Sp e c i f i c P e rf o r m an c e W i t h R e s p e c t t o S e ll e r ’ s C l o s i ng O b li g a t i on ....................................... 12
9.7 L i qu i d a t ed D a m a g es ................................................................................................................ 12
A R T ICLE 10 CON D I T I ONS T O OB L I G A T I ONS OF B U YER ............................................................ 13
10.1 R ep r e s en t a t i ons and W a rr a n t i e s ............................................................................................... 13
10.2 N o L i t i g a ti on ........................................................................................................................... 13
10.3 N o M a t e r i a l C h a n g e i n A s s e t s t o be A cq u ir e d ......................................................................... 13
A R T ICLE 1 1 CON D I T I ONS T O OB L I G A T I ONS OF SELLER ........................................................... 13
11.1 R ep r e s en t a t i ons and W a rr a n t i e s ............................................................................................... 13
11.2 N o L i t i g a ti on ........................................................................................................................... 13
A R T ICLE 12 T ER M I N A T I ON ............................................................................................................... 13
12.1 T e r m i n a t i on ............................................................................................................................. 13
12.2 E f f e c t of T e r m i n a ti o n ............................................................................................................... 14
12.3 A pp li c a t i on o f I n it i al Pa y m en t , E x t e n si o n Pa y m ent and Se c ond P ay m ent ............................. 14
12.4 L i a b i l it y ................................................................................................................................... 14
A R T ICLE 13 AC T I ON T O BE T A K EN A T AND AF T ER CLOS I N G .................................................. 15
13.1 Se l l er D e li v e r ab l es a t Cl o s i ng ................................................................................................. 15
13.2 B u y er D e li v e r a b l e s a t C l o s i n g ................................................................................................. 16
13.3 Se l l er D e li v e r ab l es a f t er C l o si n g ............................................................................................. 16
13.4 B u y er D e li v e r a b l e s a f t er Cl o si ng ............................................................................................ 16
A R T ICLE 14 COS T S AND E X PENSES ................................................................................................ 17
A R T ICLE 15 P ROR A T I ONS .................................................................................................................. 17
A R T ICLE 16 BRO K ER OR F I NDER .................................................................................................... 17
A R T ICLE 17 S U R V I V AL ....................................................................................................................... 18
A R T ICLE 18 INS T RU M EN T S OF FU R T HER ASSURANCE ............................................................. 18
A R T ICLE 19 BUYER I NSPEC T I ON AN D BUYER I N DE M N I T Y AND AS I S W HERE I S
S A LE D I S C L O S U R E ....................................................................................................... 19
19.1 B u y er I n s p e c ti o n ...................................................................................................................... 19
19.2 B u y er I nd e m n it y ...................................................................................................................... 21
19.3 A S - I S W H E R E I S S A LE D I S C L O S UR E ............................................................................... 21
A R T ICLE 20 R I GH T S T O ASSIGN R I G H T S HEREUNDER .............................................................. 23
A R T ICLE 21 AS S I GN M EN T S AND NO RECOR D I N G ...................................................................... 23
A R T ICLE 22 GO V ERNING L A W ......................................................................................................... 23
A R T ICLE 23 E X ECU T I ON I N C O UN T ER P A R T S ............................................................................... 23
A R T ICLE 24 M I SCELL A NEOUS ......................................................................................................... 24
-ii- { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
24.1 En t i r e A g r ee m en t ..................................................................................................................... 24
24.2 W a i v e r s a n d A m end m en t s ....................................................................................................... 24
24.3 H ead i n g s and C ap t i o n s and T i m e i s of t he E ss e n ce ................................................................ 24
24.4 N o ti c e s ..................................................................................................................................... 24
24.5 C e rt a i n D e f i n i ti o n s .................................................................................................................. 25
24.6 R is k of Lo s s ............................................................................................................................. 25
24.7 Pub l i c D i s c l o s u r e ..................................................................................................................... 25
24.8 D is c l o s u r e o f C on f i d e n t i al I n f o r m a ti on................................................................................... 25
24.9 A c k no w l edg m en t ..................................................................................................................... 26
24.10 B u si n e s s D a ys .......................................................................................................................... 26
L I ST O F S CH E DU LES AN D EX H I B I TS
-iii- { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
AGREE M EN T O F P URC H A SE AN D S AL E
T H I S A G R EE M E N T O F P URCHA SE A N D S A LE (t h i s “ A g r e e m e n t ” ) i s m ade e f f e c t i v e t h e
13 t h d a y of A p r i l , 2016 ( t he “ E ff e c t i ve D a t e ” ) , by and a m ong I ND I G O G R O U P I NC . , a F l o ri d a co r p o r a ti on ( “ S e ll e r ” ) , a n d LAN D VENTUR E P A R TNER S, LLC , a L o u i s i ana l i m it ed l i a b i l it y
co m p a ny ( “ B u y er ” ) . F o r t he p u r po s es of t h i s A g r ee m en t , Se l l er and B u y er s h a l l ea c h be a “ P a r t y ” and
sha l l c o l l e c ti v ely be t he “ Pa rt i e s . ”
R E C I T A L S:
A. Se l ler d e s ir e s t o s ell t o B uy e r , and Bu y er d e s i r es t o pu r c h a s e f rom Se ll e r , on the te r m s and con d i t i o n s h e re i n af t er s et f o r th, t h e oi l , g as a n d m i n er al r i g h t s a ss e t s of Se l ler (as m o r e f ul l y d es c ri b ed i n S e c ti on 3.1 h e r eof ) , ex c ept t h e E x c l u d e d A ss ets ( as d e fi n ed i n Se c t ion 3.2 h ereof ) , ow n ed by Se l ler a nd l o cated i n t he S t ate of F l or i da i n B r e v a r d, C it ru s , DeS o t o, D i x i e, F l ag l e r , Hend r y , He r n a n d o, H i g h l and s , I nd i an R i v e r , La k e, Lee, Le v y , M an a t ee, O k eechob e e, O s ce o l a, P o l k , S t . L u c i e , Se m i nole, T a y l o r , a n d V o l u s i a Cou n t i e s ( c o l le c ti v e l y , t he “ A pp l i c ab l e C ou n ti e s ” ) .
NO W , T HEREFORE, f or a nd i n co n si d e r a t i on o f t he m u t u a l co v en a n t s and a g r e e m en t s co n t a i n e d h er e i n, a n d o t h er g ood a nd v a l u a ble con s i d e r a ti o n, t he r e c e i pt a nd s u f f ic i en cy of wh i ch i s h ereby ac k now l ed g ed, and i n t en d ing t o be le g a ll y bound h er e b y , Se ll e r and Bu y er a g r ee as f o l low s :
ART I CLE 1
S AL E AN D P URC H A SE O F T H E A SS ET S
Su b j e c t t o t he t e r m s and c o nd i t i o n s o f t h i s A g r ee m en t , Se l l e r co v en a n t s and a g r e e s t o s e l l , a ssi g n, tr a n s f er a nd d e li v er t o B uy e r , and B u y er co v en a n t s and a g r e e s t o pu r ch a s e a n d acc e pt fr om Se l l e r , t h e A ss e t s t o be A cq u ir e d ( a s d es c ri b ed i n A r t i c l e 3 h er e o f ) i n t he m ann e r a n d f or t he c on s i d e r a t i o n h er e i n a f t er s et f o r t h.
ART I CLE 2
CL O S I NG AND CL O S I N G D A TE
The co n s u m m a ti on o f t he t r an s f e r and d e li v e r y of t he A ss e t s t o be A cqu i r ed f r om Se l l er t o B u ye r and t he r e ce i pt of t h e con s i d e r a t i on t h e r e f o r by S e ll e r s h a l l co n s t it u t e t h e “ C l o s i ng .” The C l o s i ng s h a l l t a k e p l ace t h r ou g h t he Sa r a s o t a, F l o r i da o f f i ce o f A D A M S AN D REE SE LL P ( t he “ E s c r o w A g e n t ”) or t h r ou g h s u c h o t h er p e rs on or at s u ch o t h er p l a c e as B u y er and Se l l er s h a l l m u t u a ll y a g r ee. B u y er and Se l l er a c k no w l ed g e A d a m s and R ee s e LLP i s a l s o B uy e r ’ s coun s el f or t he p u r p o s es o f t h i s t r a n s a c t i on, and n o t h i ng co n t a i n e d h e r e i n s h a l l l i m i t A d a m s a n d R ee s e LLP f r om r ep r e s e n t i ng B u y er and a c ti ng a s E s c r ow A g en t . T h e C l o s i ng s h al l o c c ur on t he f i r s t t o o ccur o f : ( a) t h i r t y ( 30) d a y s f o l l o wi ng t he exp i r a t i on o f t he I n s p e c t i o n Pe ri od ( as d e f i n e d i n S ec ti on 19 . 1 ( a ) b e l o w ) , or ( b) D ece m b e r 9, 2016, ti m e b ei ng o f t he e s s en c e. T h e d at e f or C l o s i ng a s d e t e r m i n e d under t h i s A r t i c l e i s h e r e i n c a l l ed t h e “ C l o si n g D a t e .” The e f f e c t i v e d at e o f t he C l o s i ng of t h e s a l e o f t he A s s e t s t o b e A cq u ir e d s h a l l be a t 1 2 : 01 A . M . o n t he Cl o s i ng D a t e.
ART I CLE 3
TRANS F ER OF T H E A S SETS
3.1 A ss e t s t o B e A cq u i r ed.. S e l l er s h a ll , at t he C l o s i ng on t h e C l o si ng D a t e, by Sp e c i a l W a rr a n t y D eed ( as d e f i n e d i n Se c ti o n 13. 1 ( b) b e l o w ) , and A s s i g n m en t(s ) and A s s u m p ti on ( s ) of O il , G a s and M i n e r a l Le a s es ( as d e f i n e d i n S e c t i on 1 3.1 ( c) b e l o w ) and by o t h e r ap p r op r i a t e d o cu m en t s r ea s o n a b l y s a t is f a c t o r y t o B u y er and Se l l e r , t r an s f e r t o B u y er t he f o l l o wi ng p r op e r t i e s , i n t e r e s t s i n p r op e r t i es a nd a ss e t s o f S e l l er a s d e s c r i b e d i n t h i s Se c ti o n 3.1 ( c o ll e c ti v e l y , t he “ A ss e t s t o be A c q u i r ed ” ) :
{ 3 72 5 89 9 4 ; 2 7 } {A ke r ma n E xec u ti o n V e rsi o n - A p ril 13 , 2 0 1 6 }
( a) A l l of Se l l e r ’ s s e v e r ed o i l , g as a n d m i n e r al r i g h t s e s t a t e i n t e r e s t s ( i n c l u d i ng but not li m it e d t o a l l f u l l o r fr a c t i on a l m i n er a l e s t a t e i n t e r e sts , r o y a l t y i n t e r e s ts , en t r y and e xp l o r a ti o n r i g h t s o r si m il ar ri g h t s ) l o c a t ed i n t he A pp l i ca b l e C ou n t i es i n c l u d i ng but n o t l i m it ed t o t ho s e m o r e p a r t i c u l a rl y d es c ri b ed on ( and a c opy o f t he app l i c ab l e w a rr a n t y d eed i n t o S e l l er f o r e ach of t he A p p l i ca b l e C ou n ti e s li s t ed o n ) S ched u l e A - 1 t h r ough and i n c l u d i ng S c hedu l e A - 20 ( co l l e c t i v e l y t h e “ Mi n er a l E st a t e s , R oya lt y and O t her Mi n e r al I n t e r e s t s ” ) . I t i s t h e i n t e nt o f t he Pa r t i es t h a t B u y er w i l l a cq u ir e and S e l l e r w il l g r ant t o B u y er a l l of S e l l e r ’ s M i n e r a l E s t a t e s , R oy a lt y and Ot h e r M i n e r al I n t e r e s t s i n t he A pp l i c a b l e C oun t i es w h e t h e r o r n o t l i s t ed o r p r op e rl y d es c r i b e d i n t h e s e s c h e d u l e s . T h e M i n e r al E s t a t e s , R o y a lt y a n d O t h e r M i n e r al I n t e r e s t s co nv e y ed s h al l b e s u b j e c t t o, a nd B u y er s h a l l be o b li g a t ed t o ho n o r :
(i) the 1/ 3 2 o il, g as a n d o t h er m ine r a l s r o y alt y , and t he s u lph u r ro y alty obli g a t io n s u n der t hat c e r t a in g ra n t i ng in s tru m ent in f av or of G . BU R T O N L I ES E , an in d i v idu a l, et al., d at e d D ece m ber 29, 1953, w ith r es p ect to the Min e r a l Es t at e s, R o y alty and O ther M in e r a l I nterests loc a ted in H en d r y , H i g hlands, Le e , O k eechobee, O s c eo l a, and S t. Lucie C ou n t i es, Flo r ida, a copy of w h ich is at t ach e d h e re t o as S ched u l e A - 21 (t h e “ Li e s e R o ya l t y ” ) 1 ; and
( i i) the 1/32 o i l, g as and ot h er m ine r als ro y a l t y , and t he s u lph u r ro y alty obli g a t io n s und e r th a t c e r ta i n g rant i ng inst r u m ent in fa v or of L I B E R T Y O I L & RO Y A L T Y CO M P AN Y , a D e la w a re c orpo r a t ion, d a ted D ece m ber 2 9, 1 953, w i t h res p ect to t h e Mi n e r a l Est a tes, R o y a l ty and O th e r Mi n er a l I ntere s ts l o c a ted in H endr y , H i g hlands, L e e, O k eechobee, O sceo l a, and S t. Lu c ie C o unt i es, F lo r ida, a copy of w hich i s a tt a ched h e r eto a s Schedu l e A - 22 (the “ L i be r t y O i l R oy a lt y , ” 2 a n d to g eth e r w ith t he L i e se R o y a l t y , c o ll e c t i v ely r e f er r ed to he r e i n as t h e “ E x is t i ng R o y a l t y A g r ee m en t s ”).
(b) Sel l e r ’ s ri g ht, t i t le and in t ere s t in and to a l l o i l, g as and m ineral ri g h t s le a se s , poo l ing ri g hts, d i v isi o n o r ders and o t her a g ree m en t s und e r w hich or r e l at e d to w hi c h Se l le r , or its pred e ce s sor in t i t le CON S O L I D A T E D - T O M O K A L AN D CO ., a Flo r ida c o r p ora t ion (“ C o n s o l i d a t ed- T o m ok a ”), l e ases or l i ce n ses to t h i rd p a r t ies a l l o r a po r ti o n of S e l le r ’ s Mi ne ral E s t at e s, R o y alty and O ther M in e r a l I nter e s t s in t he A ppl i ca b le C o un t i e s in c l uding b u t n o t l i m ited to t ho se m ore f u lly d e sc r ib e d as S chedu l e B - 1 , Sc h edu l e B - 2 , a n d S chedu l e B - 3 a t t a ched h e r e to (c o l l ec t i v ely t h e “ O il , G as and Mi n e ral L ea s e s ” ) .
(c) I n the e v ent B u y er e s t a bl i shes t o S e l l e r ’ s re a s o nable s a t is f a c tion th a t a C onso l id a ted - T o m o k a (or i ts pre d ec e ss o r by m e r g er) ho l ds t i t l e to se v er e d o il, g as and m iner a l ri g h t s est a te in t er e s t s ( in c lud i ng but not li m it e d to a ll fu l l or fr a c t ion a l m iner a l e s t a te i n t ere s ts, ro y alty i n te r e s ts, entry a nd e xp l or a t i on ri g hts or si m il a r ri g h t s) lo c a t ed i n t h e A p p l i ca b le C o un t ies b ut th a t s uch i n t e re s t w a s not con v e y ed to S e l ler by the W a rr a nty D eeds l i st e d o n Schedu l es A - 1 t h r ough A - 20 , S e ll e r wi ll u se i t s best g ood fa i th e f f o rts p r ior to C l o sing to o bt a in a co nv e y ance of the sa m e from C onso l id a ted - T o m o k a to Sel l e r . S e l ler sh a ll then co nv ey the sa m e to B u y er con s is t ent w ith the form of do c u m entati o n c a l l ed f o r i n th i s A g ree m ent wi th r e spe c t t o s uch si m il a r S e l ler a ss ets to be con v e y ed h e re i n, it be i ng the i n te n t o f t h e
1 T h e L i ese R o y al t y is r ec o r d ed at M i s cella n e ou s B o o k 35 , P a g e 10 8 o f t h e P u b lic R ec o r d s o f L ee Coun t y , F l o r i d a, a n d O f f icial R ec o r d s Boo k 3 , Pa g e 9 4 o f t h e P ub lic R ec o r d s o f He n d r y Coun t y , F l o r i d a. R ec o r d i n g i n f o rm ati o n is n o t c u rr e n t l y a v aila b le f o r Hi g h la nd s , O k eec hob ee, O s ce o la, a n d S t. L u cie Coun tie s . I f Bu y e r d esi r es su c h r ec o r d i n g i n f o rm ati on , it sh all b e Bu y e r ’ s r es po n s i b ility to ob ta i n t h e s a m e at B u y e r ’ s so le c os t a n d e x p e n s e a nd , i f ob tai n e d , to p r o v i d e c op ies o f t h e s a m e to Selle r .
2 T h e L i b e r t y Oil R o y al t y is r e c o r d ed at M i s cella n e o u s B o o k 3 5 , Pa g e 12 5 o f t h e P ub lic R ec or d s o f L ee Coun t y , F l o r i d a, a n d O f f icial R ec o r d s B oo k 3 , Pa g e 7 7 o f t h e P ub lic R ec o rd s o f H e nd r y Coun t y , F l o r i d a. R ec o r d i n g i n f o rm ati o n is n o t c u rr e n t l y a v aila b le f o r Hi g h la nds , O k eec hob ee, O s ce o la, a n d S t. L u cie Coun tie s . I f Bu y er d esi r es su ch r ec o r d i n g i n f o rm ati on , it s h all b e Bu y e r ’ s r es pons i b ili t y to ob tain t h e s a m e at B u y e r ’ s so le c os t a n d e x p e ns e a nd , if ob tai n e d , to p r o v i d e c op ies o f t h e s a m e to S elle r .
2 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
Pa r t i es t h a t S e ll e r con v ey t o B u y er a l l s u c h s e v e r e d m i n er al i n t e r e s t s h e l d by S e l l er and C on s o li d a t ed- T o m o k a ( or i t s p r ed e c e ss o r by m e r g e r) .
3.2 Ex cl u d ed A s s e t s .. N o t wi t h st an d i ng t h e f o r e g o i ng and ex c e pt f or t h e a p p l i ca b l e s e v e r ed m i n er al i n t e r e s t s s e t f o r t h i n 3.1 ( c) abo v e and i n A r ti c l e 1 8 h e r e i n, t h e r e a r e ex c l ud e d f r om t he A ss e t s t o be A cqu i r ed h e r eu n d e r a l l r e a l p r o p e r t y or p ers o n al t an g i b l e p r op e rt y or i n t an g i b l e p e rs o n al p r op e rt y of Se l l er or i t s a f f i li a t e s n o t s p e c i f i ca l l y d e s c r i b e d i n S e c t i on 3 . 1 o r i n t he Sc h edu l es r e f e r e n c ed i n S e c t i o n
3.1, i n c l u d i ng but not l i m it ed t o a l l m i n er a l and s u b s u r f ace r i g h t s a n d i n t e r e s t s not s e v e r e d f r om t he s u r f ace e s t a t e o w n e d by Se l l er ( c o l l e c ti v e l y , t he “ E x c l u ded A ss e ts ” ) .
ART I CLE 4
P A Y M EN T F O R T H E A S S ET S AN D A SS U M P T I O N O F CE R T A I N L I AB I L I T I E S
4.1 Pu r ch a s e P r i ce . B u y er s h a l l , a t t he C l o si ng on t he C l o si ng D a t e, acq u i r e a nd ac cept t h e A ss e t s t o be A cq u i r ed f r o m Se ll er a n d s h a l l p a y t o Se l l er t he a m ount of T W E N T Y F OU R M I L L I O N AN D NO / 100 DO LL AR S ( $24, 0 00,000 . 00) f o r t h e A ss e t s t o be A cqu i r ed, s ub j e c t t o a d j u s t m en t s and p r o r a t i ons as p r o v i d e d h e r e i n ( t he “ P u r cha s e P r i c e ” ) .
4.2 Pay m ent of t he P u r c h a s e P r i ce . T he Pu r c h a s e P r i ce s h a l l b e p a i d i n t h e f o l l o w i ng m ann er :
(a) W it h in t h r e e (3) B u s in e ss D a y s of the E f fe c t i v e D ate of th i s A g ree m ent, F I F T Y T HOU S AN D AN D NO / 1 00 DO LL AR S ($50,000. 0 0) ( w h ich is h e r e in a ft e r r e fe r red to as the “ I n i t i a l P a y m e n t ” ) s h a l l b e d e po s i ted by B u y er w ith Es c row A g ent pur s ua n t t o the t e r m s of t h at c e rt a in Es c row A g ree m ent dated of e v en da t e h e re wi th s ub s ta n ti a ll y in the f o rm atta c hed as E x h i b i t 1 h e r eto ( t he “ E s c r o w A g r e e m e n t ” ) ( an d w hich E sc r ow A g ent sh a l l pro m ptly co n f i rm rece i pt t here o f to S e ll e r).
(b) O n or b e fo r e t h e ex p i r a t ion of t h e I niti a l I nspec t ion P e riod (as de f in e d in S e c ti o n
19.1 ( a ) h e r e i n ) , p r o v i d e d B u y er h a s g i v en t he Ex t e n si on o f I n s p e c ti o n Pe r i o d N o ti c e ( as d e f i n e d i n
Sec t i on 19.1 ( a) h e r e i n ) , F I F T Y T HOU S AN D AN D NO / 100 DO LL AR S ( $50,000.0 0 ) ( w h i ch i s h er e i n a f t er r e f e rr e d t o as t he “ E x t en s i on P a y m en t ”) s h a l l be d e po s it e d by B uy er w it h E s c r ow A g ent
pu rs u ant t o t he E s c r ow A g r ee m en t . Su b j e ct t o t he p r ov isi ons o f Ar t i c l e 12, t he E x t en s i on Pa y m ent s h a l l
be non - r e f unda b l e t o B u y er and d e e m ed f u l l y ea r n e d by Se ll e r . T he Ex t en s i on P ay m ent s h a l l be t r e a t ed, app l i ed and d is b u rs e d as p r o v i d e d i n S e c ti on 12.3 o r S ec t i on 13 . 2 ( c ) , a s ap p l i ca b l e.
(c) Pro v ided t he E x ten s ion o f I nspec t ion P e ri o d N o t ice has n o t been pro v id e d by B u y er to Se l le r , t hen not l a t er than one ( 1) B us i ne s s D ay af t er the e x p i ra t ion of t h e I nspec t ion P e r iod, and in a ll e v en t s wi th i n o n e ( 1) B usin e ss D ay o f B u y er g i v i ng or b e ing dee m ed to ha v e g i v en the G o F o r w a r d N oti c e des c r i bed in S e c t i o n 19.1( d ), ON E HUNDR E D F I F T Y T HOU S AN D A N D NO /100 DO LL AR S ($150, 0 00.0 0 ) ( w hi c h is h e rei n a f t e r re f e r red to a s the “ Second P a y m e n t ”) s h a l l be depo s i t ed by B u y er w ith E sc r ow A g ent p urs ua nt to the E s c row A g ree m ent ( and w h ich Es c row A g ent sh a ll pro m ptly co n f i rm rec e i p t th e re o f to S e l le r ). I f B u y er h a s p ro v ided S e ll e r the E x ten s ion of I nspec t i o n Pe r iod N o t ice, wi th i n one ( 1) B u si n ess D ay of t h e ex p i r a t ion o f the Ex t en s i o n I nspecti o n P e ri o d, B u y er m a y proceed to C l o sing by B u y er g i v ing or be i ng dee m ed to ha v e g i v en t h e G o For w a rd N o t i ce and B u y er pa y ing the S e co n d Pay m ent to t he E s crow A g ent (and w h ich E scrow A ge nt s h a l l pro m ptly co n f i rm rece i pt th e re o f to S e l l e r). T he I niti a l P ay m ent, t he Second P a y m ent, and a ny Ext e ns i on Pa y m ent sh a ll be tr e a t ed, app l ied a n d disb u rs e d as pro v id e d f o r i n Sec t ion 1 2.3 or Se c ti o n 13 . 2(c), as app l i c ab l e.
(d) T he b a l ance o f t h e Pur c h a se Pr i ce s h a l l be p a id by B u y er to Esc r ow A g ent f o r Sel l er i n cash by a fed e r a l funds wi re t ra n sf e r on t h e C los i ng D ate purs u ant to a j o i n t es c row in s t r uc t i o n le t t e r si g ned by Se l ler and B u y er (“ Jo i n t E s c r o w I n st ru c t i on L e t t e r ”). N O T W I T H S T AND I N G A N Y RE F ERENC E T O B U YE R F I NANC I N G O R B U Y E R ’ S LENDE R C O N T A I NE D I N T HI S
3 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
AGREE M EN T , I F A N Y , B U Y E R ’ S O B L I G A T I ON S P UR S UAN T T O T H I S AGREE M EN T AR E N O T C O NT I NGEN T U P O N B U Y ER ’ S A B I L I T Y T O O B T A I N F UND S T O F I NANC E AL L O R AN Y P O R T IO N O F T H E C O NTE M P L A TE D TR A N S ACT IO N .
4.3 L i a b i l i t i es and A g r ee m en t s of S e ll e r .
(a) B u y er sha l l a s su m e, by instru m ent of as s u m ption, and disc h a r g e as t hey beco m e due, a ll o b li g a t io n s ac c r u i ng from and subseq u ent to the C l o sing D a t e und e r t h e O il, G a s and Mi n er a l Leas e s. T he a g ree m ents o r ob l i g atio n s d es c ri b ed in t his S ec t ion 4.3 ( a) sh a ll s o m eti m es be he r ei n a f ter re f e r red to c o l l e c ti v ely as t he “ A ss u m ed A g r e e m en t s . ”
(b) B u y er sha l l n o t a s su m e or beco m e lia b le or o th e r w i s e obli g a t ed f or an y t h ing th a t is not an A ssu m ed A g ree m ent, i nc l udin g , w it h out li m ita t ion, a ny indeb t edn e ss, li ab i l i ti e s or o b li g a t ions o f Sel l er w h at s oe v er a r i sing out o f, or a t t r ib u ta b le to t h e cond u ct of S e l le r ’ s o p er a tio n s and bu s in e ss wi th res p ect to the A ss e ts to be A cqui r ed p ri o r t o t h e C l o s i ng D ate.
(c) N othing in th i s A g ree m ent sh a ll b e co n s t rued to l i m it or re s t r i c t any ri g ht o f B u y er to m a k e a claim or de m and a g ainst a ny Less e e th a t any O il, G a s or Mi n er a l Le a se h a s not b e e n m aintai n ed in f or c e and e f fe c t i n clu d ing but not l i m ited to due to ac t i v i t ies or l a ck of oper a ti o ns o r produ c t i on w h e th e r b e fo r e or a f t e r t he Cl os i ng D ate.
ART I CLE 5
RE P RESEN TA T IO NS AND W ARRANT I ES O F S ELLER
Se l l er r e p r e s en t s and w a r r a n t s t o B u y er t h a t :
5.1 C o r po r a t e S t an d i n g , Po w er and A u t ho r it y . Se l l e r i s a co r p o r a ti on du l y o r g an i z e d , v a li d l y ex i s t i ng and i n g ood st and i ng under t he l a w s o f t he S t a t e of F l o ri d a and h a s a l l t he r e qu i s i t e po w e r and au t h o r i t y t o o w n l ea s e and op er a t e t he A ss e t s t o be A c qu i r ed, t o c a r r y on it s bu s i n es s as now c o ndu c t ed, and h a s t he r eq u i s i t e po w e r t o en t er i n t o t h i s A g r ee m ent a n d t o p e rf o r m t he t e r m s of t h i s A g r ee m ent and con s u mm a t e t he t r a n s a c ti on s co n t e m p l a t e d h e r eb y .
5.2 A u t ho r i z a t i on of A g r ee m en t ; N o B r e ach. S e l l er h a s t ak en a l l n e c e s s a r y and p r o p er a c t i o n t o r a t if y , au t h o r i z e and a p p r o v e t h i s A g r ee m en t , t he con s u mm a ti on of t he tr a n s a c ti o n s c o n t e m p l a t e d h er eby and t he p e r f o r m an c e by Se ll e r of a l l t h e t e r m s and con d i t i o n s h e r eof on i t s p a r t t o be p e r f o r m ed. T he ex e c u t i on a n d d e l i v e r y of t h i s A g r ee m ent by Se l l er d o es n o t , and t he con s u m m a ti on o f t h e tr a n s a c t i ons co n t e m p l a t ed h er eby w i l l not r e s u l t i n a ny b r each or v i o l a t i on of or d e f au l t und e r : ( i ) t he t e r m s , con d i t i ons o r p r o v is i ons of S e l l e r ’ s Ar t i c l e s of I n c o r p o r a ti o n, B y l a w s or an y st and i ng r e s o l u t i on or con s e n t of i t s b o a r d o f d i r e c t o r s o r s h a r eh o l d e rs , and ( i i ) any of t h e Oi l , G a s a n d M i n e r al Le a s es or t he A ss u m ed A g r ee m en ts .
5.3 B i nd i ng O b l i g a t i on s . T h i s A g r ee m ent h a s b een d u l y ex e cu t ed and d e l i v e r ed by Se l l er a n d con s ti t u t e s , and t he o t h er i n st r u m en t s t o be e x ec u t ed and d e l i v e r ed by Se ll e r pu r s u a nt t o t h i s A g r ee m ent w il l c o n s t i t u t e, l e g a l , v a l i d and b i n d i ng ob li g a t i ons of Se l l er e n f o r cea b l e i n acco r d an c e wi t h t h e i r r e s p ec t i v e t e r m s .
5.4 C o m p li an c e wi t h La w s . T o Se ll e r ’ s k no w l ed g e, w it ho ut i n d ep e n d ent i n v e s t i g a ti o n, Se l l er i s i n co m p l i an c e, i n a l l m a t e ri a l r e s p e c ts , wi t h a l l f ed e r a l , s t a t e or l o c a l l a w s , r u l e s and r e g u l a t i o n s i n c l ud i ng but not l i m it ed t o En v ir on m en t al La w s ( as d ef i n e d i n Se c ti o n 19.3 ( b ) ) r e l a t i ng t o t he A s s e t s t o be A cqu i r ed a nd t h e op e r a t i on of t he A s s e t s t o be A cqu i r ed t h e f a i l u r e w it h w h i ch t o co m p l y cou l d r ea s on a b l y be exp e c t ed t o h a v e a m a t e r i al ad v e r s e e f f ect on t h e f i n a n c i a l con d i ti on or op e r a t i ons o f t he A ss e t s t o b e A cq u i r ed ( “ A p p li c ab l e L a w s ” ) . F o r t he p u r po s e o f c l a r i t y , m a t e ri a l a d v e rs e e f f e ct s h a l l m ean
4 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
a l l p r o v i s i ons o f t h i s A g r e e m ent t a k en t o g e t h e r s h a l l n ot c o ll e c t i v e l y h a v e an ad v e rs e e f f ect i n e x ce s s o f F I V E HUNDR ED T HOU S AN D AN D NO / 100 DO LL AR S ( $500,0 0 0.0 0 ) ( “ M a t er i a l A dv e r s e E ff e c t ” ) . A s of t he E f f e c ti v e D a t e of t h i s A g r ee m en t , Se l l er h a s not r e c e i v ed w ri t t en n o t i f i c a t i on of any v i o l a t i on o f l a w s r e l a ti ng t o t h e A ss e t s t o be A cq u ir e d or t h e op er a ti o n of t h e A ss e t s t o be A cqu i r ed e x ce p t f o r v i o l a t i ons t h at h a v e b e en r e m ed i ed or v i o l a t i o n s t h at c ou l d n ot b e r ea s on a b l y ex p ec t e d t o h a v e a M a t e r i a l A d v e rs e E f f e c t on t he f i n a n ci a l con d i t i on or op e r a t i o ns o f S e l l er r e l a ti ng t o t he A ss e t s t o b e A c q u i r ed or on t he A ss e t s t o be A cq u ir e d i f n ot r e m ed i ed.
5.5 L i t i g a ti o n . Ex c e p t as s et f o rt h on Sc h edu l e C , a t t ac he d h er e t o and m ade p a r t h e r eo f , t o t he k no w l ed g e of Se l l e r , t h er e a r e no a c t i ons a t l aw or i n eq u it y , or a r b i t r a ti on p r o c e ed i n g s , or i n v e s t i g a ti o n s , p e n d i ng o r , t o t he k no w l ed g e of Se ll e r , t h r ea t en e d i n w r i ti n g , w h i ch h a v e a M a t e r i a l A d v e rs e E f f ec t .
5.6 Ex i s ti ng R o y a lt y A g r ee m e n ts . S chedu l e A - 21 i n c l u d es a tr u e and co r r e ct c opy of t h e L i e s e R o y a lt y , a n d Sc h edu l e A - 22 i n c l u d e s a tr u e a nd co r r e c t c o py of t he L i b e rt y O i l R o y a l t y . T o S e l l e r ’ s k no w l ed g e, t h e r e a r e no o t h e r r o y a lt y i n t e r e s t s g r an t e d a f f e c t i ng or r edu c i ng t he Mi n e r a l E s t a t e s , R o y a l t y or O t h er Mi n e r a l I n t e r e st s o t h e r t h an d i s c l o s e d on Sc h e du l e A - 2 1 and S ched u l e A- 22 .
5.7 O F AC . T o t h e e x t e n t a p p l i ca b l e, S e l l er i s i n co m p l i an c e w it h t he r e q u i r e m en t s of Ex e cu t i v e O r d er N o . 13 2 24, 66 Fed. R e g . 49079 ( Sep t . 25, 2 001) ( t he “ O r der ” ) , a n d o t h e r s i m il a r r eq u ir e m en t s c on t a i n ed i n t he r u l es and r e g u l a t i ons o f t he O f fi c e of Fo r e i g n A ss e t s C on t r o l , D ep a r t m ent of t h e T r e a s u r y ( “ O F AC ”) and i n a ny en a b l i ng l e g i s l a t i on o r o t h e r E x ec u ti v e O r d e r s or r e g u l a t i o n s i n r e s p ect t h e r e o f ( t he O r d er a nd s u c h o t h e r r u l e s , r e g u l a t i on s , l e g i s l a t i on or o r d e r s a r e co l l e c ti v e l y c a ll e d t h e “ O r d er s ” ) . N e i t h e r Se l l e r , nor any of i t s m e m b ers : ( a ) i s li s t ed on t he S p ec i a l l y D e si g n a t ed N a ti o n a l s and B l o c k ed Pe rs o n L i s t m a i n t a i n e d by O F A C pu rs u a nt t o t he O r d e r an d / or on any o t h e r l i s t o f t e r r o ri s t s o r t e r r o r i s t o r g an i z a t i ons m a i n t a i n e d pu r s u a n t t o any of t h e r u l e s and r e g u l a t i ons of O F A C or p u r s u a n t t o any o t h e r ap p li c ab l e O r d e r s ( s u ch l i st s a r e c o l l e c ti v e l y r e f e rr ed t o as t he “ Li s t s ” ) ; ( b ) i s a p er s on ( a s d e f i n e d i n t he O r d e r ) w ho h a s b e en d e t e r m i n e d by co m p et ent au t ho r i t y t o be s u b j e ct t o t he p r oh i b i ti o n s co n t a i n e d i n t he O r d e r s ; o r ( c ) i s o w n e d or co n tr o l l ed by (i n c l u d i ng by v irt ue of s u ch p e rs on b e i ng a d ir e c t or or o w n i ng v o ti ng s h ar es o r i n t e r e s ts) , or ac t s f o r or on b e h a l f o f , any p ers on on t h e L i s t s or a ny o t h e r p e r s on w ho h a d b e en d e t e r m i n e d by co m p et ent a u t h o r i t y t o be s u b j e c t t o t he p r o h i b i t i ons con t a i ne d i n t he Or d e r s .
5.8 O il , G a s and M i n e r al Le a s e s . A t r u e , c o r r e c t a n d c o m p l e t e c o py of t h e Oi l , G as a n d Mi n e r a l Lea s es and a l l a m end m en t s t h e r e t o and a s si g n m en t s t h e r eo f , a s t h e y ex i s t i n S e l l e r ’ s c o r p o r a t e r ec o r d s , s h a l l be d e li v e r e d t o B u y er upon ex e c u t i on of t h i s A g r ee m en t . T h e Oi l , G as and M i n e r a l L e a s e s a r e i n f u l l f o r ce a n d e f f e c t . Se ll e r d i s c l o s e s t o B u y er and B u y er ac k no w l ed g es t h a t t h e M i n e r al E s t a t e s , R o y a lt y and O t h e r Mi n e r a l I n t e r e s t s a r e i nh e r e n tl y s ub j e c t t o d is p u t e s and c l a i m s fr om t h i r d p a r t i es f r om ti m e t o ti m e as t o t h e n a t u r e, q u a l it y , v a l i d i t y or s up e ri o r i t y of t he t i t l e o f t he h o l d e r o f s i m il ar m i n er a l e st a t e s , r o y a lt y and o t h e r m i n er al i n t e r e s t s s u c h as S e l l e r ’ s i n t e r e st s i n t h e Mi n e r a l E s t a t e s , R o y a lt y a n d O t h e r M i n e r a l I n t e r e s ts , a n d Se l l er m a k es no a ss u r a n ce t o B u y er t h a t t h e M i n e r al E s t a t e s , R o y a lt y a n d O t h e r Mi n e r a l I n t e r e s t s wil l not b e s u b j e c t t o a ny s u c h d is p u t e s and c l a i m s fr om ti m e t o ti m e. Se l l er ha s not s e nt a n o t i ce o f d e f a u l t t o any p er s on or e n t it y a r is i ng under t he O il , G a s and Mi n e r a l Le a s es t h a t h a s not b een c u r ed or w a i v ed ex c e pt as s e t f o r t h i n S c hedu l e C . T o S e l l e r ’ s kn o w l ed g e, S e l l er h a s n o t r ec e i v ed a n o ti c e o f d e f a u l t o r an ad v e r s e c l a i m of a n y k i nd or n a t u r e f r om any p ers o n o r e n t it y a r i s i ng under o r p e r t a i n i ng t o t h e O il , G as and M i n e r a l Le as es t h at h as n o t b e e n c u r ed or w a i v ed, e x ce p t as s et f o r t h on Sched u l e C . T h e O il , G as a n d M i n e r al L e a s e s a r e i n f u l l f o r c e and e f f e c t . T o S e l l e r ’ s k no w l e d g e, t h e r e a r e no s u s p e nd e d f u nds h e l d f o r t he acc o unt of S e l l er or any o t h er p e r s on c l a i m i ng an i n t e r e s t con t r a r y t o S e ll e r f or r e n t a l s , r o y a l t i e s , s hu t - i n r o y a l t i e s , o v e r r i d i ng r o y a l t i e s , co m p e n s a t o r y r o y a lt i es and o t h e r p a y m en t s w it h r e s p e c t t o t he A ss e t s t o be A cq u i r ed.
5 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
5.9 T i t l e . S e ll e r i s t h e o w n e r of t he M i n e r al E s t a t e s , R oy a lt y and O t h e r M i n e r a l I n t e r e s ts , p r o v i d e d S e l l e r , o t h e r t h an it s s p ec i al w a r r a n t y of t i tl e and t he r e p r e s en t a t i ons and w a r r an t i e s s p e c i f i c a ll y s et f o rt h i n t h i s A g r e e m en t , m a k es no o t h er w a r r a n t y as t o t he s p e c i f i c n a t u r e or q u a l it y o f S e l l e r ’ s i n t e r e st s i n t he M i n e r al E s t a t e s , R o y a l t y and O t h e r Mi n e r a l I n t e r e s ts , and S e ll er d is c l o s es t o B u y er and B u y er ac k no w l ed g es t h a t t he M i n e r a l E s t a t e s , R o y a l t y and O t h e r Mi n e r a l I n t e r e st s a r e i nh e r e n tl y s u b j e c t t o d i s p u t es and c l a i m s fr om t h i r d p a r t i e s f r om ti m e t o t i m e as t o t he n a t u r e, q u a l it y , v a li d i t y or s u p e r i o r it y of t h e t it l e of t he h o l d e r o f si m il a r m i n er a l e s t a t e s , r o y a lt y and o t h e r m i n er a l i n t e r e s t s s u ch as S e l l e r ’ s i n t e r e st s i n t h e M i n e r al E s t a t e s , R o y a lt y and O t h e r Mi n e r a l I n t e r e s ts , and S e ll er m a k es no a ss u r an c e t o B u y er t h a t t he M i n e r a l E s t a t e s , R o y a lt y and O t h e r Mi n e r a l I n t e r e s t s wi l l n o t be s u b j e c t t o any s u c h d is p u t e s and c l a i m s fr om ti m e t o ti m e. Su b j e ct t o t h e f o r e g o i ng l i m it a t i ons ( and t he l i m it a ti o n s t h e r e on p r o v i d e d abo v e) a nd s ub j ec t t o t h e P e r m itt ed Ex c e p t i o ns ( a s d e f i n e d i n S ec t i on 1 9.1 ( c ) b e l o w ) , t h e A s s e t s t o be A cqu i r e d , a r e f r ee an d c l e a r of a l l l i e n s , o t h e r t h an Pe r m it t ed L i e n s . For pu r po s es o f t h i s A g r ee m en t , “ Pe r m i tt ed L i e n s ” m ean s : ( a) s t a t u t o r y li e n s f or t ax e s not y et due a nd p a y a b l e; a nd ( b ) l i e n s t h at w i l l b e p ai d o f f and r e l e a s ed i n f u l l p r i or t o or at C l o si n g , ho w e v e r , t o S e ll e r ’ s k no w l ed g e t h e A s s e t s t o b e con v e y ed a r e n o t s u b j ect t o any li e ns i n t h i s s u b s e c t i on ( b ) . For a v o i d a n ce o f d oub t , s ho u l d any l i e n s b e f ound t o e x is t un d er s ub p a r a g r aph ( b ) , s u c h l i e n s s h a l l be p a i d o f f an d / or r e l e a s ed s o a s n o t t o con s t i t u t e a li e n on t i t l e of t h e A s s e t s t o b e A cq u i r ed as of t he C l o s i ng D a t e. T h e r e a r e n o ou t s t and i ng op t i ons or co m m it m en t s t o w h i ch S e ll er i s a p a rt y w h i c h r e l a t e t o t he s a l e by S e l l er o f t he A ss e t s t o b e A cq u i r ed by B u y e r . T h e A s s e t s t o be A c qu i r ed c on s t i t u t e a l l a s s e t s o w n e d, l ea s ed, o r con t r o ll e d by Se l l er and any of i t s a f f il i a t e s , l o c a t ed a t or u s ed i n c o nn e c t i on w it h, a n d m a t e r i al t o, t he o p e r a ti on of t h e A s s e t s t o be A cqu i r ed.
5.10 P r e f e r e n t i al R i g h ts . T h e s a l e of t he A s s e t s t o be A c qu i r ed i s n o t s ub j e ct t o any op ti on o r ri g ht o f f ir s t r e f u s a l , i n f a vo r of a t h i r d p e rs on o r any a f f i li a t e o f S e l l e r .
5.11 N o b a n k r up t cy or i n s o l v en c y . Se l l er h a s not f i l e d f or b a n k r up t c y , r e o r g an i z a t i on, r ec e i v e rs h i p, p r o t e c ti on o r a r r an g e m ent p r o c e ed i n g s p end i ng a g a i n s t S e ll e r . S e l l e r i s n o t e n t e ri ng i n t o t h i s A g r ee m ent w it h t he i n t ent t o h i n d e r , d e l ay or d e f r aud c r ed i t o rs .
5.12 J u d g m en t s and P r o c ee d i n g s . T o Se l l e r ’ s k no w l ed g e, t h er e a r e n o ou t st a nd i ng j u dg m en t s a g a i n s t S e l l e r , or a g a i n s t or a f f e c t i ng any of t he A ss e t s t o be A cqu i r ed, e x ce p t f o r c e r t a i n q u i e t t i t l e a c t i ons f i l ed a g a i n s t C o n s o l i d a t e d - T o m o k a f or w h i ch Se l l e r wi l l p r o v i d e t o B u y er cop i e s o f a ny r e l e v a n t co r r e s p o nd e n c e and p l ea d i n g s , i f an y , t h a t i s i n S e l l e r ’ s po s s e s s i on wi t h i n t en ( 1 0) B u si n e s s D a y s o f t he E f f e c ti v e D a t e. T o t h e e x t e nt t h a t any ou t st a nd i ng j ud g m en t s ex i st , t he s a m e s h a l l be p a i d o f f i n f u l l f r om t he p r o c e e ds p a i d at C l o s i ng . Se ll er m ay bond o v er s u c h j ud g m en ts , s u b j ect t o B u y e r ’ s con s ent a s t o t he t e r m s and co n d i ti o ns t h e r e o f , s u c h co n s e n t n o t t o be un r e a s on a b l y wi t hh e l d, c o nd i t i o n ed o r d en i ed. N o conde m n at i on, e m i n e nt d o m a i n or si m il a r p r o c ee d i n g s a r e p e n d i ng o r , t o S e l l e r ’ s k no w l ed g e, t h r ea t en e d i n wr i t i ng wi t h r e g a r d t o t h e M i n e r a l E s t a t e s , R o y a l t y and Ot h e r M i n e r a l I n t e r e s t s . Se l l e r h as not r ec e i v ed any no t i ce o f any p e nd i ng or t h r e a t en e d g o v e r n m en t al l i en s , s p e c i al a s s e ss m en ts , i m po sit i ons or i n c r e a s e s i n a s s e s s ed v a l u a t i ons t o b e m ade a g a i n s t t he A s s e t s t o be A cq u ir e d.
5.13 L i ce n s es and P e r m its . T o Se l l e r ’ s k no wl ed g e, wi t h o ut i nd e p end e nt i n v e s ti g a t i o n, t h e r e a r e no l i c e n s e s and p er m it s i n t he n a m e of Se ll e r r equ i r ed f or t h e op e r a t i o n of Se l l e r ’ s bu s i n e s s con c e r n i ng t he A ss e t s t o b e A cqu i r ed a lt h o u g h Se ll e r b el i e v es t h a t l i ce n s es a n d p er m it s m ay h a v e b e en ob t a i n e d or b e r e qu i r ed t o be ob t a i n ed by t e n an t s or o t h e r s p e r t a i n i ng t o t he o p er a ti o ns o f t h o s e t h ir d p ar t i e s .
5.14 C on s e n ts . T o S e l l e r ’ s k n o w l ed g e, w it h out i n v e s t i g a t i on, t h e r e a r e no co n s e n t s r equ i r ed f or S e l l er t o s e l l t he A s s e t s t o be A c qu i r ed p u r s u a n t t o t he t e r m s of t h i s A g r ee m en t .
6 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
5.15 Se l l e r ’ s O p e r a ti o n s . S e l l e r i s n ot p a r t i c i p a t i ng as an o p er a ti ng o r n o n - op er a t i ng w o r k i ng i n t e r e s t o w n er i n any w e l l s or u n it s w i t h r e s p e ct t o t he A ss e t s t o be A cq u i r ed.
5.16 T ax e s . S e l l er h a s p a i d a l l t a x e s t he f a i l u r e of w h i ch w o u l d r e s u l t i n a l i en on t he A ss e t s t o be A cq u ir e d .
5.17 En v ir on m en t al M a tt e rs . T o Se l l e r ’ s k no w l e d g e, wi t ho u t i n d e p e n d e n t i n v e s ti ga ti on, t h e r e i s no d e t e r m i n a t i on by a g o v e r n m en t al e n t it y p e r t a i n i ng t o t he A s s e t s t o be A cqu i r ed m ade k no w n i n w ri t i ng t o S e l l e r of a p r e s ent v i o l a ti o n o f En v ir o n m en t al La w s , and t o S e ll e r ’ s k no wl ed g e, w i t ho u t i nd e p end e n t i n v e s t i g a ti o n , t h e r e i s no i n v e s t i g a ti o n b y a g o v e r n m en t al e n t i t y of a p r e s e n t or t h r e a t e n ed v i o l a t i on o f En v ir o n m en t al La w s p e r t a i n i ng t o t h e A s se t s t o be A c qu i r ed.
5.18 R i g ht t o O p e r a t i on s . T o S e l l e r ’ s k no w l ed g e, w it h o ut i n d e p e n d ent i n v e s t i g a ti o n , S e ll e r h a s a l l c on t r a c ts , r ec o r ds a nd do c u m en t s n e c e s s a r y t o c o nduct it s o p e r a t i ons i n Se l l e r ’ s o r d i n a r y cou rs e o f bu si n e s s p e r t a i n i ng t o t he A ss e t s t o be A cq u i r ed and Se ll e r s h a l l p r o v i de at S e ll e r ’ s o f f i ces a p e rs o n f a m ili a r wi t h t he s a m e d u ri ng t h e I n s p e c t i on P e r i od f or B u y er t o m eet wi t h and h a v e i n f o r m a ti o n al d is c u s s i ons a s t o s u c h con t r a c ts , r e co r ds and do c u m en t s w i t hout w a rr a n t y of t he i n f o r m a ti o n p r o v i d e d by s u c h p e rs o n.
ART I CLE 6
RE P RESEN TA T IO NS AND W ARRANT I ES A N D REL A TED C O VENAN T S AND AGREE M ENTS O F B U YER
Bu y er r epre s e n t s and w a r r a n t s t o S e l ler t h a t :
6.1 C o m p a ny S t and i n g . B u y er i s a l i m it ed l i a b i l it y co m p a n y , du l y o r g an i z ed, v a li d l y ex i s t i ng and i n g ood st a nd i ng und e r t h e l a w s of t he S t a t e of Lou i s i ana and t h a t B u y er s h a l l be qu a l i fi e d t o do bu si n e s s and i n g ood st a nd i ng i n t he S t a t e of F l o r i da as of t h e C l o si ng D a t e. B u y er h a s t he r equ i s i t e po w e r and a u t h o r i t y t o en t er i n t o t h i s A g r ee m en t . A t C l o si n g , B u y er wi l l h a v e a l l t he r eq u i s i t e po w e r a nd au t h o r i t y t o o w n, l e a s e and op e r a t e t he A ss e t s t o be A cqu i r ed, t o c a rr y on i t s b u s i n es s as t o be cond u c t ed, and h a s t he r eq u i s it e po w e r and a u t ho r it y t o p e rf o r m t he t e r m s of t h i s A g r ee m ent a n d co n s u m m a t e t h e tr a n s a c t i ons con t e m p l a t ed h e r eb y .
6.2 A u t ho r i z a t i on o f A g r ee m en t ; N o Br ea c h. B u y er h a s t ak en a l l n ec e ss a r y and p r o p e r a c ti o n t o r a t i f y , au t h o r i z e and a p p r o v e t h i s A g r ee m en t , t h e con s u m m a ti on o f t h e t r a n s a c ti o n s co n t e m p l a t ed h er eby and, o t h e r t h an t he qu a l i f i c a t i on of B u y er t o d o bu si n e s s i n t he S t a t e of F l o r i d a , t he p e r f o r m an c e by B u y er of a l l t he t e r m s and cond i t i ons h e r e o f on i t s p ar t t o be p e rf o r m ed. T he e x e cu t i on a nd d e l i v e r y of t h i s A g r ee m ent by B u y er do e s no t , a n d t he co n s u m m a ti on of t he t r an s a c ti o n s con t e m p l a t ed h e r eby w i l l not r e s u l t i n any b r ea c h or v i o l a t i on of or d e f a u l t u n d e r t h e t e r m s , cond it i ons o r p r o v is i ons of B u y e r ’ s C e r t i f i c a t e o f F o r m a ti on, O p er a ti ng A g r ee m ent or any st an d i ng r e s o l u t i on or co ns ent o f i t s m e m b ers .
6.3 C oope r a t i on wi t h S e l l e r . B u y er a g r ees t o c o op e r a t e w it h S e l l er i n S e l l e r ’ s e f f o r t s t o s ec u r e any r eq u i r ed co n s e n t , i f an y , of any p a r t y t o t he A s s u m ed A g r e e m en t s by t he r e s p ec t i v e p a r t i es i n v o l v ed i n t h e a s s i g n m ent and a ss u m p ti on by B u y er o f t he A s s u m ed A g r ee m en t s (i n c l u d i ng t h e Oi l , G a s and M i n e r al L ea s e s ) and i n con n ec t i on w it h a ny o t h e r a s s i g n m en t s t o or a ss u m p ti o n s by B u y er con t e m p l a t ed by t h i s A g r e e m en t .
6.4 A ss u m p ti on by B u y e r . B u y er s h a l l a s s u m e and p e rf o r m t he ob l i g a ti o n s of Se l l e r , i f an y , w h i ch a r i s e fr om and a f t e r t he C l o s i ng D a t e und e r t h e A ss u m ed A g r ee m en ts .
7 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
6.5 B i nd i ng O b l i g a t i on s . T h i s A g r ee m ent h a s b e en d u l y e x e cu t ed and d e l i v e r ed by B u y er and con s ti t u t e s , a n d, upon t he qu a l i f i c a t i on of B u y er t o do bu s i n e s s i n t h e S t a t e of F l o r i d a , t he o t h e r i n s tr u m en t s t o be e x ec u t ed and d e l i v e r ed pu r s u a n t h e r e t o w h en d u l y e x ec u t ed and d e l i v e r ed by B u y er wi l l con s ti t u t e, l e g a l , v a l i d and b i nd i ng ob l i g a ti o ns of B uy er en f o r cea b l e a g a i n s t B uy er i n acc o r d a n ce w i t h t h e i r r e s p e c ti v e t e r m s .
ART I CLE 7
C O NSENTS AND G O V E RN M EN T AL F I L I NGS
Fo ll o w i ng C l o si n g , B u y er s h a l l be r e s pon s i b l e t o p r o m p tl y no t i f y any app li c ab l e t h ir d p a r ti e s and g o v e r n m en t al a g en c i es o f t he ch a n g e of o w n e rs h i p i n t he A ss e t s t o be A cq u ir e d p r o v i d e d s u ch no t i c e i s r eq u ir e d as a m a tt e r of l aw w it h S e l l er t o j o i n i n and co n s ent t o s u c h no t i c e ( s ) .
ART I CLE 8
C O VENANTS OF SELLER
Se l l er c o v en a n t s and a g r ee s t h a t f r om and a f t er t he d a t e o f t h i s A g r ee m ent a n d t o t h e C l o s i ng
Da t e t h a t :
8.1 P r e s e r v a t i on of A ss e t s t o b e A cqu i r ed.
(a) Sel l er s h a l l in t h e or d in a ry course o f bus i ne s s in a cc orda n ce w i t h pa s t bus i ness pra c t i ces co n si s te n tly a p p l ied ( i ) c ondu c t in the or d i nary co u rse of Se l l e r’s b u sin e ss the op e r a tion o f Sel l e r ’s bu s ine s s w ith r es p ect to t he A ss e ts to be A c q uir e d, and ( i i) k eep i ts bu s i ness boo k s, re c ords a nd f i les re l a t ed t o t h e A ss e t s to b e A cqu i red ac c or d i ng to G ener a lly A cc e pt e d A ccoun t ing Pri n ci p l e s (“ GAA P ” ).
(b) I n connec t ion wi th the f o r e g oin g , except as o th e r wi se pro v ided h e r e in, S e ll e r sha l l ha v e the ri g ht d u r i ng the term of t his A g ree m ent, un t il the con c lu s ion o f t h e I nspecti o n Pe r iod and B u y er’s d e li v ery of the G o For w ard N o ti c e, to m odify the Oi l, G as and M i ner a l Lea s es a n d oth e r a g ree m ents in the S e l l er ’ s ordi n ary cour s e of bu s ine s s aff e c t ing the Mi n er a l Es t ate s , R o y alty and O th e r Min e r a l I nteres t s (“ A g r e e m ent M od i fi c a t i ons ” ) and to en t er i n to a g ree m ents wi th th i rd p a r t ies to r e l ease por t io n s of i ts M in e r a l Es t ate s , R o y alty and O th e r M i ner a l I ntere s ts a n d to g rant rel e as e s t h er e to t o t h ir d par t i e s in Se l l e r ’ s or d in a ry cour s e o f bu s in e ss a nd t o h onor a ny exi s ting a g ree m ents wi th re s pe c t t he r e t o (su b je c t to the S e l l e r’s re s er v ati o n of a l l r i g hts and re v enues w ith res p e c t to t he Pre - Exis t ing R ele as e A g ree m ent as pro v ided f or in S e c t ion 8. 1 (d) be l o w ) and any a g ree m ents ent e red in t o du r ing the I nspection P e r iod (c o l l ec t i v ely the “ T h i rd P a r t y R e l e a s e s ” ). N o t wi th s tan d ing t h e f o re g oin g , Se l l e r s h a l l pro v ide c o pi e s of such A g ree m ent M o d i fi c a t ions and T h ird P a r ty R elea s es to B u y er (to g et h er w ith any then a v ail a ble c o re c lo s ing docu m ents wi th re s pe c t t h er e to t o be ex e cu t ed by S e ll e r, if an y ) at l e a s t f i v e (5) B u si n ess D a y s pr i or to the e xec u t ion o f t he s a m e by Sell e r. B u y er s ha l l h a v e the ri g ht to re v iew a nd pro v ide co mm ents to the s a m e but shall n ot ha v e the ri g ht to r equ i re c h an g es, a nd B u y er sha l l ha v e no ri g ht o f co n se n t to the pr op osed A g ree m ent M od i f i ca ti ons and Th i rd P a rty R el e a s es p r ese n ted to B u y er.
(c) I n connec t ion wi th t h e T h i r d Party R ele a ses ( su b je c t to the Se l l e r’s res e r v at i on o f all ri g h t s and re v enues w i t h res p e c t to the P re - Exis t i n g R elease A g ree m ent a n d r i g ht to m a k e any Sell e r des i red m odi f ic a ti o ns t h e r e to as p ro v ided f o r in S ec t i o n 8.1(d) b elo w ), f rom and af t er t he E f fe c ti v e D a t e of th i s A g ree m ent, any net s a les pr o ce e ds re c ei v ed b y Sell e r a f t er ded u c t ion of all c lo s ing co s ts, bro ke r fees, le g al f e es and o t her t hird p a rty and ac t ual o u t of poc k et costs a n d expe n ses asso c ia t ed w ith S e l l e r’ s A g ree m ent Modi f ic a t i on a n d T h ird P a rty R ele a ses ( “ N et R e l e a s e S a l e P ro c eed s ” ) , w ith such N e t R el e a s e Sale P roc e eds to be e s t ab l i s hed by the c lo s ing st a te m ent f o r any such r e l ea s es by Sel l er from and a f ter t h e Eff e c t i v e D a t e o f th i s A g r e e m ent, sh a ll be a c r ed i t to B u y er r e f l ec t ed o n the C lo s ing St a te m ent a g a i n s t t h e Purch a se P r i ce due to Se l l e r a t Cl os i n g . Se l ler s h a l l p r o v ide B u y er wi th co p ies of the ap p l i ca b le ex e cu t ed
8 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
T h ir d Pa r t y R e l ea s e c l o s i ng do c u m en t s p r o m p tl y f o ll o w i ng t he c l o s i ng t h e r eof t o g e t h e r w it h s u c h r ea s on a b l e s u p po r ti ng do c u m en t a ti o n as Se l l e r m ay r ea s on a b l y h a v e a v a il ab l e t o i t wi t h r e s p e ct t o t h e c l o s i ng st a t e m ent f or s u c h T h ir d P a rt y R e l ea s e upon t he w ri t t en r equ e s t of t h e B u y er t h er e f o r e s p e c if y i ng w h a t s p e c i f i c s upp o r t i ng do c u m en t a t i on t he B u y er i s s e e k i ng as t o a s p ec i f i c i t em on s u c h c l o s i ng st a t e m en t . Se l l e r s h a l l f u r t h er p r o v i de B u y er wi t h a r e c on c i l i a t i on of t he c a l c u l a ti o n of a l l N e t Se t t l e m ent P r o c e eds at l e a s t f i v e ( 5) d a y s p ri o r t o t he C l o s i ng a n d s h a l l p r o v i de B u y er any do c u m en t a t i on p e r t a i n i ng t h e r e t o r e qu e s t ed by B u y er p ri o r t o C l o si n g . Se l l e r s h a l l r e t a i n t he N e t R e l ea s e S a l e P r o c eed s .
(d) Sel l er d i s c los e s to B u y er that Se l l e r has en t e r ed in t o an ac t i v e a g ree m ent w ith a th i rd p a rty to r e le a se p o r t i ons of i ts M in e r a l E s t a tes, R o y alty and O th e r Mi n e r al I nter e sts in H e ndry C ount y , Fl o ri d a, a s s et f o r th on Sched u l e E a tt a ch e d he r eto and i n co r por a ted her e in by r e f ere n ce and w hich i s c u rr e n t ly pr o j e c t e d to c lose o n or a bout Ju n e 30, 2016 (c o l l ec t i v ely t h e “ P r e - E x is t i ng R e l ea s e A g r e e m en t ”) a nd t hat S e ll er s h a l l ha v e t h e r i g ht d u ri n g the t e rm of th i s A g ree m ent u n t i l t h e c lo s ing of t h e tra n sa c t i ons c o nte m pl a ted by this A g ree m ent, to c arry out the s a m e in Sel l er ’ s or d in a ry cour s e o f busi n ess. B u y er s ha l l n o t r ecei v e a c re d it a g a i nst the Purch a se P r i c e f o r any pr o ceeds ea r ned by Sel l er in conne c t i on w ith t he cl o sing of the Pre - Exis t ing R elea s e A g ree m ent. Seller s h a l l r e ta i n for S e ll e r ’ s acco u nt all p r oc e eds f r om the cl os ing of the P r e - Existing R e lea s e A g ree m ent, and any such p roc e eds sh a ll b e dee m ed fu l ly ear n ed by Se l ler.
(e) Except as ot h er w ise pro v ided he r ein, a f t e r t he c o n clu s ion of the I nspe c ti o n Peri o d and B u y er’s d e li v e r y of the G o For w ard N ot i ce, Se l ler wi ll n o t ent e r i n to any new A g ree m ent Mod i f i ca t io n s or T h i r d Pa rt y R eleases w it h out B u y e r ’s conse n t a n d ap p ro v al, s uc h B u y er appro v al not to be u n re a sona b ly d e la y ed o r w it h he l d, a nd p ro v ided t h at B u y er sh a l l be d e e m ed t o ha v e c o nse n ted t o a ny such A g ree m ent M od i f i ca t ions o r T h ird P a r ty R ele as es i f B u y er i s g i v en no t ice th e re o f and B u y er do e s not i n form Sell e r in w r i ting of B u y er’s appro v al or d i s appro v al wi th i n ten (1 0 ) d ay s of B u y er’s r e ce i pt of such n o t ice. E xce p t a s s pec i f i ca l ly pro v ided in t his S ec t ion 8.1 a n d su b j ect to a ny A g ree m ent Mod i f i ca t io n s and T h ird P a rty R ele a ses, S e l ler sh a ll us e co m m erci a lly rea s ona b le eff o rt to p res e r v e in f u l l for c e a n d e ff e ct any and a l l Oi l, G as, and M ine r al l ea ses, o r o th e r a g r e e m ents t h at re l a t e to t h e A s s e t s to be ac q u i red.
(f) Sel l er is l es s or un d er the “ K er o g e n L e a s e ,” a s d e fi ne d in Sc h edu l e B - 3 attac h ed her e to. N o t wi th s tan d ing a ny thing cont a in e d in t h is A g ree m ent t o t h e c o n t rar y , f r o m the Eff e c t i v e D ate of th i s A g ree m ent unt i l the C l osing of the t r ans a c t ions co nte m pla t ed by this A g ree m ent, S e l l er s h a l l ha v e the ri g ht t o a m end and m odify the ter m s of the K e ro g en Lease in S e l l e r ’s o rd i nary cour s e of bu s ine s s and cons i s t ent w i t h p ri o r m odi f ic a ti o ns th e re t o, p ro v ided t hat d u r ing the t e rm of t h is A g ree m ent, Sel l er sh a l l not: ( i ) in c rea s e t he t ot a l a crea g e s ub j e ct to the K e ro g en Le a se, o r ( i i ) e n cu m ber any land o u t s ide o f L e e and H en d ry C ounti e s p u rs u ant to t h e K e r o g en Leas e . S el l er sh a ll p ro v ide c op i es o f such a m end m ents and m odific a ti o ns to t h e K e r o g en Le a se t o B u y er a t l ea s t f i v e (5) B u si n ess D a y s pri o r to t he e xec u t i on of t h e sa m e by Sel l er. B u y er s ha l l ha v e t he ri g ht to r e v iew a n d pro v i d e c o m m ents to t he sa m e but sh a ll n o t h a v e the r i g ht t o re q u i re c h an g es, and B u y er s h a l l ha v e no ri g ht of con s ent to the p r o posed a m end m ents a n d m odific a ti o ns p re s en t ed t o B u y er. Se l ler w i l l p r ov ide B u y er w ith exe c ut e d cop i es o f any su c h a m en d m ents or m odif i c a t i ons w it h in ten ( 1 0) B u s i ness D a y s a f ter fu l l e x e c uti o n of t h e sa m e. A ll ro y al t ies, d e lay re n t a l pa y m ents, dr il ling co m m it m ent pe n a l ty pay m ents, a nd a ll oth e r p ay m ents d u e a n d paid und e r the K e ro g en Lease f o r the c al e nd a r y ear in w hich the C l o sing oc c urs sh a ll be p ror a ted in acc o rda n ce wi th Ar t i cle 15.
( g ) A ll p ay m ents un d er t h e Oil , G as a n d M in e r a l L e ase s , i nclu d ing but not l i m ited to ren t s, ro y a l t i es, d e lay re n t al pa y m ents, dr i l l ing co m m i t m ent pen a lty pa y m ents, and any other re v enue ear n ed and r ec e i v ed by Sel l er f rom the Ef f e c ti v e D ate of th i s A g ree m ent unt i l t h e C lo s ing of t h e tra n sa c t i ons c o nte m pl a ted by this A g ree m ent sh a ll b e fu l ly earn e d by Sell e r, a nd Se l ler sh a ll r e t ain a l l
9 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
s u c h p a y m en t s f o r S e ll e r ’ s accou n ts . A l l s u c h p ay m en t s s h a l l b e s u b j e c t t o p r o r a t i on f or t he c a l en d ar y e a r i n w h i ch t he C l o si ng o c c u r s , as app l i c ab l e, i n ac c o r da n c e wi t h Ar t i c l e 15.
8.2 L i t i g a ti o n . Se l l er s h a l l p r o m p tl y (i ) no t i f y B u y er i n w ri t i ng of any l a w s u i t s , c l a i m s , p r o c e ed i n g s or i n v e s ti g a t i o ns w h i ch a f t er t he E f f e c ti v e D a t e h e r e o f a r e e x is t i n g , t h r e a t en e d or co m m en c ed a g a i n s t S e l l er o r i t s a f f i l i a t es w it h r e s p e c t t o t he A s se t s t o b e A cqu i r e d ; ( i i ) k eep it s i n s u r a n ce i n p l a c e t h r ou g h C l o si ng , s u b j ect t o s u c h c h an g es i n i n s u r an c e as Se l l e r d e s i r es i n i t s o r d i n ar y co u rs e o f bu s i n e s s , as t o t he A ss e t s t o be A cq u i r ed; a n d ( i i i ) r ea s o n a b l y c o op er a t e wi t h B u y er as t o B u y e r’ s i nq u i r i es a s t o t he st a t us o f t he s a m e.
8.3 O il , G as and M i n e r al L ea s e s . S e l l er wil l n o t m od if y , can c e l o r o t h er w is e ch a n g e any of t he t e r m s , co v en a n t s o r c on d i t i ons of t he O il , G as a nd Mi n e r a l L e a s e s or en t er i n t o any n e w O il , G as a nd Mi n e r a l L e a s e s wi t ho u t t he p r i or w r i tt e n c o n s e n t o f B u y e r ; p r o v i d e d, ho w e v e r , B u y er s h a l l be d ee m ed t o h a v e con s e n t ed t o any s u c h m od ifi c a ti o n, ca n ce l l a t i o n, ex t e n s i on, c h an g e or n e w O il , G as and Mi n e r al Lea s e s i f B u y er i s g i v en w ri t t en no t i c e t h e r eof and B u y er do e s not i n f o r m Se l l er i n w r i t i ng of B u y e r ’ s d is a p p r o v al t h e r e t o wi t h i n t en ( 1 0 ) d a y s o f B u y e r ’ s r e c e i p t of s u c h no t i ce.
8.4 V i o l a t i o n s of L a w . S e ll e r s h a l l p r o m p tl y no t if y B u y er i n wr i t i ng of any w r i t t en n o t i ce o f any v i o l a t i on A pp l i c a b l e L a w s r ec e i v ed by Se l l er a f t er t he E f f e c ti v e D a t e of t h i s A g r ee m ent r e l a t i ng t o t h e A ss e t s t o b e A cq u i r ed and r ea s on a b l y coop e r a t e w it h B u y er as t o B u y e r’ s i n qu i r i es a s t o t he s t a t u s o f t h e s a m e.
8.5 Ex cl u s i v it y . Ex c ept as p r o v i d e d i n Se c ti o n 8.1 abo v e, t h i s A g r e e m ent and t h e tr a n s ac t i o n s con t e m p l a t ed h e r e i n a r e e x cl u s i v e t o B u y e r . E x ce p t as p r o v i d ed i n S e c ti on 8 . 1, du r i ng t he I n s p e c t i on Pe ri o d S e ll e r s h a l l n o t n e g o ti a t e or e n t e r i n t o any a g r e e m ent t h a t i s s ub s t a n t i a l l y s i m il ar t o t h i s A g r ee m ent w it h a t h i r d p a r t y t o s e l l a l l or s u b st a n t i a ll y a l l o f t he a ss e t s t o be acq u i r ed and S e l l er s h a l l not n e g o ti a t e w it h any t h i r d p a r t y f or s u c h an a g r ee m ent e v en i f t he s a m e i s s u b j e c t t o t he t e r m i n a t i on of t h i s A g r ee m en t . A ft er t he co n c l u si on o f t h e I n s p e c ti on P e ri od and B u y e r ’ s d e li v e r y of t he G o Fo r w a r d N o t i ce, B u y er w i l l n o t en t er i n t o a ny a g r ee m ent f or t h e s a l e, l ea s e, ex c h a n g e, o r tr a n s f er of any p a r t or a l l of t h e A ss e t s t o be A c q u i r ed by B u y e r .
ART I CLE 9
I NDE M N IFI C A T ION
9.1 Se l l e r ’ s I nd e m n it y . Sub j e c t t o t he li m it a t i ons s et f o r t h i n S e c ti on 9.5 h e r eo f , fr om and a f t er C l o s i n g , Se l l er s h a l l d e f en d , i n d e m n if y and ho l d B u y er h ar m l e s s fr om and ag a i n s t :
(a) the a gg re g ate dol l ar a m ount of any and all d e bt s , l i ab i l i ti e s, da m a g es, losse s , cos t s, ex p ens e s or c l a i m s (not a s su m ed by B u y er pur s uant to t h is A g ree m ent) a r i sing out of the b u si n e s s ac t i v it i es o f S e l l er wi th re s pect to the A s s e ts to be A c q uir e d a ri s ing pr i or to t he Cl osing D at e ;
(b) any and a ll da m a g es, exp e nses and lo s ses su f fe r ed, paid or inc u r r ed by B u y er ar i sing out of o r due to b r each e s of re p re s en t a t ion, c o v enant, a n d w a r ra n ty on t he pa r t o f Se l l e r h e r e in cont a in e d; and
(c) any and a l l r e aso n ab l e c o sts and ex p en s es o f B u y er r e l a ted to t he f o re g oing in c lud i ng reason a ble a t t or n e y ’ s fees i n conn e c t ion wit h the pr o sec u t i on, de f ense or app e al of any su i t or ac t ion in c o nne c t i on h e re wi th.
10 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
9.2 B u y e r ’ s I nd e m n it y . Sub j ect t o t he l i m it a t i o n s s et f o rt h i n S e c ti on 9.5 h e r eo f , B u y er s h a l l d ef e n d, i n d e m n if y and s a v e Se l l er h a r m l e s s f r om and a g a i n s t :
(a) the a gg re g ate dol l ar a m ount of any and all d e bt s , l i ab i l i ti e s, da m a g es, losse s , cos t s, e x pen s es o r c l a i m s ari s ing out o f the b us i ne s s a cti v i ti e s o f B u y er and t h e A sse t s to be A c qu i red o r w ith res p e c t to the A ssu m ed A g ree m ents a r i s ing on or subse q ue n t to the C lo s ing D ate;
(b) any and a ll da m a g es, ex pe nses and l o ss e s s u f f e red, paid or i n cu r red by Se l ler ar i sing out of or d u e to b r each e s of r e pr e se n ta t ion, c o v enant, and w a r ra n ty on the pa r t of B u y er her e i n cont a in e d; and
(c) any and a l l re a sona b le c o sts and e xpe n ses of S e l l e r r e l a ted to the f o re g oing in c lud i ng reason a ble a t t or n e y ’ s fees i n conn e c t ion wit h the pr o sec u t i on, de f ense or app e al of any su i t or ac t ion in c o nne c t i on h e re wi th.
9.3 N o ti c e t o I nd e m n if y i ng P a rt y . I f any p art y (t he “ I n d e m n i t e e ”) r e c e i v es n o t i ce of any c l a i m fr om a p ers on or e n t i t y not a p a rt y t o t h i s A g r ee m ent ( a “ T h i rd P ar t y C l a im a n t ” ) or o t h e r co m m en c e m ent of any ac t i on or p r o c ee d i ng by a T h ir d Pa rt y C l a i m ant w i t h r e sp ect t o w h i ch any o t h e r p art y ( or p a r t i e s ) i s o b li g a t ed t o p r o v i de i n d e m n if i ca t i on ( t he “ I nd e m n i f y i n g P a r t y ” ) p u rs u ant t o Sec t i on 9 . 1 or 9 . 2, t h e I nd e m n it ee s h a l l p r o m p tl y g i v e t he I nd e m n if y i ng Pa rt y no ti ce t h e r e o f . Su c h n o t i c e s h a l l be a c ond i t i on p r e c ed e nt t o any l i ab i l i t y of t he I nd e m n if y i ng Pa rt y under t he p r o v i s i ons f o r i nd e m n i f i c a ti o n con t a i n ed i n t h i s A g r ee m ent w it h r eg a r d t o T h ir d P a rt y C l a i m an ts . T he I nd e m n if y i ng Pa rt y s h a l l d e f end, at s u c h I nd e m n if y i ng Pa rt y ’ s o w n exp e n s e a n d by s u c h I nd e m n if y i ng Pa rt y ’ s o w n coun s e l , a ny s u c h m a tt e r i nv o l v i ng t he a ss e r t ed li a b i l it y of t he I nd e m n it ee. I n any e v en t , t he I nd e m n it ee, t he I nd e m n if y i ng Pa rt y and t he I nd e m n if y i ng Pa rt y ’ s coun s e l s h a l l co o p e r a t e i n t he co m p r o m is e o f , o r d ef e n s e a g a i n s t , any s u ch a s s e r t ed l i a b i li t y . B o t h t he I nd e m n it ee and t he I nd e m n if y i ng Pa rt y m ay p ar t i c i p a t e i n t h e d e f e n s e o f s u ch a ss e r t ed l i ab i l i t y a n d n e i t h e r m ay s e t t l e or c o m p r o m is e any c l a i m o v er t he o b j e c ti on o f t he o t h e r . I f t he I nd e m n if y i ng Pa rt y choo s e s t o d e f end any c l a i m , t he I nd e m n it ee s h a l l m a k e a v a il ab l e t o t he I nd e m n if y i ng Pa rt y any bo o k s , r eco r d s or o t h er d o cu m en t s w it h i n i t s con t r o l t h a t a r e n ec e ss a r y or ap p r o p ri a t e f or s u c h d e f en s e.
9.4 Exp i r a t i on of I nd e m n it y R i g h ts . E i t h e r P a rt y ’ s r i g ht t o a s s e r t a c l a i m a g a i n s t t h e o t h e r Pa rt y f or i nd e m n i f i c a t i on p u rs u a nt t o t h i s A g r ee m ent s h a l l s u r v i v e t he C l o s i ng p r o v i d e d t h at t he r i g ht t o a ss e r t a c l a i m pu rs u a nt t o S ec t i on 9. 1 ( b) and 9. 2 ( b ) s h a l l ex p i r e upon t h e exp i r a ti o n of t w e l v e ( 1 2 ) m on t hs f o l l o w i ng t he C l o s i ng D a t e ( ex c e p t c l a i m s a ss e r t ed p ri o r t o s a i d ex p i r a t i on d a t e s h a l l co n ti n ue t o be s u b j e ct t o i n d e m n ifi c a t i o n ) ; p r o v i d e d, h o w e v e r , w it h r e s p ect t o t h e ri g ht t o a s s e r t a c l a i m pu rs u a n t t o Sec t i on 9. 1 ( b ) and 9 . 2 ( b ) r e l a t i ng t o t he non - p a y m ent of t a x es o r o t h e r si m il a r c l a i m s under f e d e r a l l aw or any st a t e, cou n t y , m un i c i p a l or o t h e r l o c a l t a x i ng l a w s , s u c h r i g ht s h a l l exp i r e upon t he exp i r a ti o n o f s e v en t y - fi v e ( 7 5 ) d a y s f o l l o w i ng t he d a t e on w h i c h t he r unn i ng of t he s t a t u t e of li m it a ti o n s wi t h r e s p e c t t o any s u c h t a x o r s i m il a r c l a i m s h a l l b ar t he a ss e ss m ent a n d c o l l e c ti o n o f s u c h t a x or s i m il ar c l a i m ; t he p r o v is i ons h e r eof s h a l l n o t be con s tr u ed s o as t o d e p r i v e e i t h e r P a r t y of t he r i g ht t o b e i nd e m n i f i ed and h el d h ar m l e s s wi t h r e s p e c t t o any t a x or si m i l ar c l a i m li a b i l it y a s s e s s ed w i t h i n t he p e r i od p r o v i d e d pu rs u ant t o t h e ap p r op r i a t e st a t u t e of li m it a t i ons or any ex t en s i on t h e r eo f . B uy er and Se l l er m ay on l y w a i v e t he p r o t e c t i on of or ex t end t he s t a t u t e o f li m i t a t i ons wi t h t he p ri o r p er m is s i on i n wr i t i ng of t h e o t h e r P a r t y ; i t b e i ng t he c l e a r u n d e r s t and i ng of t h e Pa r t i es h e r e t o t h at i n no e v ent s h a l l t he P a r t i e s ’ con t i nu e d l i ab i l i t y t o each o t h e r h e r e u nd e r ex t end t h e st a t u t e of l i m it a t i o n s w i t h r e s p e ct t o any t ax o r si m il ar c l a i m li a b i l i t y .
9.5 L i m it a t i on o f R e m ed i e s .
(a) N eit h er P a r ty sha l l be r eq uir e d to i n de m nify the o t h er un d er S e c tion 9.1 o r 9.2 unt i l the a gg re g ate of I nde m nified P a r t y ’ s da m a g es, expen s es, co s ts and lo s ses as to w h ich t h at Pa r ty
11 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
w ou l d o t h e r wi s e b e en t i t l e d t o i n d e m n if i ca t i on un d er Se c t i on 9 . 1 o r 9.2 o f t h i s A g r ee m ent ex c e eds ON E HUNDR ED T HOU S AN D AN D NO / 100 DO LL AR S ( $100, 0 00.0 0 ) ( t he “ B a s k et A m ou n t ” ) , a t w h i c h po i n t each P a rt y s h a l l be li ab l e f or a l l of t he o t h er P a r t y ’ s d a m a g e s , exp e n s e s , c o st s and l o s s es ( i n c l u d i ng t he B a s k et A m oun t) , s ub j ec t t o S e c ti on 9.5 ( b) b e l o w .
(b) T he a m ount of da m a g es, expens e s, c o sts and l os s es u nder S e c t ion 9.1 o r 9.2 f o r w hich Se l l e r and B u y er s ha ll be r e qu i red t o inde m nify the ot h er as a p p l ica b le un d er t h is A g ree m ent s h a l l not e x ceed TWO M I L L I O N AN D NO /100 DO LL A R S ($2,000, 0 00.0 0 ) in the a gg re g ate (the “ C e i li n g A m oun t ” ).
(c) Su b j e c t to S ec t ion 9.6, S e ct i on 12 . 3( b ), Ar t i cle 16 a nd A r t i c le 1 9, the P a r ti e s ac k no w led g e and a g ree t h at th e ir s ole a n d ex c lu s i v e re m edy w ith respe c t to a n y and all cl a i m s for any bre a ch of a ny repr e se n ta ti on, w ar r ant y , co v enan t , ag ree m ent or ob l i g ati o n s e t fo r th h e r e in, s h a l l be purs u ant to t h e inde m ni f ic a tion p r o v isio n s s et f o rth in th i s Ar t i cle 9. I n fu r th e ran c e of t h e f ore g oin g , e a c h Party h e reby w ai v es, to t h e f u ll e st ex t ent p e r m itted u nder la w , a ny and a l l ri g h t s, c l ai m s and c au s es o f ac t ion for any b r each of a n y repr e se n ta t ion, w a r ra n t y , co v enant, a g ree m ent o r o b l i g ation s e t fo r th h e r ein i t m a y ha v e a g ainst t h e oth e r Par t ies h e r e to and t he i r a f f i l ia t es a ri s ing under o r ba s ed upon any la w , exc e pt purs u ant to t h e i nde m nif i c at i on p ro v isi o ns set f o rth in th i s Ar ti c le 9 (su b je c t t o Se c tion 9.6, Se c ti o n
12.3 ( b ) , A r t i c l e 16 and Ar ti c l e 1 9 ) , p r o v i d e d n o t wit h st a n d i ng a n y t h i ng i n S e c t i on 9.6 t o t h e con t r a r y , B u y e r ’ s co s t s , f e e s , or a ny o t h e r d a m a g es s ou g ht fr om Se ll e r pu r s u a n t t o S e c t i on 9.6 s h a l l not e x c e ed t h e li m it a ti o n a m ount s e t f o r t h i n Se c t i on 9. 5 ( b ) .
9.6 Sp e c i f i c Pe r f o r m an c e W i t h R e s p e c t t o S e l l e r ’ s C l o si n g O b li g a ti on. T he P a r t i es ag r ee t h a t ir r ep a r a b l e d a m a g e w ou l d o c cur t o B u y er i f B u y er h a s p e r f o r m ed a l l o f B u y e r ’ s ob li g a t i ons u n d e r t h i s A g r ee m ent and S e l l er h a s r e f u s ed t o c l o s e un d er t h i s A g r ee m ent f or r ea s o ns o t h er t h a n a B u y er d e f a u l t under t h i s A g r ee m ent o r t h e f a i l u r e o f a S e l l er co n d i t i on t o c l o s i ng un d er t h i s A g r ee m en t , and t h at i n s u ch e v en t , B u y er s h a l l be en t i t l ed t o s p e c i f i c p e r f o r m an c e of Se l l e r ’ s ob l i g a t i on t o con v ey t he A ss e t s t o be A cqu i r ed t o B u y er on t h e t e r m s and con d i t i ons of t h i s A g r ee m en t . Shou l d B u ye r i n s t it u t e a ny ac t i on o r p r o c e ed i ng t o en f o r ce s p ec i fi c p e rf o r m an c e a g a i n s t S e l l e r , t he p r e v a i l i ng Pa r t y s h a l l be en t i t l ed t o r ec e i v e co s t s a n d ex p en s es i n c on n ec t i on t h e r e wi t h, i n c l u d i ng but n o t li m it e d t o r e a s o n ab l e a t t o r n e y ’ s f e e s , e xp e r t f ee s , and cou r t c o s t s , f r om t he non - p r e v a i l i ng Pa rt y .
9.7 L i qu i d a t ed D a m a g e s . Se l l e r a g r ees t h at t he li q u i d a t e d d a m a g es as p r o v i d e d f or i n Sec t i on
12.4 a r e Se l l e r ’ s ex c l u s i v e r e m edy f or B u y e r ’ s d e f a u l t or m isr e p r e s e n t a t i on u nd e r t h i s A g r ee m ent p r i o r t o
C l o s ing and t h a t t he P ar t ies a g r ee th a t s u c h d a m ag e s b e i ng i n c ap a b l e of d e te r m i n a t i on due t o t h eir un c er t a i n t y but w it h s u c h a m ount t o be a r e a s on a b l e e s t i m a ti on by t he P a r ti e s of s u c h d a m a g e s . No t w i th s tan d i ng t he f o r e g o i n g , i f th i s A g r ee m ent is te r m i n at ed by Sel l e r p u rs ua nt t o S e ct i on 12. 1 ( d) or Sect i on 12. 1 ( e ) , Bu y er s h a l l be l i a b l e t o S el l e r f or a n y d a m a g es ar i s i ng fr om Bu y e r ’ s I nd e m n it y as se t f or t h i n S e ct i on 19.2, an d no t wi t h s t an d i ng an y t h i n g t o t he cont r a r y , i f Buy e r d e faul t s u n d e r a ny ob li g at i o n s o r li a bi l i t y of Bu y er t o S el l e r fr om and a f ter C l o s i n g , S e ll e r s h a l l h a v e all l e g al ri g hts a n d r e m ed i es a g a i n s t Bu y er wi t h r e s p e c t th e re t o, s u b j e c t to t he p r o v isi o ns of S ect i o n s 9.2, 9.3, 9.4, and 9 . 5 h er e o f .
12 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
C O ND I T IO NS T O O B L I G A T IO NS OF B U Y ER
The ob l i g a t i ons o f B u y er t o con s u mm a t e t he p u r c h a s e of t he A s s e t s t o be A cq u ir ed at C l o s i ng s h a l l be s u b j e c t t o: ( a) t he d e li v e r y t o B u y er of t he i t e m s d es c r i b e d i n S e c t i on 13 . 1 of t h i s A g r ee m en t , and ( b) t he s a t i sf a c t i on of t h e f o l l o w i ng c o nd i t i on s , any and o r a l l o f w h i ch m ay be w a i v ed i n wr i t i ng by B u y e r :
10.1 R ep r e s en t a t i ons a n d W a rr an t i e s . Each o f t he r e p r es en t a t i ons and w a r r a n ti e s o f S e l l er con t a i n e d i n t h i s A g r ee m ent s h a l l be t r ue a n d co r r e c t i n a l l m a t e r i a l r e s p e c t s on a nd as of t h e C l o s i ng D a t e w it h t h e s a m e e f f e c t as i f m ade at s u c h t i m e; and t h at S e l l er s h a l l h a v e p e r f o r m ed and co m p li ed wi t h e a ch of t he a g r ee m en ts , co v en a n ts , s t i p u l a t i o n s , t e r m s and c ond i ti o n s h e r e of ap p l i ca b l e t o Se l l e r , i n c l ud i ng t h e co v en a n t s and a g r ee m en t s s et f o r t h i n A r t i c l e 8 h e r eo f .
10.2 N o L i t i g a ti o n. N o s u i t , a c ti on or o t h er p r o c ee d i ng s h a l l h a v e b e en i n s t i t u t ed o r t h r ea t e n e d by any p ers on o t h e r t h a n B u y er or any a f f i li a t e of B uy er b ef o r e any co u r t or o t h er g o v e r n m en t al a g en c y or i n a r b i t r a t i on t o s et a s i de t he t r a n s a c ti o ns p r o v i d e d f or h e r e i n or t o e n j o i n o r p r ev ent t h e c o n s u mm a ti on t h e r eof or m a k i ng a c l a i m upon or p e r t a i n i ng t o any p o r t i on o f t h e A s s e t s t o b e A c qu i r ed, o r t h e op e r a ti o ns t h e r eo f , t h at w o u l d c r e a t e a M a t e r i al A d v e rs e E f f e c t .
10.3 N o M a t e r i al C h a n g e i n A s s e t s t o be A cq u i r ed. T h e A ss e t s t o be A cq u i r ed s h a l l not b e s u b j e ct t o any M a t e r i a l A dv e rs e E f f e ct fr om and a f t er t he E f f e c ti v e D a t e o f t h i s A g r ee m ent (i n d i v i du a l l y or c o l l ec t i v e l y ) .
ART I CLE 11
C O ND I T IO NS T O O B L I G A T IO NS OF SELLER
The ob l i g a ti o ns o f Se l l e r t o con s u m m a t e t h e s a l e of t h e A ss e t s t o be A cq u i r ed a t C l o s i ng s h a l l b e s u b j e ct t o : ( a ) t he d e li v e r y by B u y er t o S e l l er o f t h e i t e m s d es c r i b e d i n S ec t i on 13.2 of t h i s A g r ee m en t , and ( b ) t h e s a t i sf a c t i on of t he f o l l o wi ng cond i ti o n s , a n y and or a l l o f w h i c h m ay be w a i v ed i n wr i t i ng by Se l l e r :
11.1 R ep r e s en t a t i ons a n d W a r r a n t i e s . E ach of t h e r e p r e se n t a ti o n s a nd w a r r an t i e s o f B u y er con t a i n e d i n t h i s A g r ee m ent s h a l l be t r ue a n d co r r e c t i n a l l m a t e r i a l r e s p e c t s on a nd as of t h e C l o s i ng D a t e w it h t he s a m e e f f e c t a s i f m ade a t s u c h t i m e; and t h a t B u y er s h a l l h a v e p e rf o r m ed and co m p l i ed wi t h ea c h of t he a g r e e m en ts , c o v en a n ts , s t i pu l a t i on s , t e r m s and c ond i ti o n s h e r e o f a pp l i c a b l e t o B u y e r , i n c l u d i ng t he co v en a n t s and a g r ee m en t s s et f o r t h i n A r t i c l e 6 h e r eo f .
11.2 N o L i t i g a ti o n. N o ac t i on, s u i t or o t h er p r o c ee d i ng s h a l l h a v e b e en i n s t i t u t ed o r t h r ea t e n e d by any p er s on o t h e r t h a n S e l l er or an a f f i l i a t e o f S e l l e r b e f o r e any co u r t o r o t h e r g o v e r n m en t al a g en c y o r i n a r b i t r a t i on t o s et a s i de t he t r an s a c ti o n s p r o v i d e d f o r h e r e i n or t o e n j o i n o r p r ev ent t he con s u m m a ti on t h e r eo f .
ART I CLE 12
TER MI N A T IO N
12.1 T e r m i n a t i on. T h i s A g r ee m ent m ay be t e r m i n at e d:
(a) by w rit t en a g ree m ent o f B uy er and S e ll e r;
13 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
( b) by B u y er at i t s s o l e e l e c ti o n f o r any r e a s on w h a ts o e v er or no r e a s on a t a l l , u p on w ri t t en n o ti c e t o S e l l e r g i v en p ri o r t o t he e x p i r a t i o n of t h e I n it i al I n s p e c t i on Pe r i od ( a s d e f i n e d i n Sec t i on 1 9 .1 ( a ) ) or t he E x t e nd e d I n s p e c t i on P e r i od i f a pp l i ca b l e ( as d e f i n e d i n S e c ti on 19. 1 ( a ) ) ;
(c) pri o r to C lo s in g , by B u y er in i t s s o le d i sc r e t ion i f, s u b seque n t to t h e d a te of t h is A g ree m ent, a l l or a po r ti o n ha v ing a M at e r i al A d v erse E f f e ct upon the A ss e ts to be A cq u i r ed is ta k en by e m inent do m ain (or i s t h e s u b j e c t o f a pe n ding or co n t e m plated ta k ing w hich has not b een consu m m ated), pro v ided th a t in a ny such ev ent B u y e r , should B u y er e le c t to t e r m inate th i s A g re e m ent, sha l l no t ify Se l l e r of t he t e r m inat i on o f th i s A g ree m ent not l a ter t h an t en ( 1 0) da y s a f t e r B u y e r ’ s rec e i p t o f S e l l e r ’ s wr i t ten not i ce of such e v ent or s h all be d e e m ed to h a v e w a i v ed any su c h ter m in a tion ri g ht h e r e in a nd sh a l l proc e ed to C l o sing ( in s uch c a se B u y er sh a ll re c ei v e a l l pa y m ent a r i s ing from the c onde m nat i o n proc e ed i ng att r ib u ta b le to t he Sec t ion 3. 1 ( a ) po r tion o f the A ss e ts to b e A cqu i red and a pr o ra t ion b e t w e e n B u y er and S e l l e r o f any p o r t ion o f the e m inent do m a i n pr o cee d s a t t r i bu t ab l e to t he Se c t ion 3 . 1( b ) p o r t ion of t he A s se t s to be A cq u i r ed b a sed o n p r e - C losing and po s t - C losing g ood fa i th a l loc a t i ons o f the sa m e a g reed to by B u y er and Sel l er wi th r esp e ct t he r eto, w heth e r t h e pa y m ent is m ade b e fore o r a f t e r t h e C los i n g );
(d) by eit h er P a r t y , at C lo s ing or by n o ti c e to the o t her P arty p ri o r to C lo s ing if any of the c o nd i t i ons p r ece d e n t to t h e pe r for m ance of su ch Part y ’ s o b l i g atio n s at C lo s ing are in c apa b le of bein g , or sh a ll not ha v e b e en f u l f i l led, p r o v ided th a t t he f a i lure to f u l f i l l s uch c o ndi t io n s w as not ca u s e d by the t e r m ina t ing Part y ; o r
(e) by eith e r P a rty if the C lo s i ng shall not h a v e occ u r r ed by the C lo s ing D ate ot h er than d ue t o t h e d e fa u lt or f a ult o n t h e o t her Pa r t y .
12.2 E f f e c t of T e r m i n ati o n. I f t h i s A g r ee m ent i s t e r m i n at e d as p r o v i d e d i n Sec t i on 1 2.1, t h i s A g r ee m ent s h a l l no l o n g er be of any f o r ce o r e f f e c t a n d t h e r e s h a l l be no l i ab i l i t y on t he p a r t of a ny Pa rt y or i t s r e s p e c t i v e m e m b ers , m an a g e rs , p a r t n e rs , d i r e c t o rs , o f f i c e r s o r s h a r eh o l d e r s ex c ept as s e t f o r t h i n Sec t i on 1 2 .4 and t h o s e p r o v is i ons o f t h i s A g r ee m ent t h at e x p r e s s l y s u r v i v e t e r m i n a t i on.
12.3 A pp li c a t i on o f I n it i al Pa y m en t , E x t e n si o n Pa y m ent and Se c ond P ay m en t .
(a) U pon t e r m inat i on of t h is A g ree m ent by B u y er and Sel l er p ur s ua n t to S e c ti o n
12.1 ( a ) or by B u y er pu rs u ant t o S e c t i on 12. 1 ( b ) : ( i ) t he I n iti a l Pa y m ent s h al l b e r e t u r n e d p r o m p tl y t o
Bu y er i n f u ll , and the P a r t i es h e r e t o s h a ll in s t r u c t E s c r ow A g ent a c co r d i n g l y , ( i i ) t he S e cond Pa y m ent s h a ll b e re t u r n e d pro m p tl y to Bu y e r , and ( i i i) t he Exte n si on P a y m ent s h a ll b e p a i d i n full t o S e l le r , and t he
Pa r t i es h e r e t o s h a l l i n s t r u c t E s c r ow A g ent acc o r d i n g l y .
(b) I n the e v ent of a t e r m ina t ion by Se l ler p u rsu a nt to Sec t ion 12. 1 (d) or 12. 1 ( e ) res u l t ing bec a use o f t he d e fau l t o r m isre p re s en t a t ion o f B u y er und e r t his A g ree m ent, the I nit i al P a y m ent, Exten s ion P a y m ent, and t he Sec o nd Pa y m ent if p r ev iously m ade by B u y e r , sha l l be p aid pro m ptly t o Sel l er and t he P a r t i e s h e re t o sh a ll in s tr u ct E sc r ow A g ent a c co r din g l y .
(c) I n the e v ent of a t e r m inat i on by B u y er pursu a nt to Sec t ion 12 . 1( c ), 12 . 1( d ) o r
12.1 ( e ) , t h en t h e I n iti al Pa ym en t , Ex t en s i on Pa y m en t , and t he S e cond Pa y m ent i f m ade by B u y e r , s h a l l be r e t u r n e d p r o m p tl y t o B u y er i n f u l l , and t he Pa r t i es h e r e t o s h a l l i n s t r u c t E s c r ow A g ent a cc o r d i n g l y .
12.4 L i a b i l it y . T he t e r m i n ati o n of t h i s A g r ee m ent pu r s u ant t o Se c ti on 12.1 ( a ) , 1 2 .1 ( b) o r
12.1 ( c ) and t h e d e l i v e r y of t h e a pp l i c a b l e p a y m ent as s et f o rt h i n S ec t i on 1 2.3, s h a l l r e l ea s e B u y er of a l l li a b i l i t y under t h i s A g r ee m ent o t h e r t h a n f or d a m a g e s , i f an y , a r i si ng fr om B u y e r ’ s I nd e m n it y as s et f o r t h i n S e c t i on 19.2. T he t e r m i n a ti on of t h i s A g r ee m ent by Se l l er pu r s u a n t t o S e c t i on 12 . 1 ( d ) o r S e c t i o n
12.1 ( e ) , s h a l l r e s u l t i n B u y e r ’ s l i ab i l i t y t o S e ll e r b e i ng t he p ay m ent by E s c r ow A g ent t o S e l l er a s s e t f o r t h
14 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
i n Se c ti o n 12. 3 ( b) a nd s h a l l be r e c e i v ed by Se l l er a s l i q u i d a t ed d a m a g es and not a p e n a l t y f or t he d a m a g es a r i si ng f r om B u y e r ’ s d ef a u l t or m is r ep r e s e n t a ti o n, as p r o v i d e d i n S e c ti on 9.7.
ART I CLE 13
ACT IO N T O B E T A K EN A T AND A F TER CL O SING
13.1 Se l l er D e li v e r ab l es a t Cl o s i n g . A t C l o s i n g , Se l l er s h a l l d e l i v er t o B u y e r :
(a) A cl o sing s t a te m ent p rep a r ed by Es c row A g ent in a f o rm appro v ed by t h e P a r t i e s
(the “ C l o si ng S t a t e m e n t ” );
(b) T he Spe c i a l W a r ra n ty D eed sub s ta n t i a l ly in t he form a t tac h ed h e r e to a s E x h i b i t 2
(the “ Sp e c i a l W a r ran t y D eed ”) w i t h r e spe c t to t he M ine r al E s t at e s, R o y alty and O ther M i ne r al I nter e s t s;
(c) A ssi g n m ent(s) and A s s u m ption( s ) of t h e Oi l, G as and M i ne r al L ea se s sub s ta n ti a lly in the f o r m attached he r eto as E x h i b i t 3 ( the “ A s s i g n m ent and A ss u m p t i on A g r ee m e n t ( s ) ” ) ;
(d) A n a f f ida v it of S e l l er to c o m ply w ith T h e F o rei g n I n v est m ent in R e a l P rop e r t y T ax A ct (F I R P T A ), se t t i ng fo r th Se l le r ’ s na m e, add r e s s and Fed e ral tax i de n t i fi ca tion nu m ber and s t a ting th a t Se l l e r i s n o t a “ f o rei g n pers o n” ( the “ F I R P T A ” ) ;
(e) A c e r t i f ic a te of an o f fi ce r o f S e l ler c o n f ir m ing t h at the r ep r ese n t a t i ons and w arr a n t ies o f S e l l er set f o r t h in Ar t i c l e 5 h e re o f b e ing t rue a s of C lo s in g ;
(f) A reso l u t ion f rom Seller ( t o g ether wi th co p ies o r ex c erp t s a t t a ched the r eto from Sel l e r ’ s Ar t i c l es of I ncorp o ra t ion, b y la w s or ot h er o r g ani z a t ion a l d ocu m ent s ): ( i) e v idenc i ng the a u th o r i ty of S e l l er and i ts B oa r d o f D ir e ct o rs to a u tho r i z e the t r a nsa c tio n s con t e m plated by t his A g ree m ent, and, ( i i ) desi g na t ing the c o rpo r a t e r epr e se n ta t i v e( s ) and t i t l e (s) ther e of a u th o ri z ed to s i g n the C l o sing D ocu m ents for a nd on b eh a lf of the S e l le r .
( g ) A ny 1031 e x chan g e d o cu m ents r eas o na b le req u i r ed by any Pa r ty or i ts exc h an g e a g ent, a c co m m odator o r e x chan g e co m pany
(h) A C ert i f i ca t e of G ood S t a nding issu e d by the Flo r i d a Secr e t a ry of S tate as to
Se l l e r ’ s c o r po r a t e s t an d i n g ;
(i ) Se l l e r ’ s b r o k e r ’ s c on d i t i o n al l i en w a i v er o r o t h e r a g r e e m ent ( co n d i ti o n a l o n l y as
( j ) Can c el l a t ion, re l e a s e , or pay o f f of a ny Se ct ion 5. 9 ( b) P e r m itt e d L i e n s ;
( k ) N oti c e( s ) o f A ssi g n m ent o r Tra n sf e r o f A ss e ts to be A cqui r ed t o any ten a nts of the Mi n er a l E s t a tes, R o y a lt y and O ther Mi n e r al I nter es ts; and
(l) A ll o t her e xec u ted d ocu m ents, i ns t ru m ents, a n d no t i c es re q u i red t o be d e li v er e d by Sell e r t o B u y er a t C l o s i ng pursua n t to t his A g ree m ent, and in f orm rea s ona b ly acc e pt a ble to t h e Pa r ty being re q ue s ted to e x ec u te t he sa m e.
15 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
13.2 B u y er D e l i v e r a b l es at C l os i n g . A t C l o s i n g , B u y er s h a l l d e l i v e r , or c a u s e t o be d e l i v e r ed, t o S e ll e r :
(a) B u y e r ’ s d u ly ex e cu t ed c o unt e rp a rt s i g natu r e p a g e t o t h e C lo s ing S t a te m ent des c ri b ed i n Se c ti o n 13. 1 ( a ) abo v e;
(b) B u y e r ’ s duly ex e cu t ed c ount e rp a rt si g na t ure pa g e to t he A s si g n m ent a n d
A ss u m p ti on A g r ee m en t ( s );
(c) the P u rc h ase P r ice as de s c r ibed in A r t i c le 4 h e reof l e s s t h e a m ount o f the I niti a l Pay m ent, the Ext e ns i on P a y m ent and the Second Pa y m ent, w hich I niti a l Pa y m e nt, Ext e ns i on Pay m ent and Se c ond Pa y m ent sh a ll be d e li v er e d to S e l l e r at Cl osing by Escrow A g en t ;
(d) C er t i f ic a tes o f G ood S ta n d i ng issu e d by t h e Lo u i s ia n a and Fl o ri d a S e c r et a r i es of
S t a t e as t o B u y e r ’ s co r po r a t e s t and i n g ;
(e) A C er t i f i c ate of an o f fi ce r o f B u y er con f ir m ing t h at the r e pr e se n t a tio n s, and w arr a n t ies o f B u y er s et fo rt h in Ar t i c l e 6 h e re o f b e ing t rue a s of C lo s in g ;
(f) A reso l u t ion or c o nse n t of m e m bers from B u y er (to g ether w ith c o pi e s or e x cer p t s from B u y e r ’ s C ert i fi c a t e of For m ation, o p er a t i ng a g ree m ent or other o r g ani z at i on a l docu m ents ) : ( i) e v idenc i ng the aut h o r ity of B u y er and i t s Ma n a g ers to au t ho r i z e the t ra n sa c ti o ns con t e m plated by th i s A g ree m ent, and, ( i i) d e s i g nating the l i m ited l ia b i li ty co m pany repr e se n ta t i v e(s) and t i t l e (s) t he r e o f auth o ri z ed to s i g n the C lo s i ng D ocu m ents for a nd on b eha l f o f t h e B u y er;
( g ) A ny 1031 e x chan g e d o cu m ents r eas o na b le req u i r ed by any Pa r ty or i ts exc h an g e a g ent, a c co m m odator o r e x chan g e co m pan y ;
( h) B u y e r ’ s b r o k e r ’ s con d i ti o n al l i en w a i v er o r o t h e r a g r e e m ent ( con d i t i o n al o n l y as
(i) N oti c e( s ) o f A ssi g n m ent o r T r an s fer of A s s ets t o be A cqui r ed to any te n an t s o f the Mi n er a l E s t a tes, R o y a lt y and O ther Mi n e r al I nter es ts; and,
( j ) A l l oth e r e x e c u t ed d o c u m en ts , in s t r u m en ts , a n d not i c es r e q ui r ed to be d e li v e r e d by Bu y er t o Sel l e r a t C l o s ing pu rs u a n t t o th i s A g r eemen t , and i n fo r m r ea s on a b l y acc e p t a b l e t o t h e Par t y b ei ng r e q u e s t ed t o e x ec u t e the s a m e.
13.3 Se l l er D e l i v e r ab l es a f t er Cl o si n g . A f t er C l o s i n g , Se l l e r s h a l l h o l d and d e l i v er t o B u y e r , as r ec e i v ed f r om ti m e t o ti m e, any ca s h or o t h er m on et a r y con si d e r a t i on t h at i t m ay r ece i v e i n r e s p e c t t o accou n t s r e c e i v ab l e or l ea s e p a y m en t s r e l a ti ng t o t he A ss e t s t o be A c qu i r ed c on v e y ed t o B u y er at C l o si ng and a r i si ng f r om and a f t er t he C l o s i ng D a t e . S e l l er s h a l l r e m i t any s u c h p ay m en t s r e c e i v ed t o B u y er i n ca s h o r c a s h e qu i v a l en t s or o t h e r m on et a r y co n si d e r a t i on w it h i n t h i rt y ( 3 0 ) d a y s o f r e ce i p t .
13.4 B u y er D e li v e r a b l e s a f t e r Cl o si n g . A f t er Cl o s i n g , B u y er s h a l l h o l d and d e l i v er t o S e l l e r , a s r ec e i v ed f r om ti m e t o ti m e, any ca s h or o t h er m on et a r y con si d e r a t i on t h at i t m ay r ece i v e i n r e s p e c t t o accou n t s r e c e i v ab l e or l ea s e p a y m en t s r e l a ti ng t o t he A ss e t s t o be A c qu i r ed c on v e y ed t o B u y er at C l o si ng and a t t r i b u t a b l e t o t he p e ri od p ri o r t o t he Cl o s i ng D a t e. B u y er s h a l l r e m i t t h e p ay m en t s r e c e i v ed wi t h r e s p ect t o t he acc o un t s t o S e l l er i n c a s h o r c a s h eq u i v a l e n t s w it h i n t h i r t y ( 30) d a y s of r ec e i p t . B u y er s h a l l act as a con d u i t o n l y wi t h r e s p ect t o t he t r an s m is s i on of a ny acc o un t s r e c e i v ab l e co l l e c t ed by B u y er a n d tr a n s m itt e d t o S e ll e r . B u y er s h a l l n o t g u ar a n t ee p a y m ent of t he a c cou n t s r e c e i v ab l e and s h a l l n o t be r eq u ir e d t o i n s t it u t e a ny l e g al p r o c e ed i n g s r e l a t ed t o u n p ai d acc o un t s r e c e i v ab l e.
16 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
C O STS AND EX P ENSES
Se l l er s h a l l p ay a l l f e es an d expe n s es i n c u r r ed by i t i n conn e c t i on w it h t he t r an s ac t i ons p r o v i d e d f or h e r eund e r , i n c l ud i ng t he f e e s a n d ex p en s es o f it s c o un s el and a c cou n t a n ts ; and B u y er s h a l l p ay a l l f ees and exp e n s es i n c u r r ed by i t i n conn e c t i on wi t h t h e t r a n s ac t i o n s p r o v i d e d f or h e r eu nd e r , i n c l u d i ng t he f ees and e x p e n s es o f it s co u n s e l and a c cou n t a n ts . E s c r ow A g en t ’ s n o r m al and cu s t o m a r y f ees f o r s e r v i ng as t he c l o s i ng a g ent and e s c r ow ho l d e r a r e t o be d i v i d e d equ a l l y b et w e e n Se l l e r a nd B u y e r , and p r o v i d e d s u c h E s c r ow A g ent f e e s s h a l l not e x c e ed a t o t al of F I V E T HOU S AN D A N D NO / 100 DO LL AR S ( $5,000 . 00) w i t hout t he w r i tt e n a p p r o v al of B u y er a n d Se l l e r , p r o v i d e d ho w e v er t h at i f B u y e r ’ s coun s el i s s e r v i ng as E s c r ow A g en t , t h e r e s h a l l b e no e s c r o w a g ent f ee c h a r g ed t o t he Pa r ti e s . A ny F l o r i d a do c u m en t a r y s t a m p tr an s f e r t a x e s d ue on t he t r an s f er of t h e A s s e t s t o b e A cq u i r ed s h a l l be s o l e l y t h e ob li g a t i on o f B u y e r . B u y er w il l p ay a l l c o st s o f t i t l e i n s u r a n c e, r ec o r d i ng f ee s , e x ci s e t a x e s , s a l es t ax e s and s u r v ey co s ts , i f an y . S e l l er wi l l p a y a l l i n c o m e t ax es , Fe d e r a l , s t a t e o r l o ca l , i m po s ed on S e l l er i n conne c t i on wi t h t he s a l e a nd t r an s f e r of t he A ss e t s t o be A cq u i r ed. B u y er s h a l l p a y a l l t a x es i m po s ed i n conne c t i on wi t h r ec o r d i ng any m o rt g a g e or p r o m iss o r y no t e ex e cu t ed by B u y er t o s ec u r e a ny acqu i s i ti o n fi n a n c i ng f or t he A s s e t s t o be A cq u ir e d.
ART I CLE 15
P R O R A T I O N S
O il , Gas and Mi n e r a l Le as es p a y m en ts , r o y a lt y p a ymen ts , d r i l l i ng d el ay p a y m en ts , and any o t h er r e v enue and e x p e n s e of t h e A ss e t s t o be Acq u ir ed f or the calend a r y ear i n wh i c h the C l o s i ng o c cu r s s h all be a d j u s ted and p r ora t e d a n d p ai d a s of t h e C l o s i ng Da t e and b a s ed on t he ti m e s u c h p a y m ent was ea r n e d or exp e n s e a c c r u ed. All real p r op e rt y t ax e s , g en er a l or s p e c i a l , and a l l o t h e r publ i c or g o v e r n m en t al ch a r g es or a ss e s s m en t s a g a i n s t t he A s s ets t o be A c qui r ed which are or m ay be p a y ab l e on an a n nu a l o r m o r e fr e qu e n t b a s i s ( h e r e i n col l e c ti v e l y , t he “ R e a l E st a t e T a x es and A ss es sm e n ts ” ) , and all o t h er cu st o m a r i l y p r ora t a b l e i tems a r e t o be a d j u s t ed a nd a p po r t i on e d as o f t he C l o s i ng Da t e. Re a l E s ta t e T ax e s and A s s e ss m en t s p r o r a ti o ns s h a l l be b a s ed on l a t e s t a v a i lable tax b i ll as o f t he C lo si ng Date and be b a s ed on an a ss u m ed t hree hu n d r ed s i x t y - fi v e ( 365) d a y ca l e nd a r y ear p r orat i on p e ri od (and ap p l y i ng t he m ax i m u m d is count f o r e a r ly p a y m en t) . Bu y er and Sel l er s h all a g r ee dur i ng t he In s p e c ti o n Per i od on t h e m e t hod t o b e u s e d f o r an y o t h e r ad j u st m ent a n d a p po r t i on m ent o f the it e m s of re v enue and ex p en s e d es c ri b ed h e r e i n for t he a p p l ica b l e p r orat i on p er i ods w it h r e s p e c t t h ere t o b e ing a l lo c a t ed o n t h e C l o si ng S t a t e m ent f or t he t r an s a c t ion, and Bu y er and S el l er s h a ll be ch a r g ed o r c r e d it ed , as a p p r o p r iate, on t he C l o s ing S t a t e m ent f o r prora t ions a s p r o v i d ed h e r e i n. T he r e v enue and e x p e n s es f or t he d ay of C l o s i ng s h a ll b e long t o and be at t r i buted t o Bu y e r . A l l r e v enue and exp e n s es f or t h e p e ri od p ri o r t o t h e d a y of C l o s ing s h a ll b e l ong t o S e l le r .
ART I CLE 16
B RO K E R O R F I NDE R
Se l l er r ep r e s e n t s a nd w a r r a n t s t o B u y er t h a t Se l l er h as con t r a c t ed f o r t h e s e r v i ces of L AN T AN A E N E RG Y AD V I S OR S and S UN T RU ST RO B I N S O N HU M P HR EY as a d v is o r s and b r o k e r s i n conne c t i on w it h t he t r a n s a c t i ons d e s c r i b e d i n t h i s A g r ee m ent w it h r e s p e c t t o t he s a l e of t he A ss e t s t o be A cqu i r ed ( t he “ S e ll e r ’ s A dv is o r s / B r o k er s ” ) . S e ll e r i s s o l e l y r e s p o n s i b l e f or t he p a y m ent of any f e e s , co m m issi on s , e x p e n s es or o t h e r c h a r g es m ade by Se l l e r ’ s A d v is o r s / B r o k e r s , and Se l l er a g r e e s t o i nd e m n if y , d ef end a nd ho l d B u y er h ar m l e s s w it h r e s p e ct t o any Se ll e r ’ s b r o k er or ad v is o r s ( i n c l u d i ng Se l l e r ’ s A d v is o r s / B r o k e r s ) c l a i m s f o r f e e s o r co mm issi ons due i n c o nn e c t i on wi t h t he t r a n s a c ti o ns e v i d e n c ed by t h i s A g r ee m en t . B u y er r e p r e s en t s and w a r r an t s t o S e ll e r t h a t t h e r e a r e no B u y e r ’ s b r o k e r a g e or ad v is o r s f ees o r co mm i s si o n s due f r om B u y er i n connec t i on w it h t he tr a n s a c t i o ns co n t e m p l a t e d by t h i s A g r ee m ent o t h e r t h a n t h o s e due t o CBR E GROU P , I NC . ( “ B uy e r ’ s B r ok e r s ” ) , and B u y er a g r ees t o
17 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
i nd e m n if y , d ef end a nd ho l d Se ll e r h a r m l e s s w it h r e s p e ct t o any B u y e r ’ s b r o k er or ad v is o r s ( i n c l ud i ng B u y e r ’ s B r o k e r s ) c l a i m s f or f ees o r c o m m issi ons d u e i n conn e c t i on w it h t he tr an s a c t i ons e v i d e n c ed by t h i s A g r ee m ent o t h er t h a n t he B u y e r ’ s Br o k e rs ’ F ee d e fi n e d h e r e i n. U pon t he C l o si ng of t he tr a n s a c t i o n s con t e m p l a t ed by t h i s A g r e e m en t , Se ll e r s h a l l b e r e s pon s i b l e t o p a y B u y e r ’ s B r o k e r s a b r o k e r a g e f e e equ a l i ng t w o p e r ce n t ( 2 % ) of t he P u r ch a s e P r i c e ( “ B uy e r ’ s B r ok e r s ’ F e e ” ) , and Se l l e r s h a l l h a v e no f u r t h e r ob l i g a ti o n t o B u y e r ’ s B r o k e r s f or any r ea s on, and f u r t h e r p r o v i d ed no f ee or co m m issi on s h a l l b e due t o B u y e r ’ s B r o k e r s un l e s s s u ch t r a n s a c ti o ns c l o s e pu rs u ant t o t h i s A g r e e m en t . For t h e pu r po s e o f f u l l d is c l o s u r e, H e a t h A . R u s h i n g , a p r i n c i p a l of B u y e r , i s a b r o k er i n t he S t a t e of F l o ri d a b u t i s p a r ti c i p a t i ng i n t h i s t r an s a c t i on i n t h e s o l e c ap a c it y of p r i n c i p a l a nd s o l e m e m b e r of B u y e r . H e h a s n o t r end e r ed a ny b r o k e r a g e s e r v i ces t o any Pa rt y and d o es n o t s e ek and w il l n ot b e p a i d any f ee a s a b r o k er o r ad v is o r . N o Pa rt y i s l oo k i ng t o H e a t h A . R u s h i ng f o r any b r o k e r a g e s e r v i ce s .
ART I CLE 17
S U R V I V A L
A l l r e p r e s e n t at i o n s , wa r rant i e s , co v en a n ts , s t i pulat i on s , ce r t i f i c a t i on s , ind e m n i t i es and a g r ee m ents con t a i n e d h e r e i n or i n any do c u m ent d e l i v e r ed pur s u a nt h e r e t o s h a ll s u r v i v e t h e e x e cut i on and d e l i v e r y of t his A g r ee m ent and, s u b j e c t t o Ar ti c l e 9 , s h a ll s u r v i v e the Clo s ing Da t e f o r a p e r i o d of t w e l v e (12) m on t hs f ol l ow i ng t he Clo s ing Da t e. Bu y er and Sel l er a g r e e t o m a i n t a i n c onf i d e n t ial i ty on a l l a s p e c t s o f t h e tr a n s a c t ion c o n t e m p l a t ed by t h i s A g r ee m en t , p r o v i d ed t h at Bu y er and S el l e r m a y s h ar e i nfo r m a ti o n r ela t e d t o t his tr a n s a ct i on w it h t h e i r re s p e ct i v e co u n s e l , e m p l o y ee s , co n t ra c t or s , con s u lt a nt s , a ccou n t a n t s , t i tl e co m p a nie s , l e nd e rs , Bu y e r ’ s Ad v is o r s / B r o k e r s and f i n a n cial ad v is o rs , who are ad v is ed o f t he conf i d e n t ial n a t ure o f t his t r an s act i on and th e ir obl i g at i on t o m a i n t a i n p r ior t o Clo si ng the s a m e s tand a r d of c o nf i d e n t ial it y as Bu y er and S e l le r , and S el l er s h all h a v e t he r i g ht to rep o r t or d is c l o s e any in f o r m a ti on r eq u ir e d und e r any l e g al o b li g at i on a s a s ub s i dia r y o f a pu b l ic l y t rad e d co m p a ny and t o i ss ue a pre s s r elea s e a s d e s i r ed wi t h r e s p ect t o t h e Clo s i ng of t he t r a n s a c ti o n . All o t h e r Bu y er c om m un i ca ti o n s t o t hird p ar t i e s a n d i n f o r m a ti on r eq u es ts o f Bu y er pr i or t o cl o si ng m u s t be p r e s e n t ed t o and a p p r o v ed by S e l le r , w it h s u c h c on s e n t not to b e unrea s o n a b l y w it h h e l d , co nd i t i o n ed o r d e n i ed. Any t h ir d p a rt y pro v i d e d s u c h i n f o r m a ti on s h a ll be in f o r m ed by Bu y er of the c o n fi d ent i a l n a t u r e of t h i s t r an s act i on and of th e ir ob li g at i on t o m a i n t a i n p ri o r t o C l o s i ng t he s a m e st an da r d of c onf i d e n t ial it y as Bu y e r . S e l ler is a s u b s i dia r y of a pu b l ic l y t r ad e d c o m p any and S e l ler wi l l m a k e r ea s on a b l e e f for t s t o k eep m a tt ers rela t e d t o t h is A g r ee m ent con f id e n t ial p o st - C l o si n g , p r o v i d e d how ev er t h a t S e ll e r s h all h a v e the r i g ht t o d i s c l o s e a ny and a l l d e t a il s re l a t ed to t h i s A g r ee m ent and t he t r a ns act i on d es c r i b e d h e re i n n e ce s s a r y t o co m p l y w it h Se l le r ’ s pre s s r e l e a s e, SEC f i li n g , pu b l ic r e por ti ng r eq u ir e m en t s , and o t h er l e g al ob li g at i o n s . Bu y er m ay d is c l o s e any con fi d ent i a l i n f o r m a ti on i n it s d is c r e t ion a f ter C l o s i n g . E it h er Pa rt y m a y d is c l o s e t his tr a n s a c t ion a n d t h e do c u m en t s a nd in f o r m a ti on p er t aining t h er e t o to a t hi r d p ar t y i n co m p li an c e wi t h la w .
ART I CLE 18
I N S TRU M ENT S O F F U R T H E R A SS URANC E
Each o f t he P a r t i e s h e r e t o ag r ee s , up o n t h e r equ e s t of t he o t h e r Pa r t y h er e t o, f r om ti m e t o ti m e t o ex e c u t e and d e l i v er t o s u ch o t h e r Pa r t y a l l i n s t r u m en t s and do c u m en t s o f f u r t h e r a ss u r an c e o r o t h e r wi s e as s h a l l be r ea s o n a b l e un d er t he c i r cu m st an c e s , a n d t o do any and a l l s u ch a c t s and t h i n g s as m ay r ea s on a b l y be r eq u ir e d t o c a r r y out t h e ob li g a t i o n s o f s u c h r e qu e s t ed P a rt y h e r e u nd e r , t o co ns u m m a t e t he t r an s a c ti o n s p r o v i d e d f or h e r e i n a n d co r r e c t any m an if e s t e r r o r s on t he Cl o s i ng S t a t e m en t , p r o v i d e d a ny s u c h r equ e s t ed do c u m en t a t i on s h a l l be i n a f o r m r ea s on a b l y accep t a b l e t o t h e Pa r t y b ei ng a s k ed t o e x ec u t e t h e s a m e, w it h s u c h r eq u e s t t o not be u n r e a s o n ab l y d e n i ed, c ond it i on e d o r d e l a y ed. W it h out li m i t i ng t he f o r e g o i n g , t he P a r ti e s s p e c i fi c a l l y a g r ee t h a t s ho u l d B uy er e st a b l i s h t o S e l l e r ’ s r ea s on a b l e s a t i s f ac t i on t h a t Se l l er or C on s o l i d a t ed T o m o k a ho l ds t i tl e t o s e v e r ed o il , g as a n d m i n e r al r i g h t s e s t a t e i n t e r e s t s (i n c l u d i ng but not li m it ed t o a l l f u l l or f r ac t i o n al m i n er a l e s t a t e i n t e r e st s , r o y a lt y i n t e r e s t s , en t r y and exp l o r a t i o n ri g h t s o r s i m il ar ri g h t s ) l o ca t e d i n t he A pp l i ca b l e C oun t i es b ut t h a t s u c h i n t e r e s t w a s n o t con v e y ed t o
18 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
Se l l er by t he W a rr a n t y D eeds l i s t ed on Sched u l es A- 1 t h r ough A - 20 , Se l l e r w i l l u s e i t s b e s t g ood f a i t h e f f o rt s f o ll o w i ng C l o s i ng t o ob t a i n a con v e y an c e o f t he s a m e f r om C on s o li d a t ed - T o m o k a t o Se l l e r . S e ll e r s h a l l t h en con v ey t he s a m e t o B u y er con si s t e n t w it h t he f o r m of do c u m en t a ti on ca l l ed f or i n t h i s A g r ee m ent w it h r e s p e c t t o s u c h si m il a r S e l l er a s s e t s t o b e c on v e y ed h er e i n, i t b ei ng t he i n t ent of t h e Pa r t i es t h a t S e ll e r con v ey t o B u y er a l l s u c h s e v e r e d m i n er al i n t e r e s t s h e l d by S e l l er and C on s o li d a t ed- T o m o k a.
ART I CLE 19
B U Y E R I N SP ECT I O N A N D B U Y E R I NDE M N I T Y AN D A S I S W H ER E I S S AL E D I S CL O S UR E
19.1 B u y er I n s p e c ti on.
(a) B u y er sha l l h a v e the r i g ht to a cce s s the d ata room at any ti m e pri o r to Cl os i n g , bar r ing m echani c al, t e ch n i cal or ot h er shu t do w n be y ond S e ll e r ’ s r e aso n ab l e c o ntr o l. U p o n a t l ea s t th r ee (3) B u s ine s s D a y s’ pri o r n ot i ce to S e l l er ( w h ich m ay be e m ail), a t ti m es th a t a r e m utua l ly con v enient t o B u y er and S e l ler du r ing r e g ular b us i ne s s ho u rs, B uy er sh a ll ha v e a c cess a t S el l e r ’ s b u si n ess o f f ice t o Sel l e r ’ s boo k s and r e cor d s re g ar d ing the A s se t s t o b e A cqu i red and the la n ds su b j e ct to the M i ne r al Est a tes, R o y alty a n d O t he r M in e r a l I nter e s t s d u ring the p e ri o d c o m m encing on t h e I nspec t ion Pe r iod C o m m enc e m ent D ate (as d efi n ed b e lo w ) and t er m ina t ing at 5:00 p. m . Eastern T i m e on the date w hich i s one hun d red a nd f i f ty (150) da y s f rom the I nspect i on Pe r iod C o mm enc e m ent D a te ( the “ I n i t i a l I nspe c ti on P e r i o d ”), u n l e ss th i s A g ree m ent is ea r l i e r ter m in a ted p u rsua n t to t he ter m s here o f, f o r t h e purpo s e of c ondu c t i ng its insp e c t ions a nd an a l y ses of the A s se t s to b e A c q uir e d in c lu d in g , w itho u t li m it a ti o n, a l l e n g inee r ing and o t her exa m ina t io n s, z oning con f ir m ati o ns, fi n an c i al r e v iew and o th e r d u e di l i g ence a c t i v it i es, as w e ll as o b ta i ning a Ph a se I Environ m ent a l R ep o rt w ith r es pect to the lan d s su b j e ct to t h e M in e ral E s t at e s, R oy alty and O th e r M ine r al I nte r e s ts; pro v id e d, ho w e ve r , at S e l l e r ’ s op t ion, a rep r es e nt a ti v e of S e ll e r c h osen by Sell e r sh a ll a c co m pany B u y e r , its consu l ta n ts and a g ents, and Se l l e r sha l l u s e r e aso n ab l e e f fo rt s to m a k e such re p re s en t a t i v e a v aila b le u p on r eas o n a ble p ri o r n o ti c e. B u y er sha l l ha v e t h e r i g ht to p r o v ide a N o t ice o f E x ten s i on of I nspec t ion P e r i od t o Se l ler (“ E x t en s i on o f I nspe c ti on Per i od N o ti ce ”) p r ior to the e xp i r a tion of the I niti a l I nspect i on Period a nd ex t end t h e I nspection P e ri o d f o r an a d di t ion a l t h i r ty (30) d a y s fr o m the last day of t he I niti a l I nspec t ion P e riod (t h e “ E x t ended I ns p ec t i on Per i o d ”), pro v id e d B u y er si m ulta n eou s ly fu r ni s hed to E s crow A g ent t h e Exten s ion P a y m ent as set fo r th i n Se c ti o n 4.2 ( a). D u ring the I ni t ial I nspecti o n Peri o d or the E xt e nd e d I nspection P e r iod, if any ( co l le c ti v el y , t h e “ I n s pe c t i o n P e r i o d ”), B u y er sh a l l n ot be en ti tl e d to do a ny in v asi v e t e s ting d u ring t h e I nspect i on P e r iod, in c l u ding but not l i m ited to a Phase I I En v iron m ent a l R epor t , wi tho u t Se l le r ’ s p r ior w r i tt e n co n se n t, s u ch S el l e r ’ s co n se n t to be g i v en or wi thh e ld in S e l l e r ’ s sole, re a son a ble d i s cr e t i on. D uring the I nspec t ion P e r iod, B u y er s h a l l a l so ha v e the r i g ht to re v iew and insp e ct a t S e l l e r ’ s b us i ness o f f ice co p i e s o f a l l f i n an c ial s t a te m ents, re p o r ts, l ea ses, sur v e y s, a n d o th e r docu m ents and i n for m a t ion re g arding oper a t i ons and o w ners h ip of t he A ss e ts t o be A cqu i red ( e xc l uding Sel l e r ’ s a tt o rney c l ie n t co mm unicati o ns o r w ork prod u ct). B u y er sh a ll k eep the r e su l ts o f su c h i n spe c t i o n s con f ide n t i al a nd sh a ll no t di s cl o se s u ch r es u lts e xcept B u y e r ’ s cou n s e l, e m plo y ees, cont r ac t ors, cons u lt a n t s, a cco u nt a nt s , t i tle co m pan i es, l e nde r s, B uy e r ’ s A d v isors/ B ro k ers and f ina n ci a l ad v is o rs, w h o are ad v ised of t h e c o n f ide n ti a l n at u re of t h is t r ans a c t i o n and th e ir o b li g a t ion to m ai n ta i n p r i o r t o C l o s i ng the s a m e stan d ard of con f i d en t ia l ity as B u y e r . The term “ I nsp e c t i on P e r i od C o m m en c e m ent D a t e ” sh a l l m ean the E f f ec t i v e D ate of th i s A g ree m ent.
(b) B u y er sha l l ha v e the r i g ht to or d er f rom its a g ents, c ont r ac t or s , coun s el o r from th i rd p a rty ab s tr a ct o rs o r l and m en a rep o rt o r r e po rt s as t o the con d i t ion o f t h e t i t l e p e rt a i n ing to t h e A sse t s to b e A c qu i red ( co ll ec t i v el y , the “ T i t l e R ep o r t ” w h e th e r o n e o r m or e ), o r , if so de s i r ed by B u y e r , a pre l i m inary A L T A ( 2006 for m , as ad o pt e d in F lo r id a ) o w ne r ’ s t i t l e i ns uran c e co mm i t m ent or co m m it m ents co v ering t h e Mi n e r al E st a t e s, R o y a l ty and O t h er M i ne r al I nte r e s t s in an a m ount of the
19 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
Pu r ch a s e P ri c e and s u b j e c t t o t he P e r m it t ed Ex c e p ti ons and o t h e r e x ce p ti o ns t o or ex c l u s i ons fr om co v e r a g e, and s e t ti ng f o rt h t he Sc h ed u l e A i n f o r m a ti on as t o t i t l e, d e s c r i p ti o n s , p r opo s ed i n s u r ed i n t e r e s t s and o t h e r m a tt e rs , s e t t i ng f o rt h on S c h e d u l e B - 1 t he r equ i r e m en t s and s e t ti ng f o r t h on Sche d u l e B - 2 t he p r opo s ed e x ce p ti o ns a s ap p li c ab l e ( c o l l e c ti v e l y t h e “ T i tl e C o m m i t m en t ” w h e t h er one or m o r e ) . T h e T i t l e R epo r t and t he T it l e C o mm i t m en t , i f o r d e r e d, s h a l l i n c l ude l e g i b l e co p i es of any and a l l i n s t r u m en t s r e f e r r ed t o i n t he T i t l e R e po r t o r t he T i t l e C o m m it m ent as con s t i t u ti ng ex c e p ti o n s t o or r eq u ir e m en t s p er t a i n i ng t o t he t i t l e of t h e M i n e r a l E s t a t e s , R o y a l t y and O t h e r M i n e r al I n t e r e s t s or o t h er A ss e t s t o b e A cqu i r ed ( t he “ T i t l e D o c u m en t s ” ) , a nd i f o r d e r ed, B u y er s h a l l d e l i v er a c o py of t he T i tl e R ep o rt , T itl e C o m m i t m en t , and t he T i t l e D o c u m en t s t o Se l l e r p r o m p tl y upon r e c e i p t . A l l c o s t s and exp e n s es f or s u c h T i t l e R ep o r t and T i tl e C o mm i t m en t , i n c l u d i ng but not li m it ed t o any s ea r ch co s ts , any p r e m i u m co sts , a n d any po li cy and co v e r a g e c o sts , i n c l u d i ng but not li m i t ed t o any en d o r s e m ent c o sts , i s s u e d i n c onn e c t i on t h e r e wi t h s h a l l be p a i d by B u y er and i t s h a l l be B u y e r ’ s o b li g a t i on t o ob t a i n a ny s u c h d e s i r ed T i tl e R e po r t or T i tl e C o m m it m en t .
(c) O n or be f ore t w e n ty - one (21) B u si n ess D a y s p r i o r to the e x p i ra t ion o f t he I nspection P e r i od, B u y er s ha l l no t ify Se l l e r ( “ B u y e r ’ s T i t l e N o ti c e ”) of any o b je c ti o ns wi th co p ies of re l e v ant d ocu m ents ( o th e r t han P e r m itt e d E x ce p tio n s des c ri b ed in c l aus e s ( D ) o r ( G ) of t h e d e f in i t i on o f Per m itt e d Exce p t ions b el o w ) w hich B u y er m ay ha v e to t h e T i tle R epo r t or T i tl e C o m m i t m ent. I f B u y er o b j e c ts to any m atters l i s t e d on t h e T i t l e R ep o rt or T i tle C o m m it m ent (oth e r th a n Per m it t ed Ex c ep t io n s des c ri b ed i n c l au s es ( D ) or ( G ) of t h e d e fi n i t ion o f P e r m itted Ex c ep t ions b e lo w ), Sel l er m a y , but sh a ll n o t be ob l i g ated to, cu r e t he s a m e, except th a t S e l ler s h all ob t ain t h e r e l e ase ( a t C los i n g ) of a ny exi s ting m ort g a g e and ot h er m onet a ry l i ens ca u sed by Se l l e r o r ot h er w ise of r ec o rd a f f ec ti ng the t it le w h ich m ay be r e l e ased by pay m ent of m oney fr o m Selle r ’ s C lo s ing proc e eds (c o l l ec t i v el y , “ M on e t a r y L i e n s ”). I f Sel l er d e l i v ers wr i t ten n o t i ce to B u y er ( “ S e ll e r ’ s T i t l e N o ti c e ”) on or b e fo r e t w o (2) B u s in e ss D a y s p r i o r to t h e ex p ir a t i on of the I nspec t ion P e r i od ( in c lud i ng during any Exten d ed I nspec t ion P e rio d ) t h at S e l ler is w il l ing to re m o v e a n y excep t ions o b je c ted t o by B u y e r , then Sel l er s h a l l be o bli g a t ed to re m o v e such exce p ti o ns o n o r p r i o r t o t h e C lo s ing and such e x ce p t i ons s h a l l n o t b e o b je c t ions to t i tle. I f Sel l er does n o t pro v ide B u y er w i t h Se l le r ’ s T i t l e N ot i ce or S e l le r ’ s T i t l e N oti c e does n ot p ro v ide f or Se l le r ’ s a g ree m ent t o re m o v e all exce p t ions pr op erly o b je c ted to by B u y e r , then B u y er m ay ter m inate th i s A g ree m ent p ri o r to the ex p i r a t ion of the I nspection P e r i od or w ai v e B u y e r ’ s o b je c tion to any exce p ti o ns Se l ler h as not a g r ee d to r e m o v e w ith such e x ce p t ions b eco m ing Per m itted E xcep t io n s. The t erm “ Pe r m it t ed E x cep t i ons ” sh a ll m ean ( A ) l ie n s for r e al e s t ate t a xes, a s se s s m ents a nd si m il a r cha r g es not y et du e and pa y ab l e; ( B ) la w s app l ica b le t o the M ine r al Est a tes, R o y alty a nd O th e r M ine r al I ntere s ts or o ther t i t le to t h e A s se t s to be A cqui r ed; ( C ) any m atte r s conse n ted to in wr i t ing by B u y er; ( D ) e a se m ents, r i g hts of w a y , ser v i t ude s , per m its, re s t r i c ti o ns a n d o t her m att e rs of rec o rd u n l es s t i m ely ob j e c t ed t o by B u y er dur i ng the B u y e r ’ s t i tle re v iew pe r iod p ro v i ded for h er e i n ; (E) the s tand a rd p r i n ted e x ce p ti on s in c luded in t h e T i t le C o m m i t m ent (if o rd e re d ) p ro v ided t h ose th a t m ay be del e ted by a f f ida v it o f t h e S e ll e r wi ll be p re s u m ed to be d el e ted a t C lo s ing i f s uch T i t le C o m m it m ent is obt a ined by B u y er and a t i tle p o l i cy is i ssu e d at C los i n g ; ( F ) l iens or en c u m bran c es cau s ed by t he a c t i o ns of, or on b eh a lf of, B u y er b u t n ot th o se c au s ed by the a c t i ons o f S e l l e r ; ( G ) any m atter app e a r ing in t h e T i t le R epo r t o r the T i t le C o m m i t m ent ( if o rd e re d ) or in t h e Sur v e y s (if o r de r e d) to w h i ch B u y er does n o t ti m ely ob j e ct, o r to w hi c h B u y er w ai v es, pursu a nt to t h is S e c t ion 19 . 1( c ); ( H ) Per m itted L ie n s pro v i d ed t hat S e l l er p ro v ides E s crow A g ent w ith ap p ro p r i a t e docu m ents to ter m in a te s u c h l i ens at t h e C l o sing o t her than ta x es n ot due and p a y able and wi th such t a xes to be p r or a te d ; a nd ( I ) tho s e m atte r s, if an y , id e n t i f ied as A d d i t ion a l P e r m it t ed E x cep t ions on the a tt a ch e d Schedu l e D , if any ( the “ A dd i ti on a l Pe r m i tt ed E x cep ti ons , ” w h i ch to g e t her w ith t h e P er m it t ed Excep t io n s l i s ted abo v e sh a ll c o l le c ti v ely be re f e r red to her e in a s t he “ Per m i t t ed E x cep ti ons ” ).
(d) B u y er sh a ll ha v e t h e r i g ht, in its s o le di s cr e t ion, to t e r m inate t his A g ree m ent f o r any rea s on ( or no rea s on) w hats o e v er by g i v ing w rit t en n o ti c e th e re o f t o S e l l er o n or be f ore t h e e x p i ra t i o n of the I nspe c ti o n P e ri o d. I n the e v ent t h at B u y er e x er c i ses i t s ri g ht to t e r m inate t h i s A g ree m ent i n a t i m ely m anner in a c cor d ance wi th Se c tion 12. 1 ( b ) o f th i s A g ree m ent d u r ing the t erm of the I nspec t ion P e r iod,
20 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
t h e n B u y er s h a l l p r o m p tl y r e t u r n t o S e l l er a l l c op i es of s u r v e y s , en v ir on m en t al r e p o rt s , i n s p e c ti o n r ep o r t s , d at a, a n d o t h e r w o r k p r od u ct p r o v i d e d by S e ll e r t o B u y er or o b t a i n e d by B u y er w it h r e s p e c t t o B u y e r ’ s due d i li g en c e r e v i ew o f t h e A ss e t s t o b e A cq u i r ed wit hout any r e p r e s e n t a ti on or w a rr a n t y of any k i nd. I f B u y er e l e c t s t o p r o ceed wi t h t he tr a n s a c t i on c a l l ed f o r i n t h i s A g r ee m en t , t h e n p ri o r t o t h e ex p i r a t i on of t he I n s p e c t i on P e r i od B u y er s h a l l d e li v er t o S e ll e r w ri t t en n o t i ce n o t if y i ng S e ll e r t h a t B u y er e l e c t s t o p r o c e ed wi t h t r an s a c ti on c a l l ed f o r i n t h i s A g r ee m ent ( t he “ G o F o r w a r d N o t i c e ” ) . I n t he e v ent B u y er n e i t h e r t e r m i n at e s t h i s A g r ee m ent nor p r o v i d e s a G o Fo r w a r d N o t i ce p r i o r t o t he e x p i r a t i on o f t h e I n s p e c ti on P e r i od, t h e n B uy er s h a l l be d e e m ed t o h a v e d e l i v e r ed a G o Fo r w a r d N o t i ce a s of t he l a s t d ay of t he I n s p e c t i on P e r i od.
(e) B u y er and i t s a g en t s and r e pre s en t a t i v es s h a l l n o t p e r m it any lie n s to a t t ach to t h e Min e r a l E s ta t es, R o y a l ty and O th e r M i ne r al I nter e s t s sol e ly and d i re c tly by rea s on of t h e ex e r c ise o f it s ri g hts h er e unde r , and sh a ll re s to r e t h e sa m e to s ub s t a nt i a l ly the sa m e con d i t ion in w h i ch t h e sa m e w e r e found b ef o re a ny of i ts ins p ec t ions or te s ts w e re u nde rt a k en.
19.2 B u y er I nd e m n it y . BUY ER S HA LL I ND E M N I F Y , D EFE N D A N D HO LD S E LLE R , SELLE R ’ S A FF I L I A T ES, P A R T N E R S, M E M B E R S, M ANAG E R S, S HAR E H O L D E R S, I N V ES T M E N T M ANAG E R S, T RU S T E E S, D I R E C T OR S, O FF IC E R S, E M P LOY EES AN D AG E N T S ( I NC L U D IN G AN Y M ANAG E M E N T C O M P ANY ) O F E AC H O F T H EM AN D T H E I R R ESPE C T I V E H E IR S, S UCC ESS OR S, PE R S O N A L R EP R ESE N T A T I V ES AN D A SS IGN S ( CO LLE C T I V E L Y , “ S ELLE R P A R T I E S ”) AN D T H E A SSE T S T O B E ACQU I R ED HAR M LESS F RO M AN D AG A I N ST AN Y AN D A LL DA M AG ES, L IA B I L I T I ES, L O SSES, C L A I M S , L I E N S, CO S T S O R E X P E N SES ( I NC L U D IN G , W I T HOU T L I M I T A T I ON , R E A S ONAB LE A T T ORN E Y ’ S FEES) AR I S IN G OU T O F O R R EL A T I N G T O AN Y E N T R Y O N T H E A SSE T S T O B E ACQ U I R ED B Y BUY ER O R BUY E R ’ S AG E N T S I N T H E COUR SE O F P ER F OR M I N G T H E I N SPE C T ION S, T E S T I N G O R IN QU I R I E S P RO V I D E D F O R I N T H I S A GR EE M E N T , I N C L U D I N G W I T HOU T L I M I T A T I O N DA M AG E T O T H E A SSE T S T O B E ACQ U I R E D O R R ELE A S E O F HA Z ARDOU S S U B S T ANC ES O R M A T E R I A LS ON T O T H E A SS E T S T O B E ACQ U IR ED B Y R E A S O N O F BUY ER O R I T S AG E N T S’ AC T I O N S. T H E F OR E G O I N G IND E M N I T Y S HA LL S U R V I V E T H E T E R M I N A T IO N O F T H I S AGR EE M E N T , E X C EPT T O T H E E X T E N T CAU SED B Y T H E AC T S O R O M I S S I O N S O F S E LLER O R F O R T H E M E R E D I S CO V E R Y O F E X I S T IN G CON D I T ION S.
The p r o v is i ons of t h i s Se ct i on 19.2 s h a l l s u r v i v e f o r si x ( 6 ) y ea r s f o l l o w i ng t he C l o s i ng and d e l i v e r y of t he con v e y an c e d o cu m en ts , and s h a l l not b e d ee m ed m e r g ed i n t o any of t h e Cl o s i ng do c u m en ts .
19.3 A S - I S W H E R E I S S A LE D I S C L O S UR E . T H E F O LL O W I N G S EC T I O N 19.3 S HA LL S U R V I V E C L O S I N G A N D D E L I V E R Y O F T H E D EED O F CON V E Y ANC E:
(a) B u y er ac k no w led g es and a g rees, by co n su m m ati n g the Cl os i n g , it wi ll be dee m ed to ha v e been g i v en a fu l l oppo r tu n ity to i ns pect a nd in v es t i g ate e ach and e v ery aspect o f t h e A sse t s to be A cqu i red, e it her inde p end e n t ly or t hro ug h a g ents of B u y e r ’ s c h o o sin g . A S A M A T E R I A L P A R T O F T H E CON S ID E R A T I O N F O R TH I S AG R EEME N T , S E LLER AN D BUY ER AGR EE T H A T E X C EPT A S M A Y B E E X P R ESS L Y P RO V I D ED I N T H I S AGR EEME N T INC L U D I N G BU T NO T L I M I T ED T O SELLE R ’S SPE C I A L W ARRAN T Y O F T I T LE, R EP R ESE N T A T ION S, W ARRAN T I ES AN D CO V E NAN T S S E T F O R T H H E R E I N (“ S ELLER ’ S W ARRANT I E S ”), SELLER I S S E L L IN G AN D BUY ER I S P URC H A S I N G AN D T A K I N G T H E A SSE T S T O B E ACQ U I R ED O N A N “ A S I S” BA S I S, W I T H AN Y AN D A LL L A T E N T AN D P A T E N T D EFE C T S. BUY ER AC K NO WLE DG ES T H A T O T H ER T HA N SELLE R ’S W ARRAN T I ES, I T I S S O LE L Y R E L Y I N G U P O N I T S E X A M I N A T I O N O F T H E A SSE T S T O B E ACQ U I R E D AND , E X C EPT F O R S E LLE R’ S W ARRAN T I ES, I T I S NO T R E L Y I N G U P O N AN Y R EP R ESE N T A T I ON , S T A T EME N T O R O T H ER
21 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
A SSE R T IO N O F A N Y K I N D W H A T S O E V E R , E X P R ESS O R I M P L I E D , F RO M S E LLE R , I T S AG E N T S O R BRO K E R S A S T O AN Y M A T T ER C ONC E R N IN G T H E A SSE T S T O B E ACQ U I R E D , INC L U D IN G , W I T HO U T L I M I T A T I ON : (i ) T H E QUA L I T Y , N A T UR E , AD E QUAC Y AN D P HY S I CA L CON D I T I O N O F T H E A SSE T S T O B E ACQ U IR E D , (ii ) T H E QUA L I T Y , N A T UR E , AD E QUA C Y , AN D P H Y S ICA L CON D I T IO N O F SO I LS, G E O L OG Y A N D A N Y GROUND W A T E R , ( i i i ) T H E E X I S T E NC E, QUA L I T Y , N A T UR E, AD E QUAC Y A N D P HY S ICA L CON D I T I O N O F U T I L I T I ES SE R V I N G TH E A SSE T S T O B E AC Q U I R E D , (i v ) T H E D E V E L O P M E N T P O T E N T I A L O F T H E A SS E T S T O B E ACQ U I R E D , AN D T H E A SSE T S T O B E ACQ U I R E D U SE, HAB I T A B I L I T Y , M E RCHAN T AB I L I T Y , SU I T AB I L I T Y , V A L U E O R F I T N ESS O F T H E A SSE T S T O B E ACQUIR ED F O R AN Y P A R T I CU L A R P UR P O SE, ( v ) T H E Z O N I N G O R O T H ER LE GA L S T A T U S O F T H E A SSE T S T O B E ACQ U I R ED O R AN Y O T H ER P U B L I C O R P R I V A T E R EST R I C T ION S O N U SE O F T H E A SS E T S T O B E A C Q U I R E D , ( v i ) T H E CO M P L I ANC E O F T H E A SSE T S T O B E ACQU I R E D O R I T S O PE R A T I O N W I T H AN Y A PP L ICAB LE COD ES, L A W S, R E GU L A T I ON S, S T A T U T E S , OR D I N A NC ES, CO V E N AN T S, CON D I T ION S AN D R ES T R I C T I ON S O F A N Y GO V E RN M E N T A L O R QUA S I- G O V E RN M E N T A L E N T I T Y O R O F AN Y O T H ER PE R S O N O R E N T I T Y , ( v ii ) T H E P R ESE NC E O F HA Z A R DOU S M A T E R I A LS ON , UND ER O R ABOU T T H E A SSE T S T O B E ACQ U I R E D O R T H E A D J O I N IN G O R N E I G HBO R I N G R E A L P RO PE R T Y , ( v i i i ) T H E QUA L I T Y O F AN Y L ABO R A N D M A T E R I A LS U SED I N A N Y I M P RO V E M E N T S O N T H E A SSE T S T O B E ACQ U I R E D , (i x) T H E C ON D I T I O N O F T I T LE T O T H E A SS E T S T O B E ACQ U I R E D , ( x) T H E R I GH T S AN D OB L IG A T ION S O F S E LLER U ND E R , O R T H E S T A T U S O F , T H E O I L, GA S A N D M I N E R A L LE A SES, AN D ( x i ) T H E E CONO M I C S O F T H E O PE R A T I O N O F T H E A SS E T S T O B E ACQ U I R E D .
(b) W I T HOU T L I M I T IN G T H E ABO V E, E X C EPT W I T H R ESPE C T T O A BR E AC H B Y SELLER O F AN Y O F SELLE R ’S W ARRAN T I ES I N T H I S A GR EEME N T BUY E R , F O R AN D O N B E H A L F O F I T SEL F , AN Y E N T I T Y A FF I L I A T ED W I T H BUY ER AN D I T S S UCC ESS OR S A N D A SS I GN S, W A I V ES I T S RIGH T T O R E CO V ER F RO M AN D F OR E V ER R ELE A SES AN D D I S CH ARG ES T H E S E LLER P A R T I ES F RO M AN D A GA I N ST AN Y AN D A LL D EM AND S, C L A I MS, LE GA L O R AD M I N I S T R A T I V E P ROC EE D I NG S, L O SSES, L I AB I L I T I ES, DA M AG ES, PE NA L T I ES, F I N ES, L I E N S, J UDG ME N T S, CO S T S O R E X P E N SES W H A T S O E V ER ( I NC L U D IN G , W I T HOU T L I M I T A T I ON , A T T ORN E Y S’ F E ES AN D CO S T S) O F W H A T E V ER K I N D O R N A T UR E, D I R E C T O R I N D IR E C T , K NO WN O R UN K NO W N , F OR ES E EN O R U N F OR ESEE N , E X I S T I N G AN D F U T UR E, CON T I NG E N T O R OT H E R W I SE ( I NC L U D I N G AN Y AC T I O N O R P ROC EE D I N G , BROU G H T O R T HR E A T E N E D , O R ORD E R ED B Y AN Y A PP RO P R I A T E GO V E RN ME N T A L E N T I T Y ) T H A T M A Y AR I SE O N ACCOUN T O F O R I N AN Y W A Y B E CONN E C T ED W I T H O R R EL A T I N G T O T H E A S S E T S T O B E ACQU I R ED CON D I T I O N O R AN Y L A W O R R E GU L A T I O N A PPL ICAB LE T H E R E T O , INC L U D IN G W I T H O U T L I M I T A T I ON , T H E P R ESE NC E, M I S U SE, U SE, D I SP O S A L, R EL E A SE O R T HR E A T E N ED R ELE A SE O F A N Y HA Z ARDOU S O R T O X I C M A T E R I A LS, CH E M ICA LS O R W A S T ES A T T H E A SS E T S T O B E ACQ U I R E D A N D AN Y L IA B I L I T Y O R C L A I M R EL A T ED T O T H E A SSE T S T O B E ACQ U IR ED A R I S IN G U N D ER T H E CO MP R E H E N S I V E E N V IRON ME N T A L R ESP ON SE, CO MP EN S A T I ON , AN D L I A B I L I T Y AC T O F 1980, A S A ME ND ED (42 U .S. C . SE C T I O N 9601 e t seq . ), T H E S U PE R F UN D A ME ND M E N T S AN D R E AU T HO R I Z A T I O N AC T O F 1 9 86, T H E R ES OURC E CON SE R V A T I O N AN D R E CO V E R Y AC T o f 19 7 6 ( 42 U .S. C . SE C T I O N 6901 et s eq.), T H E C LE A N W A T ER AC T ( 33 U .S. C . S EC T I O N 1251 e t s eq . ), T H E S A FE DR I N K I N G W A T ER AC T ( 42 U .S. C . SE C T I O N 300F et seq.), T H E HA Z ARDOU S M A T E R I A LS T RAN SP O RT A T I O N AC T (49 U .S. C . SE C T I O N 5101 et seq.), T H E T O X I C S UB S T ANC ES CON T RO L AC T (15 U .S. C . S EC T I O N 2601 et seq.), E AC H A S A ME N D E D , O R AN Y O T H ER CAU SE O F AC T I O N BA S ED O N AN Y O T H E R S T A T E, L OCA L, O R F ED E RA L E N V I RO N ME N T A L L A W , RU L E O R R E GU L A T I O N ( CO LLE C T I V E L Y , “ ENV I R O N M EN T A L L A WS ”).
22 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
R I G H TS T O ASS I GN R I G H TS H EREUNDER
20.1 B u y er s h a l l h a v e t he r i g ht t o a ssi g n i t s r i g h t s h e r eu nd er t o a co r p o r a t i on, p a r t n e r s h i p or li m it ed l i a b i li t y co m p a n y w h i ch co n tr o l s B u y e r , i s c on tr o l l ed by B u y er or H ea t h A . R u s h i n g , or i s und e r co m m on con tr o l w it h B u y er o r H e a t h A . R u s h i ng ( “ con t r o l ” as u s ed i n t h i s S ec t i on 20.1 s h a l l m ean ho l d i ng fi f t y - one p er ce n t ( 5 1 % ) o r m o r e of t he eq u i t ab l e or l e g al i n t e r e st s o f t he ap p l i ca b l e e n t i t y , and any s u c h qu a l i f y i ng en t i t y s h a l l be r e f e r r ed t o h e r e i n as a n “ A ffi l i a t e ”) w it h o ut t he p ri o r w r i t t en co n s e n t of Se l l e r , p r o v i d ed any a ssi g n e e of B u y er p er m i t t ed u nd e r t h i s Ar t i c l e 20 s h a l l be r e f l e c t e d i n a w r it t e n a ssi g n m ent of t h i s A g r ee m ent i n w h i c h t h e a s si g n e e exp r e s s l y a ss u m es a l l of B u y e r ’ s ob l i g a t i ons u n d e r t h i s A g r ee m ent f o r t he e x p r e s s b e n e f i t of S e l l e r , a n d f u r t h e r p r o v i d e d any s u ch a s si g n m ent s h a l l not r e l ea s e B u y er f r om it s o b l i g a ti ons und e r t h i s A g r ee m en t , and a copy of s u ch f u l l y ex e c u t ed a s s i g n m ent and a ss u m p ti o n a g r ee m ent s h a l l upon t h e ex e c u t i on t h e r e o f be p r o m p tl y p r o v i d e d by B u y er t o Se ll e r . I n t he e v ent t h at B u y er a s s i g ns it s r i g h t s h e r eun d er t o an A f fi l i a t e, s u ch A f f i l i a t e s h a l l be e n t i t l ed t o t h e s a m e ri g h ts , and s h a l l be s u b j ect t o t he s a m e l i ab i l i t i e s , t h a t B u y er h a s h e r e u nd e r , a n d B u y er co v en a n t s a n d a g r ees t h a t B u y er w i l l c au s e s u c h en t it y t o p e r f o r m i n acc o r d a n ce wi t h t he p r o v is i ons h e r e o f .
20.2 I t i s t he i n t e n t i on o f S e l l er t o t r an s f e r a l l o r a p o r ti on of t he A s s e t s t o be A cqu i r ed pu rs u ant t o I n t e r n a l R e v enue C ode S e c t i on 1031, w h i ch s e t s f o r t h t he r equ i r e m en t s f o r t a x - d ef e r r e d ex c h a n g e s . A l l o r a p o r t i o n of S e ll e r ’ s ri g h t s and ob li g a t i ons u nd e r t h i s a nd f u t u r e a g r ee m en t s m ay be a ssi g n e d by Se l l e r t o CHICAG O D EFE RR ED E X CHANG E CO M P AN Y LLC or s o m e o t h e r qu a l i f i e d i n t e r m ed i a r y an d / o r ex c h a n g e acco m m od ati on t i t l eh o l d e r s e l e c t ed by Se l l er a t Se l l e r ’ s d i s c r e t i on ( e a ch s u c h q u a l i f i ed i n t e r m ed i a r y , a “ Q u a l i fi ed I n t e r m e d i a r y ” and ea c h s u ch e x ch a n g e a c co m m od ati o n t i tl e ho l d e r , an “ E A T ” ) , f o r t he p u r po s e of co m p l e t i ng an ex c h an g e; p r o v i d e d, h o w e v e r , Se ll e r wi l l r e m a i n li a b l e f or t he f a i l u r e of any of i t s a s si g n e e s t o p e rf o r m each o f t he o b l i g a ti o ns un d er t h i s A g r ee m ent or t he tr a n s a c t i on do c u m en ts . B uy er a g r ees t o c oop e r a t e w it h S e ll e r and e a ch Q u a l i f i ed I n t e r m ed i a r y an d / o r E A T and t o a c k no w l ed g e a ny s u c h a s s i g n m ent upon r e qu es t of S e l l er i n a m ann e r r ea s on a b l y n e ce s s a r y t o en a b l e S e l l er t o co m p l e t e s a i d ex c h an g e. Such coop e r a t i on s h a l l b e a t no a dd i t i on a l co s t or l i ab il it y t o B u y e r .
ART I CLE 21
ASS I GN M ENTS AND N O REC O RD I NG
Ex c ept as p r o v i d e d i n A r t i c l e 20, t h i s A g r ee m ent s h a l l not be a s s i g n a b l e by B u y e r . B u y er s h a l l n o t r ec o r d t h i s A g r ee m ent or a n y m e m o r andum t h er e o f i n t he pu b li c r e co r d s .
ART I CLE 22
G O VERN I NG L A W
T h i s A g r ee m ent s h a l l b e i n t e r p r e t ed a n d c on s tr u ed i n a c co r d an c e wi t h t h e l a w s o f t he S t a t e of F l o r i d a . S e l l er and B u y er ag r ee t h a t any a c ti on or p r o cee d i ng a g a i n s t t he o t h e r P a rt y a r i s i ng out of or i n conne c t i on wi t h t he tr a n s a c ti o n s co n t e m p l a t ed by t h i s A g r ee m ent m a y be co m m e n c ed o n l y i n t he Ci r c u i t C ou r t i n and f o r V o l u s i a C oun t y , F l o r i d a , o r i n t h e U n i t ed S t a t es Fe d e r a l D i s t ri ct C ou r t f o r t he Mi d d l e D is t ri c t o f F l o r i d a , a s a p p li cab l e.
ART I CLE 23
EXECUT IO N I N C O UNTER P A R TS
T h i s A g r ee m ent m a y be ex e cu t ed i n o n e or m o r e cou n t e r p a r ts , e ach of w h i ch s h a l l be d e e m ed t o be an o ri g i n a l b u t a l l of w h i ch s h a l l con s t it u t e b u t o n e a nd t he s a m e do c u m en t .
23 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
MIS CELLANE O U S
24.1 En t i r e A g r ee m en t . T h i s A g r ee m ent c on s t i t u t es t he e n t ir e a g r ee m ent b et w e en t he Pa r t i es h er e t o p e r t a i n i ng t o t he s ub j e c t m a t t e r s h e r e o f a nd s up er s ed e s a l l n e g o t i a t i o n s , p r e li m i n a r y a g r ee m en t s and a l l p r i or o r co n t e m po r a n e ous d is c u s s i ons a nd und e rs t and i n g s of t he P a r ti e s h e r e t o i n co n n e c ti o n w i t h t he s u b j ect m a t t e r s h e r e o f .
24.2 W a i v e r s and A m end m en ts . Th i s A g r ee m ent m ay be a m end e d, m od ifi e d , s up e rs e d ed, can c e l l ed, r en e w ed o r e x t e nd e d, and t he t e r m s and c ond i ti o n s h e r eof m ay be w a i v ed on l y by a w rit t en i n s tr u m ent si g n e d by t he P a r t i es o r , i n t h e ca s e of a w a i v e r , t he P a rt y w a i v i ng co m p li an c e . N o d el ay on t he p a r t of any Pa r t y i n e x er c i s i ng any ri g h t , po w er or p ri v i l e g e h e r eund e r sh a l l op e r a t e a s a w a i v er t h e r eo f , nor s h a l l any w a i v er on t h e p a r t o f any Pa rt y of any ri g h t , po w e r or p ri v i l e g e h er e unde r , n or any si n g l e o r p a r t i al e x e r c i s e of any ri g h t , po w er o r p r i v il eg e h er eund e r , p r e c l u de any o t h e r or f u r t h e r ex e r c i s e t h e r eof or t h e e x e r c i s e o f a ny o t h e r r i g h t , po w e r o r p r i v il e g e h e r eu n d e r . The ri gh t s a nd r e m ed i es of any Pa rt y a r i s i ng out of o r o t h e rw is e i n r e s p e c t o f any i n a cc u r acy i n o r b r each o f any r e p r e s en t a t i on, w a rr a n t y , co v en a nt o r a g r ee m ent c o n t a i n e d i n t h i s A g r ee m ent s h a l l i n n o w ay be li m i t ed by t he f a c t t h a t t h e a c t , o m issi on, o c cu r r e n ce or o t h e r s t a t e of f a c t s up o n w h i ch any c l a i m of any s u c h i n a c cu r acy or b r e ach i s b as ed m ay a ls o b e t he s ub j e c t m a t t er of any o t h e r r e p r e s e n t a t i on, w a r r a n t y , co v en a nt or a g r ee m ent con t a i n e d i n t h i s A g r ee m ent ( or i n any o t h e r a g r ee m ent b et w een t h e Pa r ti e s ) as t o w h i ch t h e r e i s no i n a c cu r acy or b r ea c h.
24.3 H ead i n g s and C a p ti o ns a n d T i m e i s of t he E s s en c e . The t i t l es o r ca p ti o ns of A rt i c l e s , Sec t i ons and Pa r a g r aphs i n t h i s A g r ee m ent a r e p r o v i d ed f or con v en i e nt r e f e r e nc e on l y , and s h a l l n ot be con s i d e r ed a p a r t h e r eof f o r p u r po s es o f i n t e r p r e ti ng o r co n s t r u i ng or a p p l y i ng t h i s A g r ee m en t , and s u c h t i tl e s o r ca p ti o ns s h a l l n o t d ef i n e , l i m it , e x t e n d, e xp l a i n or d e s c r i be t he s co p e o r ex t e n t of t h i s A g r ee m ent or any o f it s t e r m s or con d i t i on s . T i m e i s of t h e e ss e n ce i n t h i s A g r ee m ent a nd i n t h e p e rf o r m an c e o f a l l ob li g a t i o n s o f t he Pa r t i es under t h i s A g r ee m en t . A ny t i m e p er i od p r o v i d e d f or h er e i n w h i ch en d s o n a Sa t u r d a y , Sunday o r l e g al ho l i d a y s h a l l be a u t o m a ti ca ll y e x t en d ed t o 5 : 00 p. m . Ea st e r n T i m e of t h e n e x t B u si n e s s D a y .
24.4 N o ti c e s . Al l no t i c e s h e r e u nd e r o r i n co n n e c ti o n h e r e w it h s h a l l be i n w r i ti n g , s h a l l b e e f f e c t i v e w h e n r e c e i v ed, a n d, i f t o Se l l e r , s h a l l b e s u f f i c i e n t i f d e li v e r e d i n p e rs o n or by r e g u l ar m a i l o r by any r epu t a b l e n a t i on a l o v e r n i g ht or n e x t bu s i n e s s d a y cou r i er o r by e m a i l or o t h e r e l e c t r on i c d e l i v e r y or by f ac si m il e t o, a n d i f t o B u y e r , s h al l be s u f f i c i ent i f d e l i v e r ed i n p e rs o n or by r e g u l ar m a i l or by any r ep u t a b l e n a t i on a l o v e r n i g ht or n ext bu s i n e s s d a y co u r i er or by e m a i l or o t h e r e l e c t r on i c d e li v e r y t o :
If t o Se l l er: I nd i g o G r oup I n c .
A tt n : J ohn P . A l b ri g h t , P r es i d e n t
A tt n : T ere s a T h o r n t on- H il l, Co r porate Coun s el
1530 C o r n e r s t o n e B ou l e v a r d, Su i t e 100
Da y t ona Beac h , FL 3 2 1 17
Phone: 386.27 4 .2202
E m a il : j a l b ri g h t @ c t l c . com E m a il : t t h o r n t o nh i ll @c t l c. c om Fac si m i l e: 3 8 6.274. 1 223
W it h c opy t o : R ob er t A . Lea p l e y , J r . , E s q u ir e
A k e r m an LLP
50 N o r t h La u r a S t r e e t , S u i t e 3100
Jac k son v i l le, FL 32202
24 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
E m a il : R ob e rt . l e a p l e y@ a k e r m an. c om
Fac si m i l e: 9 0 4.798. 3 730
If t o B u y e r: Land V en t u r e P a r t n e rs , L L C
125 R o g er S t o r m e R o a d
Mad i son v i l le, LA 7 0447
A tt n : He a t h A. Ru s h i ng
E m a il : h a r u s h @ a o l .com
W it h c opy t o : W it h copy t o :
Gee O g l e t ree, E s qui r e
Ad a m s and Ree s e LLP
1018 H i g h l a n d C o l o ny Pa r k w a y , Su it e 8 00
R i d g e l and, M S 39 1 57
E m a il : G ee. O g l e tr e e @ a r l a w .com
Fac si m i l e: 6 0 1.944. 9 051
24.5 C e rt a i n D e f i n i ti o n s . T he w o r ds “h e r eo f ,” “ h e r e i n , ” “ h e r e t o,” “h e r eb y ” and “h e r e unde r ”
re f er to t he e n t ire A g ree m ent.
24.6 R is k of L o ss . U n t i l c on s u m m a ti on of t he C l o s i n g , a l l r i s k of l o s s w i t h r e s p e c t t o t h e
A ss ets t o be Ac q ui r ed s h a ll r e m a i n w i th S e ll e r .
24.7 Pub l i c D i s c l o s u r e . A ny r e l ea s e t o t he p u b l i c of i n f o r m a ti on wi t h r e s p e ct t o t he s a l e con t e m p l a t ed h e r e i n or any m a tt e r s s e t f o r t h i n t h i s A g r ee m ent wi l l be m ade o n l y i n t he f o r m app r o v ed by Se l l er u n l e s s s u c h d i s c l o s u r e i s r eq u ir e d p u rs u a n t t o l aw or i s o t h e r w i s e ex p r e ss l y au t ho r i z ed pu r s u a n t t o t h i s A g r ee m en t .
24.8 D is c l o s u r e o f C on f i d e n t i al I n f o r m a ti on.
(a) B u y er spe c i f ic a lly ac k n o w led g es t h at the c o m m o n st o ck of C ons o li d at e d- T o m o k a, an affi l i a te of S el l er, i s tr a ded on t h e NY SE M K T under the t ic k er “ C T O ”. B u y er fu r th e r expr e s s ly ac k no w led g es t h at i t is a w are o f and wil l a d v ise i t s re p r e se n ta t i v es w ho are inf o r m ed as to t he m atters t h at a re t h e su b je c t of this A g ree m ent th a t t h e sec u r i ti e s la w s o f the U n it e d St a tes p r ohi b i t any pers o n w ho has re c ei v ed from an issuer m ate r ia l , non - public inf o r m ation, inclu d ing inf o r m ati o n conc e rn i ng the m atte r s th a t are the s u b ject o f t h is A g ree m ent, from purcha s ing or se ll ing secu r i t i e s o f such iss u er o r f rom co m m u nic a t i ng such i nf o r m ation t o any oth e r p e rson.
(b) Except to the e x te n t req u i r ed by the Secur i t i es and E xchan g e C o m m ission (t h e “ S EC ”) or o th e r g o v ern m e nt a l au t ho r ity and p r ess r e l eas e s as s oc i a t ed t h ere w ith or in c onn e c t ion wi th t h e purs u it o f appro v a l s or ot he r due di l i g ence, p ri o r to Cl osin g , the e x is t en c e of t h is A g ree m ent, the ter m s of th i s A g ree m ent, and any o t her inf o r m ation d i s cl o sed i n the S e l l e r ’ s d u e d i l i g e n c e m a t e r i a ls , t he B u y e r ’ s due d i li g ence r ep o r t s , or a ny other d o cu m ents, m ate r ia l s, d a ta, o r o th e r i n f o r m ation w ith r e spe c t to t he Prop e rty w hich is n o t g ener a lly k no w n to the p ub l ic or w hich is n o t o th e r w i s e set f o r th in any publ i c rec o rds s h a l l be k ept co n f i den t i a l, and t he Pa r t i es s h all n o t d i s c lose such i nf o r m ation to any per s on o r en t it y , oth e r t han to t h e i r res p ec t i v e a t to r ne y s, sh a reh o ld e rs, o f f ic e rs, e m pl oy ees, di r ec t or s , l e nde r s, ad v isor s , co n su l ta n ts, and pros p ec t i v e in v e s to r s, or p rof e s s ion a ls r e ta i ned to pe rf o rm ser v ices req u i r ed under the t e r m s of th i s A g ree m ent, or e m plo y ees, o r o ther w ise as r eq u ir e d by appl i ca b le l a w s or a l ready in t h e pu b lic d o m ain. N oth i ng in th i s Se c t i on s h all (e x ce p t as m ay be else w he r e l i m ited i n t h i s A g ree m ent) r e s t ri c t B u y er from con t ac t ing Se l l e r’s c o m pa n y off i c i als, p r ope r ty e n g ineers and a r ch i t e ct s ,
25 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
and o t h e r t h ir d p a rt y con s u lt a n t s a ss i s t i ng B u y er i n it s i n v e sti g a t i on of t he P r o pe rt y , or fr om con t a c t i ng g o v e r n m en t al a u t h o r i t i es r eg a r d i ng z on i n g , l and u s e or code c o m p li an c e m a tt e r s .
(c) Sel l er s ha l l u s e i ts b e st r easo n ab l e g ood fa i th e ff o r ts to cau s e C ons o l i da t ed- T o m o k a to issue a p re s s r ele a se, i n a form a g reed t o by B u y er, Sell e r and C o nso l id a ted - T o m o k a (the “ Pre s s R e l ea s e ”) or an S E C f i ling c o n f ir m ing the ex e cu t ion o f th i s A g ree m ent b y B u y er and S e ll e r (t h e “ S E C F i l i ng ” ), wi t h in f our (4) B us i ne s s D a y s f rom the Ef f e c ti v e D a t e o f t his A g ree m ent. F rom and a f t e r the d a te of any such Pr e ss R ele a se or S E C Fi l in g , B u y er shall ha v e t h e ri g ht to co m m unicate co n ce r ning the e x i s te n ce of th i s A g re e m ent w ith any pers o n or e n t i ty ha v ing an inte r e s t in o r ar i sing out o f t h e A ss e t s to be A cqu i red p r o v ided B u y er does not d i s c lose any m ater i al i nf o r m ation be y ond that s et f o r t h in t h e Press R e l ease or the S E C F i l in g , as ap p l i ca b le.
24.9 A c k no w l edg m en t . B u y er ac k no w l ed g es t h a t as a pu b l i c l y - tr ad e d c o m p a n y , C on s o li d a t e d- T o m o k a i s r eq u i r ed t o m a i n t a i n a n d a d h e r e t o c e rt a i n po l i c i es and p r o ced u r e s , i n c l ud i ng a C ode of B u si n e s s C ond u ct a nd E t h i cs ( t he “ C T O P o l i c i e s ”) w h i ch c an be r e v i e w ed a t h t t p : / / i r . c t l c. c o m / g o v do cs . B u y er r ep r e s e n ts , w a r r an t s and co v en a n t s t h a t , t o i t s cu r r ent ac t u a l k no wl ed g e, t he e n t e ri ng i n t o of t h i s A g r ee m en t , t he t r an s a c ti on con t e m p l a t ed h e r eby and t he a ss o c i a t ed c i r cu m st an c es do n o t co n s t it u t e no r g i v e ris e t o a v i o l a t i on o f t h e C T O P o l i c i e s .
24.10 B u si n e s s D a y s . A s u s ed i n t h i s A g r ee m en t , t h e t e r m “ B u s i ne s s D ay ” s h a l l m ean any d a y o t h e r t h a n a S a t u r d a y , Su n d a y or d a y on w h i ch t h e b an k s i n F l o r i da a r e a u t h o r i z ed or p e r m it t ed t o b e c l o s ed. I f t he d at e f o r c o m p li an c e w i t h t h i s A g r ee m ent i s not a B u si n e s s D a y , t h e n s u c h d at e s h a l l be au t o m a t i ca l l y ex t e nd e d t o t he n e x t B u s i n e s s D ay f o l l o w i ng s u c h d a t e.
{Sig n at u r e P a ges F o l lo w }
26 { 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
IN WITNESS WHEREOF, Seller and Buyer have caused this Agreement to be executed as of the
Effective Date.
SELLER:
P
INC.,
a
Florida
corporation
(3725899 4 ; 27} Seller's Signature Page to Agreement of Purchase and Sale
(Akerm1111 Execution Version- Apnl 1 3 , 2016}
LAND VENTURE PARTNERS, LLC, a Louisiana
Title: Sole Member
{37258994;27} Buyer's Signature Page to Agreement of Purchase and Sale
{A k enn a n E xecution Version- Aprill3, 2016}
L I ST O F S C H EDULE S A N D EX HI B I T S 3
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Sch e d u l e |
D e s c r i p t i on |
Sec t i on R e f e r en c e |
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A - 1 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- B re v ard Coun t y |
§3.1 ( a ) |
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A - 2 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- C it r us Coun t y |
§3.1 ( a ) |
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A - 3 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- D eSoto Coun t y |
§3.1 ( a ) |
|
A - 4 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- D ixie C o unty |
§3.1 ( a ) |
|
A - 5 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Fla g ler Coun t y |
§3.1 ( a ) |
|
A - 6 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- H endry Coun t y |
§3.1 ( a ) |
|
A - 7 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- H ernan d o Coun t y |
§3.1 ( a ) |
|
A - 8 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- H i g hlands Coun t y |
§3.1 ( a ) |
|
A - 9 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- I ndian R i v er Coun t y |
§3.1 ( a ) |
|
A - 10 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- La k e C ounty |
§3.1 ( a ) |
|
A - 1 1 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Lee C ou n ty |
§3.1 ( a ) |
|
A - 12 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Le v y C ounty |
§3.1 ( a ) |
|
A - 13 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Man a tee Coun t y |
§3.1 ( a ) |
|
A - 14 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- O k eechobee Coun t y |
§3.1 ( a ) |
|
A - 15 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- O sceo l a Coun t y |
§3.1 ( a ) |
|
A - 16 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Polk C ounty |
§3.1 ( a ) |
|
A - 17 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- S t. Luc i e Coun t y |
§3.1 ( a ) |
|
A - 18 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- Se m inole Coun t y |
§3.1 ( a ) |
|
A - 19 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- T a y lor Coun t y |
§3.1 ( a ) |
|
A - 20 |
Min e r a l E s t a tes, R o y a l ty a n d O th e r M in e ral I nte r e s ts- V ol u s i a Coun t y |
§3.1 ( a ) |
|
A - 21 |
L i e s e R o y a lt y - H end r y , H i gh l an d s , Le e , O k eechob e e, O s ceo l a, a n d S t . Lu c i e C ou n ti e s |
§3.1 ( a ) ( i ) & § 5 .6 |
|
A - 22 |
L i b e r t y O i l R o y a l t y- H end r y , H i g h l and s , Lee, O k eec ho b e e, O s ceola, a n d S t . Lu c i e C ou n t ies |
§3.1 ( a ) ( i i ) & §5.6 |
|
B - 1 |
O il , Gas and Mi n eral L e a s e s - F irs t B r e i t Bu r n L ea s e ( L ee Cou n t y ) |
§3.1 ( b ) |
|
B - 2 |
O il , Gas and Mi n eral L e a s e s - Second B r ei t Bu r n Lea s e ( Lee Coun t y ) |
§3.1 ( b ) |
3 Sc h e du les a n d Ex h i b its 1 , 2 , a n d 3 we r e p r o v i d ed b y elect r on ic li n k f r o m Seller to B u y er o n A p r il 12 , 2 0 1 6 . Si m u lta n e ous l y with t h e ci r c u l a ti o n o f Selle r ’ s o r i g i n al e x ec u t e d A gr e e m e n t, Sell e r will al s o p r o v i d e a s et o f h a r d c op ies o f t h e Ex h i b its 1 , 2 , a n d 3 t o B u y e r .
{ 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }
|
B - 3 |
O il , Gas and Mi n eral L e a s e s - K e r o g en Lea s e ( He n d r y Coun t y ) |
§3.1 ( b ) |
|
C |
L i t i g a ti on - Se ll er |
N / A |
|
D |
Pe r m itt e d Ex c e p t i ons |
N / A |
|
E |
P r e - Ex ist i ng R e l ea s e A g r e e m ent |
§8.1 ( b ) |
|
Exh i b i t |
|
|
|
1 |
E s c r ow A g r ee m ent |
§4.2 ( a ) |
|
2 |
Fo r m of Spec i al W a rr a n t y D eed |
§13.1 ( b ) |
|
3 |
Fo r m (s ) of A ssi g n m ent and A ss u m p ti on A g r ee m en t ( s ) |
§13.1 ( c) |
{ 3 72 5 89 9 4 ; 2 7 }{ A k e r m a n E x e cu t i o n V e r s i o n - A p r i l 1 3 , 2 01 6 }