Any repeal or amendment of provisions of our Bylaws affecting indemnification rights,
whether by our board of directors, stockholders or by changes in applicable law, or the adoption of any other provisions inconsistent therewith, will (unless otherwise required by law) be prospective only, except to the extent such amendment or
change in law permits us to provide broader indemnification rights on a retroactive basis, and will not in any way diminish or adversely affect any right or protection existing thereunder with respect to any act or omission occurring prior to such
repeal or amendment or adoption of such inconsistent provision.
In connection with the Mergers, the Registrant and the entity into which
Earthstone was merged (the Surviving Company) have agreed to, jointly and severally, indemnify, defend and hold harmless, in the same manner as provided by Earthstone immediately prior to August 21, 2023, each person who has
been at any time prior to August 21, 2023 or who became, prior to the Initial Company Merger Effective Time (as defined in the Merger Agreement), an officer, director of Earthstone or any of its subsidiaries or who acts as a fiduciary under any
employee benefit plan sponsored, maintained, or contributed to by Earthstone, or was serving at the request of Earthstone or any of its respective subsidiaries as a director, officer or fiduciary of another corporation, partnership, limited
liability company, joint venture, employment benefit plan, trust or other enterprise, in each case, when acting in such capacity (whom are referred to herein as the indemnified persons) against all losses, claims, damages, costs, fines,
penalties, expenses (including attorneys and other professionals fees and expenses), liabilities or judgments or amounts that are paid in settlement of, or incurred in connection with, any actual or threatened proceeding to which such
indemnified person is a party or is otherwise involved (including as a witness) based on, in whole or in part, or arising out of, in whole or in part, the fact that such person was an officer or director of Earthstone or any of its subsidiaries, a
fiduciary under any employee benefit plan sponsored, maintained, or contributed to by Earthstone or is or was serving at the request of Earthstone or any of its respective subsidiaries as an officer, director or fiduciary of another corporation,
partnership, limited liability company, joint venture, employee benefit plan, trust or other enterprise, as applicable, or by reason of anything done or not done by such person in any such capacity, whether pertaining to any act or omission
occurring or existing prior to, but not after, the Initial Company Merger Effective Time and whether asserted or claimed prior to, at or after, the Initial Company Merger Effective Time (which liabilities are referred to herein as indemnified
liabilities), including all indemnified liabilities based in whole or in part on, or arising in whole or in part out of, or pertaining to the Merger Agreement or the transactions contemplated thereby, in each case to the fullest extent
permitted under applicable law (and we and the Surviving Corporation will, jointly and severally, pay expenses incurred in connection therewith, including but not limited to expenses for the retention of Earthstones regularly engaged legal
counsel or other counsel satisfactory to Earthstone, in advance of the final disposition of any such proceeding to each indemnified person to the fullest extent permitted under applicable law).
Until the six-year anniversary date of the Initial Company Merger Effective Time, neither
the Registrant nor the Surviving Company will amend, repeal or otherwise modify any provision in the organizational documents of the Surviving Company or any of its subsidiaries in any manner that would affect adversely the rights of any indemnified
person to indemnification, exculpation and advancement except to the extent required by applicable law. We shall, and shall cause the Surviving Company and its subsidiaries to, fulfill and honor any indemnification, expense advancement, or
exculpation agreements between Earthstone or any of its subsidiaries and any of its officers, directors existing and in effect immediately prior to the Initial Company Merger Effective Time.
The Registrant and the Surviving Company have put in place, and the Registrant has fully prepaid, tail insurance policies with a
claims reporting or discovery period of at least six years from the Initial Company Merger Effective Time (the tail period) from an insurance carrier with the same or better credit rating as Earthstones current insurance carrier
with respect to directors and officers liability insurance (D&O insurance) in an amount and scope at least as favorable as Earthstones existing policies with respect to matters, acts or omissions existing or
occurring at, prior to, or after the Initial Company Merger Effective Time; provided, however, that in no event shall the aggregate cost of the D&O insurance exceed during the tail period 300% of the current aggregate annual premium paid by
Earthstone for such purpose; and provided, further, that if the cost of such insurance coverage exceeds such amount, the surviving entity shall obtain a policy with the greatest coverage reasonably available for a cost not exceeding such
amount.